Renegotiating after B&P inpection and ramificaitons

I've just gotten back the building and pest inspection from a property that I've got under contract and it came back less than rosy.
The gutters need replacing, most of the timber on the back veranda needs replacing, the hot water system needs fixing/replacing, etc.

All in all, I reckon there's maybe $20k+ of work to be done to get it all back up to scratch. Now, the contract price is only $255k, so $20k is a fair percentage.

My question is, how do I renegotiate and try and lower the price? Do I send an email to the REA and tell him that due to the problems I'm now only offering $235k? Do I ask for it to be fixed?
If I do get a discount, how will that affect my home loan? Will it need to be sent off to the bank again with a lower price? Could this cause any problems with the bank? Would I be better off asking for $x of Bunnings vouchers, or would that need to go back to the bank as well?

Finally, I'm not entirely sure what to do from here. The contract date was the 19th of July with a 14 day satisfactory inspection clause. That means I have all day tomorrow to renegotiate, right?
 
Hi,

If you can't get negotiations done in time you can ask for an extension to the 14 days b&p due to needing more time to work out costs etc. this would need to be done through your solicitor.

If your negotiating for a discount I would do it through the real estate not your solicitor from my experience solicitors are harder to deal with and cost you money at the same time.

I would email a copy to the agent and explain that you have hit extra costs that you didn't expect and are looking for a $x reduction. From my experience sometimes they (owners) say no (especially if they feel you bought it cheap) sometimes they will throw you something (50%) but never have I been able to get the full amount on multiple things like you are talking about,
But I always start at the full amount an negotiate from there.

As for the loan they will just vary the amount it happens regularly enough and has never caused me any problems.

End of day decide what you are happy with and you can walk away if they won't come to your figure. What is it worth to you? Did you get a good buy?
 
The repairs are probably required as the house is cheaper and not in perfect condition. As a seller they would probably already be aware of this and have price accordingly.

If I was the seller I may negotiate a few thousand but no where near $20k. With new gutters and decking possibly the house would have presented better for sale and they could have got a better offer themselves.

I am not saying you should give up but just providing an alternate view the seller may have.
 
You have the option to rescind the contract on the grounds that the B & P was unsatisfactory to you.

Whether you can then negotiate a price decrease is up to the vendor and probably is relevant if he took these repairs into consideration when fixing the price he accepted.

Marg
 
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