A building survey is a crucial part of the housebuying process, and it’s something you‘ll organise after your offer is accepted. But if a survey reveals concerns that are going to be costly to put right, you may want to negotiate a house price reduction rather than walk away.
The offer you made when buying a house should have accounted for remedying any issues of which you were aware. But when the survey reveals the property is in need of work you didn’t know about, renegotiation can prevent you overpaying.
Reducing an offer after a survey is likely to require an evidence-based approach to be successful, though, and here we’ve put together the expert knowhow you need to do so.
1. Study the survey
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“When you receive your house survey, you’ll likely see a mix of minor and more significant issues, and it’s important to distinguish between expected wear and tear – things like ageing boilers or tired décor – and defects that could have a serious financial or structural impact,” explains property expert Andrew Boast, founder of SAM Conveyancing.
“Common issues surveys flag include damp, outdated electrics, roof wear and tear, or minor cracks in walls,” he explains. “In many cases, these are manageable and shouldn’t necessarily raise alarm bells or mean you should pull out of the purchase. However, more significant defects, like subsidence, major damp penetration, structural movement, or asbestos, can be extremely costly to resolve and are a valid reason to reassess your offer.
“Issues with drainage, pest infestations, or evidence of poor past renovations can also be problematic, particularly if they indicate deeper faults with the property,” he adds.
Andrew Boast
Andrew Boast is the CEO, executive director and co-founder of SAM Conveyancing, and has over 23 years of experience in the home and conveyancing market. Andrew is an accomplished expert in his field, guiding thousands of clients through the complex process of buying a home both personally and through his teams of expert solicitors, surveyors and mortgage advisers.
2. Assess if renegotiation of the price is reasonable
You’ll need to assess whether reducing your offer is a sensible strategy once you’ve digested what the survey says.
“A good rule of thumb is this: if an issue is unexpected, affects the structural integrity, or would cost thousands to put right, it’s reasonable to renegotiate,” Andrew Boast explains. “For example, if a survey flags subsidence, you could be looking at tens of thousands in repair costs. Likewise, damp might seem minor, but if it’s linked to a failing damp-proof course or structural problems, it could become a much bigger issue down the line.
“However, not every survey issue needs to be a dealbreaker,” he adds. “The key is to determine whether the issues uncovered were already factored into the asking price. If a property is advertised as a fixer-upper, then a survey highlighting an ageing boiler or tired décor isn’t cause for renegotiation. However, if the property was marketed as being in excellent condition, but the survey uncovers major defects that weren’t disclosed, then you have a strong case to request a price adjustment.”
Think house value when assessing. “Focus on whether the issues identified materially impact the value of the property and the cost of future repairs — a small crack in the plaster isn’t the same as evidence of structural movement,” says Andrew. “The most important step is to understand which problems are merely cosmetic and which could lead to significant financial costs later on.”
3. Speak to your surveyor
It’s well worthwhile talking to your surveyor about the report. “Some reports will flag problems but recommend further investigation to assess severity,” says Andrew Boast. “Having a conversation can clarify whether an issue is minor or if it requires immediate attention.
“A key question to ask is how serious the issue is and whether it requires urgent repair,” he continues. “If the problem is significant, find out whether it could impact the mortgage lender’s valuation of the property. If a survey identifies serious structural concerns, lenders may down-value the home or even refuse to lend until remedial work is carried out. In such cases, renegotiating the price isn’t just a preference — it may be necessary to keep the purchase viable.
“The surveyor can also provide insight into whether the issue is common for the type of property,” says Andrew. “Older homes naturally come with quirks, and not every flagged issue is a reason to panic. However, if the problem is unusual or particularly expensive to fix, it’s reasonable to expect an adjustment in the purchase price.”
4. Get further information
You are highly like to need evidence if you want to reduce your offer, so once you’ve spoken to the surveyor, arm yourself with further information as necessary.
“A second survey by another surveyor can lend weight to your case,” says property and construction expert at MyJobQuote Thomas Goodman. “By getting a second opinion and presenting it to the seller’s agent along with the first survey, the seller is more likely to accept the findings and consider renegotiating the price.”
Be aware that you might need additional investigations. “For some problems, such as damp or subsidence, a special report is a good idea and will give more details on the issue and the possible resolutions,” says Thomas. “In fact, the surveyor may suggest a specialist report for complex problems such as dry rot or structural movement.
“When you are considering lowering your offer, these reports demonstrate to the buyer that there is a real problem identified by specialists and they can help your case,” he advises.
Thomas Goodman
Thomas Goodman has worked as a property and construction expert for MyJobQuote for six years and has worked in the construction industry for more than 20 years. Thomas continues to work on building projects, while also providing expert construction and property advice to industry professionals and DIY enthusiasts.
(Image credit: Getty Images/tekinturkdogan)
5. Decide how much to reduce the offer
It’s vital to use your evidence when renegotiating. “Generally, buyers can negotiate a five to 10 per cent reduction after a survey highlights issues, but the actual figure will depend on the severity of the problems,” says Andrew Boast.
“Minor repairs costing a few thousand pounds may not warrant a significant adjustment, but if remedial work is extensive and could cost tens of thousands, a larger reduction is justified. In cases where the issues impact the property’s mortgageability – such as major structural defects – a price reduction may be essential to keeping the purchase viable.”
6. Contact the estate agent
If you want to reduce the offer, go back to the estate agent marketing the house. It can be preferable to visit the branch in person although that won’t always be feasible.
Andrew Boast recommends writing a letter that lists the defects and the estimated costs of remediation. “Give them the choice to remedy the issues or adjust the price by a specific amount to reflect the total costs (you may want to include a reasonable amount if you will have to live with disruptive construction works for a significant length of time),” he suggests.
You should also provide a date by which you expect a response, he says.
7. Be pragmatic
The seller of a home might refuse to reduce the price, of course. If so? “You should consider whether the cost of repairs still makes the purchase worthwhile or if it’s time to walk away,” says Andrew Boast.
“In some cases, particularly with significant defects, walking away from the purchase may be the most sensible option. While renegotiation is an important tool, it’s ultimately about ensuring the property remains a sound investment rather than simply securing a discount.”
With good evidence a house price reduction can be negotiable. “When making a best and final offer, make it clear this is your last offer and it expires on a specific deadline, and remind the seller that refusing your reasonable reduction will mean starting the process again with a new buyer, and will most likely halt at the same hurdle eight to 12 weeks later,” says Andrew Boast.
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