buying process - informal tender?
Discussion
a number of weeks ago we had our offer accepted on a property that was advertised as 'informal tender' - it was listed with a closing date and i know the offers weren't opened until the date had passed.
we've now had valuation / survey(s) done and hit a small snag.
the valuer has given two amounts, one being the amount we offered but requiring some works, and the other being current value without works, these being 5k apart.
i've currently got quotes for 4.4k of work - mainly to a kitchen extension which appears to have a not very good or failed damp course installation as well as wall ties and some work to the height of paths.
is anyone familure with informal tender? i'm well aware i can walk away at this point, but am i likely to be able to renegotiate the price of this house at this stage as i would if this was a typical sale?
as always, thanks in advance
Chris
we've now had valuation / survey(s) done and hit a small snag.
the valuer has given two amounts, one being the amount we offered but requiring some works, and the other being current value without works, these being 5k apart.
i've currently got quotes for 4.4k of work - mainly to a kitchen extension which appears to have a not very good or failed damp course installation as well as wall ties and some work to the height of paths.
is anyone familure with informal tender? i'm well aware i can walk away at this point, but am i likely to be able to renegotiate the price of this house at this stage as i would if this was a typical sale?
as always, thanks in advance
Chris
The items that the survey has shown up may be useful for negotiation - the price you came up with for the informal tender may have assumed that these issues did not exist. I would discuss this frankly with them and perhaps look for a further £2500 reduction; if this was not forthcoming then to consider whether perhaps I was still willing to go ahead. They in turn may decide to look at other offers that they had and consider going to those if they were close to yours.
Having said that the valuation is not that far off what you have offered; if the house is only £50K then of course it represents a significant percentage difference, and may mess up borrowing ratios etc but if it was £400K then £5K is not worth losing a purchase that you want over.
Having said that the valuation is not that far off what you have offered; if the house is only £50K then of course it represents a significant percentage difference, and may mess up borrowing ratios etc but if it was £400K then £5K is not worth losing a purchase that you want over.
Cheers for the info, not having bought via informal tender before i didnt want to look like a plank when i walk back in to renegotiate.
biggest problem is the bank are wanting to make the works a condition of mortgage and want to withold the 5k for up to six months for the work to be done.
The property is being sold due to the previous owner having died. as far as i'm aware although there is a will, the sale is being dealt with by a solicitor and i dont think there is a benificiary as a person, i was made aware most of the proceeds are going to chaity. ordinarily i'd attempt to negotiate some of the works to be done as a condition of sale, but i doubt this is possible as who would pay?
biggest problem is the bank are wanting to make the works a condition of mortgage and want to withold the 5k for up to six months for the work to be done.
The property is being sold due to the previous owner having died. as far as i'm aware although there is a will, the sale is being dealt with by a solicitor and i dont think there is a benificiary as a person, i was made aware most of the proceeds are going to chaity. ordinarily i'd attempt to negotiate some of the works to be done as a condition of sale, but i doubt this is possible as who would pay?
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