Hey all.
Finally in my 40s I’m fortunate enough (with a lot of family help & a mortgage) to be buying a home. It’s end-of-terrace; just spoke to the surveyor today after he’s done most of the inspection and he’s found a lot of structural problems.
Feeling a bit defeated, it’s taken so long to get to this stage of having an offer accepted, and being close to exchanging contracts. It’s an old house so while I wasn’t expecting it to be fault-free, I’m quite disappointed and I guess looking for some advice / reassurance.
Not got the report in text yet but he mentioned potential subsidence; rising damp; cracked walls; problem with the chimney stack; window frames; and others. Said it’s all stuff that can be fixed, but potentially expensive. My plan is to wait for the text report next week, then contact the estate agent and attempt to negotiate a price reduction in line with the cost of the repairs, which imo will run into at least £15k. Considering it’s on the market for £85k, and the owner wouldn’t even put the electric on for viewing because she didn’t want to pay £1 a day standing charge, I’m anticipating some pushback.
But, should I even bother? Is this ‘sunk cost fallacy’ at play? I certainly feel like if they’re not prepared to negotiate re repairs then I have to walk away as I could buy a well-maintained property round here for the total cost of around £100k!
Any advice much appreciated.
owner wouldn’t even put the electric on for viewing because she didn’t want to pay £1 a day standing charge
I bet the real reason is that turning on the power would reveal more trouble.
I’m often told I can be negative with regards to the intentions of others but this definitely crossed my mind. I’ve reiterated many times the importance of the electrics being sorted because I write music, I’ll have ~£15k of equipment in one room and do not want my new home burning down or my kit damaged due to faulty wiring.
Interestingly / worryingly, the electrical cert they handed over at the start of this process hadn’t even been signed (though the company appears to exist).
Not sure how the laws work in the UK for informing people about potential problems, but you might be doing someone else a solid if you forward the inspection report to the current owner and their agent with clear documentation proving you did even if you just plan on walking away at this point (which I would also suggest because even all the things the inspection found might only be scratching the surface).
Where I am, if you aren’t aware of a problem (and aren’t completely negligent to be unaware), you aren’t guilty of fraud for not declaring it. But if you do know about it and neglect to inform a buyer…
This is a really good idea. My dad and I were saying yesterday it’s such a waste of resources for each buyer to have to get a survey done, especially where the property has hidden issues. Would be great to have some sort of national register, where the first person to pay for a survey can then give access to subsequent buyers for a nominal fee.
I’m definitely going to give the estate agent a politely-worded email stating clearly that the seller is being at best neglectful and at worst, deceptive. I’m sure they won’t be happy either about having their time wasted. I’ll also pass a copy of the survey on.
Once you have the written report in hand get a quote from the best remodeling firm around. Have them check over the report and give you an estimate based on how much it will cost for everything.
Use that report and estimate as your bargaining position. Be prepared to walk away, as it already sounds like this lady isn’t taking very good care of the place.
I’d just recommend not settling for something in poor condition just because you feel beat down or overwhelmed by the grind.
You will be filled with constant regret if you wind up buying some dilapidated property simply because you’re tired of the back and forth because once you sign the papers, you’re stuck with it. The process isn’t enjoyable, but try not to let that get to you.
Not sure what the exact condition of house is nor what contractors charge for work in your area, but in my area of the US, $15k isn’t going to get you very far on most projects. One of my coworkers just spent $27k to have an HVAC system installed and $40k for new windows. I think he got fleeced, but even halving those prices, you’re still being given a rough quote equivalent to these somewhat basic tasks for what sounds like serious structural work.
Ok, I have to ask- what the hell kind of place do they live where HVAC costs $27k and windows cost $40k? Were these new installations where there had never been ductwork or windows before? Because those are way, WAY out of line for replacements in a typical single family home. By about an order of magnitude.
But to your larger point, yes, structural work can very easily (and quickly) hit 6 digits. I wouldn’t accept it unless the terms are that the original owner makes the repairs first.
Yes the HVAC was a full install as he had an oil burning furnace with radiant floor heating prior to this. They installed an AC/furnace and ducting. The windows were through one of those sleazy companies like Renewal by Anderson and like I said I think he got fleeced on both jobs.
If you aren’t comfortable with managing repairs, walk away. The repairs will likely take months and can be very disruptive.
It sounds like there are some very pricey repairs, chimneys are generally expensive and require specialized masons. Replacing windows can be expensive, but if the house doesn’t have double pane windows, the insulation benefits can offset the cost.
The biggest worry is the moisture issues, rising damp and bad window frames could mean significant water damage is discovered as part of repairs. Cracked walls can also be a big deal depending on the root cause, foundation issues are really bad.
I do have somewhere within walking distance where I can stay while works are being completed. Windows I’m not so much worried about, as estate agent said she had similar issues and just did the windows one at a time as budget allowed. The damp / potential subsidence though is my biggest concern. It’s likely the provider would pull the mortgage offer based on that, and there’s no way I’d get building insurance with issues like this.
If you really like the location you might consider trying to negotiate a vastly reduced price for the land and do a demo and rebuild.
Am not sure I’d be able to do that, it’s attached to another house; planning permissions I imagine would be a nightmare; it’s likely they’ll balk at any reductions in price let alone a massive reduction; and iirc the terms of my mortgage are specifically for a house purchase not a house build.
Dream idea though, I was looking at land the other day thinking how cool it would be to be able to just buy some land and build a house on it. Potentially cheaper than buying, just a huge project to manage.
Walk away. Seriously.
