It’s in a homebuyer’s best interest to have a survey carried out – not because there’s a lack of trust but because surveys can uncover issues that you might not have even known about. If your home survey has flagged up some problems which might affect the home’s value, here’s how you can negotiate fairly and effectively.
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Can my buyer negotiate after the offer is accepted?
When you accept an offer on your home, it will be listed as ‘Sold Subject to Contract’ (SSTC) which essentially means that the conveyancing process can begin, but nothing is set in stone until the exchange of contracts. During this time, the sale is not yet legally binding, and therefore your buyer is free to negotiate the home’s sale price.
However, you are not obligated to agree on a lower offer if you do not want to.
Related: Selling when your property has known issues
What if my buyer’s survey flags up issues with the home?
It’s a surveyor’s job to assess the home from top-to-bottom, so most surveys will flag up a few errors, sometimes minor. The problem arises when more large-scale defects are found that are linked to the property’s structural integrity. The cost of rectifying these issues might exceed the buyer’s budget, which is why renegotiation is often the next step.
Your buyer can either proceed with the agreed offer price, renegotiate to a lower price, or withdraw from the sale completely.
Keep in mind that this won’t be an easy decision for your buyer. Their mortgage lender could also decide that the property is not worth the agreed price and refuse to loan the agreed amount in light of the survey’s findings. In this case, the options are either renegotiation or walking away from the sale.
Related: How do down valuations affect your house sale?
How to renegotiate after survey issues
If your buyer’s survey flags up some issues, it’s not necessarily the end of the road for your sale, but you’ll need to carefully consider your next steps. Negotiating is extremely common in the property market, but it’s easy to get it wrong if you act without guidance or planning.
Review the survey report
It’s essential to review the survey report carefully, ideally with the guidance of your estate agent. Understanding the nature and severity of the issues raised will empower you during negotiations.
Assess the impact on the sale price
Not every issue uncovered in a survey warrants a price reduction. Minor issues like cosmetic defects or routine maintenance might not significantly affect the property’s value. However, major structural problems or safety concerns such as damp or subsidence can justify a renegotiation. Consider obtaining quotes for repairs to accurately assess the realistic financial impact.
Be open to reasonable requests
Buyers may request a reduction in the sale price or ask you to undertake repairs before completion. Evaluate these requests objectively. Your agent will be able to offer advice and guidance on this. In some cases, agreeing to minor concessions can prevent the sale from collapsing and demonstrate your commitment to a fair transaction.
Negotiate with confidence
Armed with knowledge from the survey report and a clear understanding of local market conditions, your estate agent can negotiate confidently on your behalf. Communication must be open and professional at this pivotal point in the sale, as this increases your chances of finding mutually agreeable solutions.
You should also be prepared to counteroffer if the buyer’s initial requests are unreasonable. Your estate agent will know when you’re positioned to do so.
Consider alternatives to price reduction
A bad survey report can be just as distressing (if not more) for the buyer. If you’re unwilling or unable to reduce the sale price, you might be able to explore alternative options. Offering a contribution towards repairs or providing a home warranty can be viable compromises. These options can help maintain goodwill and keep the sale moving forward.
Document agreements clearly
If you manage to come to an agreement with your buyer, make sure everything is documented in writing, either through an addendum to the sales contract or via email. Clear documentation reduces the risk of misunderstandings and provides a reference point for both parties.
Be flexible and patient
Selling a property involves navigating various challenges. Remember to stay calm, flexible and patient throughout the negotiation process to avoid making any rash decisions. Most house sales require some level of compromise from both sides to reach a successful outcome, so don’t panic if you find yourself having to reconsider some of your terms.
Need help selling your home? Contact your local Whitegates branch today
