It often happens that some problems with the building are flagged from a survey which the buyer is completely unaware of even being there. Ranging from structural issues, damp, timber and roof defects to mortgage companies even refusing because of the invasive garden species Japanese knotweed. So a bad survey can put a sour note on buying a new home.
If after finding out all the facts you still wish to continue, you may want to agree on a price reduction as a result of the survey findings and you are absolutely within your rights to do this. Your offer to purchase was ‘subject to contract’ and this includes the results of any survey you have undertaken. If construction defects have been identified then these may well affect the value of this property.
What will be the reaction of the Vendor and their Agent?
Estate agents are unlikely to be fazed by your appeal to renegotiate the price due to a ‘bad’ survey.
Furthermore, a buyer would not have known about such a problem in the first instance. So if you now learn about new information that could influence the property’s worth, it is not unreasonable for you to ask for a reduction.
After all, you aren’t committed to buying the house until contracts are exchanged – and if the surveyor considered there were problems then other buyers will too and the house will go back on the market.
How to Renegotiate a previously-accepted Offer
If you are serious about asking for a reduction in price after the findings by your independent RICS Chartered Surveyor, communicate this to the agent. The vendor may be accepting of the reasons behind the renegotiation.
Reasons for Renegotiation on Property Price in Wimbledon, London
You can include a list of the major defects that were flagged up in the survey, the costs of repairing them, and then list the serious and urgent maintenance issues yourself (e.g. masonry in disrepair). There’s no need to supply a copy of the whole survey to either the estate agent or the vendor, however.
Add up the costs and then decide what sort of new offer price you think is reasonable. You might decide to claim for the entire cost of repairs, or you might come to a sympathetic sharing of the costs with the vendor. Including quotes from contractors can help to strengthen your proposal and your renegotiation chances if necessary.
If you need further guidance in this regard, get in touch with the team of surveyors for expert advice.
The stronger your survey evidence, the stronger your negotiating position – a Level 3 Building Survey gives you the detailed defect and repair findings that justify a price reduction.
We provide the surveys that support price negotiation across Knightsbridge, Notting Hill, Buckhurst Hill, Chigwell, Westminster and all of London.
What is the average price reduction after a survey?
UK buyers who renegotiate after a survey typically achieve a reduction of around 2% to 5% of the agreed price – on a 600,000 GBP London home, that is 12,000-30,000 GBP. The size of the reduction tracks the evidence: quoted repair costs for specific defects (damp treatment, roof coverings, structural repairs, rewiring) carry far more weight than a general sense that the house needs work. Sellers rarely move on cosmetic findings, but almost always engage with a costed list of genuine defects from an RICS report.
Three rules make renegotiation succeed: act quickly while the seller is committed to the sale; ask for a specific figure tied to contractor quotes rather than a round number; and be ready to walk away on structural findings that the seller will face with every future buyer. Your surveyor can talk the findings through with you before you go back to the agent – it is part of the service.