Survey reveals defects: what are my options?

Survey reveals defects

I’ve just received my survey report and the survey reveals defects. What are my options?

1. If your survey reveals defects, the first thing to do is get quotations from contractors for the works.  Survey reports don’t generally include cost estimates because the actual costs can vary depending on whether any work is carried out in isolation or as part of a larger scheme.  Make sure that you are fully aware of the cost of all works before exchange of contracts.

2. For most works it is better to choose your own contractor rather than letting the vendor arrange to have the work done.  Most works can wait until after the purchase is complete.  If you appoint a contractor yourself then you can make sure the works are completed to your satisfaction.

3. If the survey reveals defects which are significant and not reflected in the asking price, you may wish to renegotiate the purchase price.  Renegotiation is usually done through the estate agent rather than directly with the vendor.  Remember that the vendor is under no obligation to reduce the price.  Any renegotiation will depend on how much the vendor can afford to reduce the price by.  In some cases the asking price may take into account the condition of the property and there may not be any scope for renegotiation.  Negotiation of the purchase price is a delicate balancing act and may not always go to plan.  If there are other buyers on the scene then the vendor may choose to sell to another buyer.  Similarly, a vendor may decide to take the property off the market if the likely selling price is less than anticipated.

4. You are not under any obligation to give a copy of the survey report to the vendor or even the estate agent.  They may ask for a copy but the decision is yours.  However, in some cases it may be helpful to give an extract to the estate agent to help negotiations.

5. If you find that the cost of the works is higher than your budget you may choose to withdraw and look for another property.  This is only usually an option before exchange of contracts and this is a good reason to instruct a surveyor early in the house buying process.

In the event that you withdraw from the sale then the cost of the survey is a small price to pay when compared to any unexpected expenditure you would have had if you hadn’t commissioned a survey.

 

buying and selling a house

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House viewing tips: things to consider when viewing a house

Many people enjoy viewing a house and picturing life in a new home.  But don’t make the mistake of arriving for a viewing thinking that this is the place for you.  Have an open mind.  Don’t just focus on the good points, consider the downsides too.  It is a good idea to:

1. View the house more than once and at different times of the day. In addition to viewing the property internally, drive past on different days of the week to get a feel for the area.  There may be certain times of the day or days of the week when traffic is busier, and this may not be obvious from a single viewing.

2. When viewing a house, take someone with you.  It’s worth having another opinion on the property.  There may be things you hadn’t spotted yourself.

3. After viewing a house, take a walk.  Walking gives a different view of the area.  Check out neighbouring properties to see whether they are well maintained.  You may even meet some of your prospective new neighbours.  Look out for any neighbouring land use or businesses which may affect the property.

4. When viewing ahouse, imagine what it will be like at other times of the year and in different weather conditions. For instance, a house on a north facing slope may have plenty of sun in the summer but may spend weeks in the shade in the winter. A house in an exposed position might take the brunt of the weather during a storm.  A house on a steep hill may be difficult to access during icy weather.

5. Don’t just view one property, even if you think the first property is perfect for your needs.  Viewing other properties may reinforce your decision to make an offer on a particular house, but similarly it may open your eyes to others which are more suitable.

6. Ask the vendor if you can take photographs.  Sometimes you might remember the positive features, but photos may remind you of other aspects which may easily be forgotten.

7. If you are buying a property to let, see “Buying a buy to let property”.

Above all, don’t rush into making a decision.  Don’t be pressured by the estate agent or anyone else even if there are other potential buyers on the scene.  Buying the wrong property will be an expensive mistake.  Make sure you have considered all important issues and be fully aware what you are taking on before exchange of contracts.  If you are unsure about the condition of the house or want further information on any defects then instruct a surveyor.

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