When your buyer’s house valuation report comes in with a figure lower than that which you have negotiated this does not necessarily spell the end of your sale. Find out about surveyors.
Selling a home can be quite an expensive process, with all the expenses you will incur to effect repairs and replacements of what is old and broken.
You can spend a fortune fixing the obvious cracks, chirps, breakages and worn out places of your home and the buyer’s valuation or the structural surveyor may still come back with more bad news about the state of your home.
When you are the buyer, this will be disappointing as your mortgage lender may decide that they no longer want to lend on the property.
Again this does not spell the end to your move.
Alternative To Explore With Your Buyer
As an interested buyer you do not have to walk away after a bad survey. One alternative is finding out how much repairs to the structural fault will cost. It may be something that can be easily fixed, without incurring high costs for the repairs. If you a cash buyer you can of course do what you like as you’re not dependent on a mortgage (this is explained in more detail here).
Secondly, you can renegotiate with the seller (after having obtained a quotation on how much the repairs will cost) by asking the seller to reduce their price by the same amount. This way you can still have your dream home. For more advice, click here.
In most instances, the most common problems include structural movement, timber and damp problems; rot- wet and dry, woodworm, defective wiring and an outdated or defective heating system. The seller can replace some of these, although this will mean more expenses for him.
It is also important to consider that an evaluation is exactly that – an evaluation, it enables the lender to make a lending decision. The buyer can still make his or her own decision about whether he or she really wants the house.
Open Negotiation Is the Key
In most instances, what it takes to solve the problem is the coming together of the seller and the buyer and their working together in tackling the problems that would have arisen from the valuation.
The buyer’s decision to want to buy the house was not on the basis of the valuation, but rather on his or her general impression of the house, and this often is not changed overnight by the valuation report obtained from the buyer’s lender. The seller too can exercise some reasonableness and accommodate the new findings and adjust the price realistically. This way all parties will win and the problem will be resolved.
However, if you’re in the property market and are looking for a private lender to fund your project, a surveyor will have to come on site and take a report. They will go through all your figures and discuss an end product with you to see how suitable you are.
To see the development loan process, visit this website.