Buyers have the right to negotiate a lower offer on the house if their survey results have revealed significant issues.
So what do you do if a surveyor devalues the house? Sellers are typically reluctant to lower the property price, so using your survey to prepare a case will boost your chances of success. You can use the report to justify a fair price for your dream home.
You can decide whether to have a Level 3 Home Survey, which provides more information on the property’s structure. If your initial survey identified a specific issue, you can arrange a specialist inspection. This will cost more, but both options come with estimated repair costs, which can be used in negotiations.
Negotiating Process Property Price After a Survey
Negotiating a lower offer isn’t guaranteed to work, but there are ways you can boost your chance of success by gathering as much evidence as possible and making your case concisely.
Here is the best way to negotiate a lower offer:
1. Review the Report
After a survey on a house you will get a report from your surveyor. Before making any decisions, read through the report again and ask your surveyor questions if there’s anything you don’t understand. Defects are found in almost every survey, but some issues are easily fixed and don’t warrant a reduction.
The key is to look for major issues that require urgent repairs and use these as a priority going forward.
2. Book Further Inspections
Surveyors can identify issues like damp or subsidence, but if they’re not specialists, they may not provide much detail. Arranging an additional service will increase your overall survey costs, but it can save you thousands in the long term.
If you had a Level 1 or 2 Home Survey, you could consider having a Level 3 Home Survey, as this will highlight structural concerns. No matter which level you choose it is always best to get multiple house survey quotes before choosing a surveyor.
If your surveyor has highlighted a specific issue, you should arrange a specialist inspection, such as a damp specialist.
3. Set a Reduced Price
When deciding how much to offer, you need to be realistic and fair. For example, sellers are unlikely to be receptive if you lower your offer by 20% if you don’t have the proper insight to back this up.
Even if there are significant repairs that are going to cost thousands, you could ask the seller to make sure these are fixed before the exchange or split the costs as a compromise. Lowering the house price by half the repair costs is more likely to be seen as a better price for both parties.
4. Make Your Case
Once you’ve decided on a figure, you need to take time to make your case as professionally as possible. You can send it directly to the seller if you feel comfortable doing so, but in most cases, it’s best to email the estate agent handling the transaction.
Providing as much detail as possible is more likely to be successful, with clear justifications for the reduction and why you have chosen the new price. You can also attach any relevant report pages to back your claims.
You can also use your buying position as leverage where possible. If you are a first-time buyer or a cash buyer, then this limits the property chain, which is advantageous for the seller. You can mention that you will cease negotiations and are ready to exchange contracts if they accept the lower offer.
5. Consider the Seller's Perspective
As with initial negotiations, the seller may counteroffer your reduced offer. In some cases, the seller may agree to fix some issues and reduce the price by a smaller amount.
Some sellers remain adamant about the original offer price, especially if they have lowered the original asking price when accepting your offer. Make sure to consider this when assessing their reasoning while acting in your best interest.
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Who Do You Negotiate a House Offer With?
Many people prefer to speak directly to the seller, which can be easier, but not always possible.
The best way to negotiate the house price is to contact the estate agent, who will pass on your concerns to the seller.
You should also communicate with your conveyancer, as they'll provide legal advice and suggest whether it’s possible to negotiate.
How Much Should I Offer?
You can technically lower your offer by as much as you want, but you risk insulting the seller if you reduce the price by a significant amount.
Typically, the average price reduction is 5-10%, but this is dependent on what kind of defect is found and its severity. You can consult your surveyor and conveyancer for their input if you are unsure how much to offer.
What if My Seller Refuses to Negotiate?
If your seller won’t accept your negotiated offer after you’ve presented your case, you have some options to consider:
Try Again
You can attempt to negotiate again, whether this is reiterating why you’ve chosen the lower price, or even negotiating a smaller discount than before, if this works in your interest.
Proceed with the Sale
Negotiations prolong the process, which in turn increases legal fees and can cause irritation for both sides. Therefore, some buyers deem it best to proceed with the sale with no negotiation.
Withdraw from the Sale
If the damage is serious and you can’t afford the additional costs, you can pull out of the transaction without facing legal action. Keep in mind that any disbursement and survey money spent up to this point will not be refunded.
Does It Affect My Mortgage Offer?
If the negotiation is successful, you’ll need to contact your mortgage lender, as the application will have to be altered based on the property’s new value. This also applies if you encounter a down-valuation.
If you don't inform your lender of any changes, you'll end up borrowing the original agreed price, resulting in higher payments.
Finding a Surveyor
If you had a Level 1 or 2 Home Survey and want to learn more about your property’s structural integrity, you can arrange a Level 3 Home Survey. Compare My Move will match you with up to 5 RICS-regulated surveyors operating in your area.
You'll have the opportunity to discuss your requirements with each match beforehand so you can make the right choice, while also potentially saving up to 70% on your survey costs.
All our surveying partners have passed our strict verification process to join our network. This includes being regulated by RICS to ensure they adhere to industry standards.
Need a Removal Company?
Once your survey is conducted and the purchase is complete, you may need a removal company. Our surveying form lets you request removal companies in just a few extra steps. We can connect you with up to 6 removal companies and save up to 70% on your moving fees.
FAQs
Do I need a survey?
Having a survey is not a legal requirement, but it is highly recommended as it ensures buyers are aware of any major issues before committing to the property purchase.
Most mortgage lenders require a Mortgage Valuation as part of the application, rather than a survey. This determines whether the property is worth the financial risk for the provider and does not offer insight into the property's condition.
What are the common issues found in surveys?
Not all defects will affect the property's overall value, but there are some common house survey red flags that you should keep an eye on, including:
- Damp
- Japanese Knotweed
- Roof Issues
- Electrical Problems
- Subsidence
In some cases, the seller may agree to repair certain things before exchanging contracts, while severe issues like subsidence are likely to be your responsibility in the future.
