What to do after a bad building survey? The short answer
If your survey reveals significant defects, you have three main options: renegotiate the purchase price to cover the cost of repairs, ask the seller to fix the issues before exchange of contracts, or walk away from the purchase entirely. The right choice depends on the severity of the defects and your budget.
1. Don't Panic — Read the Whole Report
It is very common for an RICS Level 2 or Level 3 Building Survey to include 'Condition Rating 3' (red) alerts. Surveyors are legally obligated to highlight any issue that requires urgent attention or further investigation.
Take a breath and read the report thoroughly. A red rating for an old consumer unit (fuse box) is a standard finding in older homes and is relatively cheap to upgrade. A red rating for active subsidence, however, is a major red flag.
2. Get Quotes for the Necessary Work
Before you make any decisions, you need to know the financial impact of the defects. Send the relevant sections of your survey report to local contractors (e.g., roofers, damp specialists, or structural engineers) to get written quotes for the repairs.
Having written quotes gives you concrete evidence to present to the seller or estate agent when renegotiating.
3. Renegotiate the Purchase Price
This is the most common outcome of a 'bad' survey. If the roof needs £10,000 of repairs, it is entirely reasonable to ask for the purchase price to be reduced by that amount.
Estate agents are used to this process. Present the quotes to the agent and explain that your offer was based on the property being in good condition. If the seller refuses to negotiate, you must decide if you can afford the repairs on top of your deposit and moving costs.
4. Ask the Seller to Fix It
Alternatively, you can ask the seller to complete the repairs before you exchange contracts. If you choose this route, insist that the work is done by a qualified professional and ask for the receipts and guarantees before you proceed.
5. Know When to Walk Away
Sometimes, a property is simply a money pit. If the survey reveals severe structural movement, extensive dry rot, or non-compliant alterations that the local council could enforce action against, it may be best to walk away.
Remember, the cost of the survey has just saved you from a catastrophic financial mistake.