What to do after a bad house survey report
You’ve gone all in and fallen in love with a house. You’ve put in an offer and chosen a suitable surveyor to inspect the property. Positively brimming with excitement, you open up the survey results but as you read down the list you feel your heart sinking. These were not the results you were expecting!
If you’ve had a bad house survey report, don’t despair; you are now more clued up on the condition of the property and have a few options open to you. You can either count yourself lucky for dodging a bullet and start hunting out your next property or start brushing up on your negotiation skills.
What exactly is a bad house survey?
Remember pretty much every house will have at least a few issues with it. Take note of the surveyor’s overall opinion of the property and make sure you get all the information you need, asking anything you’re unsure of. A good surveyor will take their time with you and properly explain things as they know this is an important decision you need to make. Common problems drawn up in house surveys often have feasible solutions so all is not lost.
Get quotes for repair work
Following the survey, you might want to get specialists in, such as plumbers or builders, depending on what the problem is. Get a good idea of cost and timescale for any repairs needed so you can really lay everything out before going ahead with the next step. Remember it’s always worthwhile getting quotes from different recommended traders.
Once you’ve got all the info you need, you then have three options:
Withdraw your offer
If the quotes for the work are coming in too high and you think it would be more trouble than it’s worth you may want to withdraw your offer.
Withdrawing an offer can be a disappointing outcome for both the buyer and seller but it could be the best option in the long run as one couple found:
“I assisted a couple with a Level 2 survey on a bungalow in which I identified non-standard construction with the property being timber framed with rendered external walls.
Such properties may prove difficult to obtain mortgages for and in addition to this issue, whilst the property appeared in good condition internally the renovation works were of a DIY nature and the original fibre cement ceiling boards had been drilled through to fix new plasterboard underneath.
The fibre-cement boards potentially contained asbestos fibres and this could be a significant risk to health requiring further investigations by an asbestos specialist. The buyers chose not to proceed and I have since completed another survey on their behalf on a far more suitable bungalow.”
– Martin Shortt, RICS Home Surveyor
Remember, even if you’ve already put an offer in that’s been accepted you’re not legally obliged to go ahead with the sale. You can pull out at any time right up until the exchange of contracts. The most common time for an offer to fall through on a house is right after a survey so don’t feel bad at all if you choose to do this – it’s important you get things right for yourself.
It’s worth noting though if you do choose to withdraw from the house sale, you might be subject to charges from your solicitor – best to check.
Renegotiate the purchase price
Another option is to put in a lower offer, reflective of the cost of repairs. If this is accepted, you will secure the property you want and have some money left over to get things repaired.
A reasonable offer, backed up with quotes and paperwork from the surveyor and tradesmen will stand a good chance of being considered.
If the seller is in a hurry to sell, they’re more likely to accept a lower offer, especially if you’ve done your homework and validated it with real repair costs.
You could knock off a sizeable chunk of the asking price, making back the cost of the survey many times over through a renegotiation.
Ask the seller if they would be willing to arrange the repairs
Present the seller with your findings and ask if they would prefer to foot the bill for repairs ahead of the sale. This would mean you don’t renegotiate the purchase price and are going ahead with the sale on the promise that the seller is going to fix all that has been agreed to.
Whatever you choose to do, take your time with it. Ask your friends and family what they think – maybe someone has their own experience to share with you which might influence your decision.
If you have any more questions about what to do following a bad house survey result don’t hesitate to get in touch. We’re here to help guide you through this process and make a decision that’s right for you.
Photo credits: header image by Tierra Mallorca, red flag by Sigmund, tools by Elena Rouame, handshake by Chris Liverani, all on Unsplash.