Can I renegotiate an offer after a home survey?
Moving house can be a scary (but exciting) time. A home survey takes the edge off by reassuring you of the property’s value.
But what if the survey finds some problems? What are your options, and can you renegotiate a new (lower) price?
The answer is a resounding yes. Until you exchange keys you can proceed, renegotiate, slow down, speed up or withdraw your interest. It’s perfectly legal and legitimate, especially when real issues are found with the property. This article explains why this is the case.
What does a home survey look for?
A home survey should be conducted by a chartered surveyor – someone working under the governing body of RICS. The Royal Institution of Chartered Surveyors is an international organisation, and all members must be qualified, competent, experienced and ethical. They must also regularly attend top-up courses and keep up to date with all new legislation.
A RICS home survey can be completed by one of our chartered surveyors to one of three levels:
- Valuation
- Home Survey Level 2
- Home Survey Level 3
In short, a RICS Valuation is simply a separate, independent estimate of the property value. A Home Survey Level 2 adds much more detail, with reports covering the entire building and its grounds. Level 3 Home Surveys add another layer with an in-depth inspection of structural integrity.
A Home Survey Level 2 is appropriate for most would-be buyers. However, if you’re interested in a historic property, cottage, barn conversion, DIY building or heavily renovated house, we’d recommend going an extra step. A Home Survey Level 3 covers all possible aspects.
During a home survey, the chartered surveyor checks the property’s condition. They’ll look for common problems (such as damp, mould, rot, woodworm, subsidence, etc.) as well as less often-seen issues. It’s almost inevitable that they’ll find something you should know about. In many cases, they’ll find quite a lot.
What are my options after a home survey?
After completing the RICS home survey, the chartered surveyor will send you their report. It’ll be complete with pictures, observations and recommendations. You’ll usually receive this report as a PDF file within two weeks (although we always strive to get it to you in one).
After a home survey, your options are still open. You could proceed as before, renegotiate the price, or even back out completely. Until the final papers are signed, passed between solicitors, and the keys exchanged, you are free to make the right decision.
Below, we’ll quickly run you through your three options.
The house has issues that mean you should not consider proceeding
Issues are present – you can negotiate on price or look to share the costs with the vendors
Home surveys usually pick up on several relatively minor issues. Regardless, they should still be fixed before you move in. These types of issues might include:
- Damp
- Rotted beams
- Improperly fitted kitchen or bathroom
- Etc
These problems technically devalue the home. As such, you’re perfectly within your rights to renegotiate a lower price. For example, a new kitchen could be a significant expense. Your chartered surveyor will help guide you towards a reasonable new offer if you like.
Alternatively, you could look to share the costs with the sellers. This is another excellent way to keep your costs down. People generally offer this when they’re particularly keen on the home and want to sweeten the deal for the vendor.
In some cases, you could insist on the vendor repairing all the significant problems before you’ll commit to the purchase. You could then buy the house for the same price but ensure it’s in good condition. There are better options than this, since the current owner might attempt a cover-up DIY job or get the cheapest contractor available. The fault might resurface once some time passes.
You can obtain quotes for works and jump into the purchase with your ‘eyes open’
Finally, you might be happy to pay the cost demanded by the vendor, despite the problems that have been found. Provided your mortgage provider accepts this too, you’ll be taking what we call the ‘eyes open’ approach.
Having a sound estimate of probable future repair costs is crucial. This means you can prepare and budget accordingly. There might be better financial options than this, but if you’re in a highly competitive market, it might be what you need to do.
How can GB Home Surveys help?
GB Home Surveys is a company of chartered surveyors based around the South West, West Midlands and South Wales. We’re experienced and qualified, having carried out hundreds of surveys across the areas we service.
If you’re interested in a home and keen to get a home survey, why not get in touch with us? We’re always pleased to have obligation-free chats, explaining what’s best for you and your options. You can also check out our free Quote Calculator by following the above link.
Get in touch using the form below. We look forward to your message.
