Negotiating After a Survey: Using Your Homebuyer Report to Your Advantage

You’ve found your dream home, had an offer accepted, and commissioned a RICS Home Survey. Now the report is in your hands, and it reveals some unexpected issues. This isn’t necessarily a setback; in fact, it’s an opportunity. A detailed survey report can be your most powerful tool in renegotiating the purchase price or terms, potentially saving you thousands of pounds and ensuring you pay a fair price for the property’s true condition.

The Survey as Your Negotiation Tool

Identifying Leverage Points

A RICS Home Survey, whether a Level 2 HomeBuyer Survey or a Level 3 Building Survey, provides an objective assessment of the property’s condition. It highlights defects, potential risks, and necessary repairs. Each identified issue, especially those requiring significant expenditure or posing safety concerns, becomes a potential leverage point in your negotiations. The more detailed and costly the problems, the stronger your position.

Quantifying Defects

The survey report doesn’t just list problems; it often provides context on their severity and urgency, sometimes even including indicative cost estimates for repairs (especially with a Level 3 survey). This quantification of defects is crucial. Instead of vague concerns, you can present the seller with concrete figures for necessary works, making your request for a price reduction or repairs justifiable and harder to dismiss.

Strengthening Your Position

Without a survey, your negotiating power is limited to market comparisons. With a professional RICS report, you have expert evidence to back your claims. This transforms your position from a hopeful buyer to an informed negotiator, demonstrating that you are aware of the property’s true condition and the financial implications of its defects.

Strategies for Effective Renegotiation

Price Reduction

This is often the most straightforward approach. Calculate the estimated cost of the necessary repairs identified in the survey. You can then propose a reduction in the purchase price equivalent to these costs, or a significant portion of them. For example, if the survey reveals £5,000 worth of urgent roof repairs, you might ask for £5,000 off the agreed price.

Repair Requests

Alternatively, you can request that the seller undertakes the necessary repairs before the exchange of contracts. This can be particularly appealing to sellers who want a smooth sale and may have the resources or contacts to get the work done efficiently. Be specific about the repairs required and agree on a timeline for their completion. It’s advisable to have a clause in the contract stating that the repairs must be completed to a satisfactory standard, ideally inspected by your surveyor.

Withdrawal Considerations

While not the desired outcome, the survey report also provides a legitimate reason to withdraw from the purchase if the problems are too severe, too costly, or if the seller is unwilling to negotiate fairly. This protects you from inheriting a property that could become a financial burden or a source of ongoing stress. It’s better to walk away from a problematic purchase than to regret it for years to come.

Maximising Your Survey’s Value

Professional Guidance

After receiving your survey report, it’s highly recommended to discuss the findings with your RICS Chartered Surveyor. They can explain complex terminology, clarify the severity of issues, and advise on the most effective negotiation strategy based on their experience and market knowledge. Their insights can be invaluable in formulating your approach.

Clear Communication

When approaching the seller or their agent, ensure your communication is clear, concise, and backed by the survey report. Provide specific details of the defects and the proposed solutions (price reduction or repairs). Maintain a professional and calm demeanour, focusing on the facts presented in the report.

Protecting Your Investment

The ultimate goal of negotiating after a survey is to protect your investment. By leveraging the detailed insights from your RICS Home Survey, you can ensure that you are purchasing a property at a fair price, with a full understanding of its condition and any future financial commitments. This proactive approach transforms potential problems into manageable outcomes.

Don’t let a survey report gather dust. Use it as your strategic advantage. To ensure you have the best possible foundation for negotiation, connect with a qualified RICS Chartered Surveyor through RICS Survey Experts today. Their expertise will empower you to secure the best deal for your future home.

Author: Lanre