How to negotiate price when your survey finds problems?

Waiting for your survey results can be one of the most stressful times when buying a house, worrying about what might be found wrong with your potential property purchase. As experienced structural engineers, the team at DSA view the process more positively, knowing that a property survey is the best way to discover potential problems, what rectification work is likely to be required and therefore, how much negotiation power this gives you.

Cracks in the walls, signs of structural movement, roof defects or signs of damp are all causes for concern and might make you reconsider your purchase, but DSA believe that such problems do not necessarily mean you should walk away. Instead, the valuable information revealed by a structural survey enables you to move forward with all the facts you need to make an informed decision as well as the option to re-negotiate the purchase price before exchanging contracts.

So, we’ve pulled together this short guide of what you need to know if your property survey has found problems, and more importantly, how to confidently approach negotiations.

Why property surveys are so important

A property’s defects might not be visible to the eye or may be more serious than first thought. This is why a house buyer’s survey is so important, to fully assess any defects, maintenance issues and potential structural concerns that may not be obvious during a viewing. To move forward with a purchase is to be forearmed with all information relating to the work and cost of potential repairs.

And because the survey happens before you are legally committed to buying it, it puts you in control of how the sale moves forward – or not. Here’s some examples of the most common issues identified in property surveys:

• Structural movement or subsidence
• Cracks in walls or foundations
• Roof defects
• Damp, timber decay or woodworm
• Drainage problems
• Structural alterations without adequate support
• Defective retaining walls or boundary structures

Finding any of these problems out in advance of purchasing means you can avoid unexpected repair costs after you’ve moved in.

Not every problem means a price reduction

Unfortunately, you can’t automatically assume that the cost of every problem can be offset against your agreed sale price. This is because sometimes the asking price already reflects what the survey has confirmed, for example, if it’s an older property it will have more maintenance requirements than a modern property, so cosmetic cracks, ageing roofs or outdated fixtures would probably be considered normal for the property’s age.

However, if the survey uncovers significant structural defects or issues that have not already been discussed before you made your offer, then you might have valid reason to renegotiate the agreed purchase price to cover the likely repair costs. Put simply, it’s about making the difference between routine maintenance and problems that materially affect the property’s value.

When can you negotiate after a survey?

Once you’ve received your survey results which include significant problems or defects you have not already been made aware of, you can start re-negotiating the agreed sale price. DSA view the following defects as valid reasons to reopen negotiations:

• Structural movement or subsidence
• Significant cracking
• Foundation problems
• Roof defects requiring major repairs
• Unsafe structural alterations
• High repair costs that weren’t previously known

Rest assured, negotiating price is a common occurrence in the house-buying process and DSA will ensure your survey gives you all the professional evidence you need to support your position.

The importance of a structural engineer’s assessment before negotiating

Not all types of property survey are carried out by a structural engineer, so to approach your negotiation with confidence and evidence you will need to qualify the problems found. Before discussing the purchase price with the seller, a DSA Chartered Structural Engineer will determine whether cracks or movement are historic, ongoing or simply cosmetic. At the same time, we’ll give you an idea of the remedial works required, how the problems are likely to have happened and how they might have affected the property’s overall structural integrity.

Rather than making assumptions or ‘what ifs’, a structural inspection completed by an independent professional will significantly strengthen your negotiating position. The problems may be serious and are best explained by an expert who can articulate the seriousness of any structural issues along with the likely repair costs.

How to negotiate a property purchase price

If a DSA Chartered Structural Engineer identifies genuine structural concerns, then negotiations can proceed calmly and professionally. Here’s our recommended steps:

• 1. Understand the survey findings
  Read the report carefully so you are familiar with the content and ask us to explain anything that’s not clear. Distinguishing between cosmetic defects and issues that require further investigation or repair will demonstrate you understand what you are referring to.
• 2. Gather supporting evidence
  Commissioning a structural engineering assessment may be a cost but can give you your best chance of a successful price reduction. Professional evidence and any relevant remedial work quotes gives a much stronger basis for negotiating with the seller.
• 3. Discuss the findings with your estate agent or solicitor
  Your estate agent and solicitor should also be kept in the loop, so you should share the relevant sections of the survey with them and explain why you believe a price adjustment is justified. Keeping the conversation factual and focused on the likely repair costs makes it easier for everyone to correlate the price reduction you are seeking.
• 4. Be realistic
  As we said earlier, minor defects and maintenance issues may have already been allowed for in the agreed sale price, so most sellers won’t entertain a price reduction if this is the case. Stay focused on the problems that represent significant structural concerns and attract genuine repair costs.

When to walk away from a property purchase

If you can’t reach a mutually satisfactory price with the seller then you must decide if the property is a worthwhile investment to you. It’s perfectly understandable to reconsider a purchase because of problems that you feel are serious that you don’t want the cost or effort of rectifying, such as structural movement and severe subsidence.

It’s always disappointing to walk away from a property purchase, but you can take comfort in knowing that because the issues were discovered before exchanging contracts you have saved yourself thousands of pounds in repair costs, not to mention hassle.

Frequently Asked Questions

Here’s our summary of the most common questions about negotiating a property’s price after survey:

Can you negotiate house price after a survey?

Yes. If your property survey has identified problems that you weren’t previously made aware of or that weren’t obvious on viewing, then you can ask the seller to renegotiate the purchase price. While the seller doesn’t have to agree to a new price, many do reconsider when faced with evidence of significant repair costs or structural issues – ultimately both parties want the sale to complete in a mutually satisfactory way.

How much should I reduce my offer after a property survey?

Your negotiation price should be proportionate to the cost of fixing the problems discovered in the survey. Advice and quotes from building contractors and a DSA Chartered Structural Engineer will serve as credible evidence to support your negotiations.

Should I get a structural engineer after a property survey?

Yes, if your Level 2 Survey or Level 3 Survey recommends further investigation into cracks, structural movement, subsidence or other concerns. A specialist assessment will confirm if any issues are cosmetic or structural so that you can decide if you want to progress with a renegotiation or simply withdraw your offer.

What if the survey finds serious structural problems?

Most serious structural defects are fixable and don’t mean you have to walk away from the purchase. You may be pleasantly surprised how relatively easy repairs can be, although others can attract much higher costs making a reduced price more important. A DSA structural engineering assessment will provide a clearer understanding of the issues and the options available to you.

Survey to satisfaction

The overarching message is that even if you find problems in your property survey it doesn’t mean you’ve found the wrong property, simply that you now know what you need to make an informed decision and if appropriate, negotiate a fair purchase price.

If you do need to renegotiate based on structural concerns, a DSA Chartered Structural Engineer can provide valuable reassurance and strengthen your negotiating position.

Here at DSA, we’ve vast experience in providing structural surveys, structural inspections and structural reports for residential and commercial properties. Our reports are accurate and clear so that you can confidently understand structural defects, and associated repair requirements before committing to a purchase or renegotiating the agreed sale price. Whether you’re purchasing your first home, moving up the property ladder or investing in real estate, we’re here to provide clear, professional advice you can trust.