Yes — you can sometimes agree a price reduction (or financial allowance) instead of having the snags rectified. This happens most often when you’re buying a new-build or a property that’s recently been refurbished by a developer, and there are snags that are:
- likely to take time to fix,
- difficult to coordinate before completion,
- repeatedly “attempted” but not properly resolved, or
- not critical to safety/water-tightness but still unacceptable at the agreed price.
However, it’s important to approach this carefully. A discount can be a sensible solution — but it can also create risks if you accept money in place of repairs and the issues turn out to be bigger than expected, or if the arrangement isn’t documented properly.
Below is a detailed guide to when it makes sense, how to negotiate it, how it should be documented, and what to watch out for.
1) When agreeing a discount is a sensible option
A sales discount (or allowance) can work well when:
A) The snags are real, but non-urgent
Examples:
- widespread paint and plaster finishing defects
- minor tiling alignment issues
- doors needing adjustment
- cosmetic damage to finishes
- incomplete trimming, caulking, touch-ups
These can be annoying, but you may prefer money off and to instruct your own trades on your schedule.
B) The contractor/developer cannot realistically fix everything before completion
If deadlines are tight, and you don’t want repeated visits while you’re living there, a discount can be an efficient alternative.
C) You’ve lost confidence in the contractor’s remedial work
If:
- fixes are rushed,
- items are marked “completed” but aren’t improved,
- workmanship is consistently poor,
…it can be more effective to negotiate money off and use a contractor you trust.
D) There’s a coordination problem across trades
Some snags require multiple trades (e.g., plumber → joiner → decorator). If that’s proving slow, a financial settlement can simplify things.
2) When a discount is not a good substitute for rectification
There are situations where you should be cautious about accepting money instead of repairs:
A) Anything involving water ingress or damp risk
Examples:
- failed sealing to showers/baths
- gutter leaks and poor rainwater discharge
- external gaps around openings/penetrations
- paving falls sending water toward the building
These are “small” defects that can become expensive damage. If you accept a discount and delay repairs, you may inherit a bigger problem.
B) Safety or security defects
Examples:
- defective locks and doors/windows that don’t secure
- loose balustrades/handrails
- trip hazards due to poor finishing
These should generally be corrected, not priced out.
C) Items that are expensive or uncertain to remedy
If you don’t yet know the full extent (for example, a persistent leak, suspected drainage issues, or repeated cracking), settling for a discount without proper investigation can leave you under-compensated.
3) The key difference: price reduction vs allowance vs retention
Developers/contractors may use different “money instead of repairs” approaches. They are not all the same.
Option 1: Price reduction (discount on the sale price)
- reduces the headline purchase price
- affects mortgage and legal documentation
- must be disclosed properly to your lender and solicitor
Option 2: Financial allowance / credit
- can be treated as an incentive or compensation
- also needs documenting and may need lender disclosure
- sometimes easier to structure than altering the sale price late in the process
Option 3: Retention (money held back until works are done)
- less common in developer contracts, but sometimes negotiated privately
- keeps pressure on the contractor to return
- often one of the safest options if the defects are important and you want them fixed properly
Your solicitor should help ensure the chosen method fits your contract and lender requirements.
4) How to negotiate a discount properly (so it’s fair and defensible)
If you want a discount instead of snagging works, aim to negotiate based on evidence and cost, not frustration.
Step 1: Get a professional snagging list (or at least a structured list)
Your list should include:
- numbered items
- location
- defect description
- photos
- priority classification (urgent / important / cosmetic)
This keeps the conversation factual.
Step 2: Identify which snags you’re proposing to “cash settle”
Be specific:
- “We will accept a discount in lieu of rectification for items 12–49 (cosmetic finishes).”
- “Items 1–11 (water-tightness/security) must be rectified before completion.”
Developers are more likely to agree if you separate critical defects from finish-level snags.
Step 3: Get realistic costings
Ideally obtain:
- at least 1–2 quotes (or a cost schedule) for the remedial works you’re taking on
- include making good, redecorations, access costs, and VAT
Then add a sensible contingency. Cosmetic “touch-ups” can balloon when you have to redecorate whole walls for consistency.
Step 4: Make a clear proposal
For example:
- “Based on the attached snagging list and quotes, we propose a £X reduction/allowance in lieu of rectifying the listed items.”
A clear number supported by evidence gets faster answers than “we want something off.”
5) How it must be documented (to protect you)
This part is crucial.
If you agree a discount/allowance, ensure you have written clarity on:
A) Exactly which snags are included
List the items by number/location so there’s no ambiguity later.
B) Whether the contractor is released from responsibility for those items
You don’t want the contractor later claiming:
- “You accepted money, so we’re not responsible for anything related.”
The agreement should be precise about what is settled.
C) The timing and mechanism
- price change reflected in contract documentation, or
- allowance paid/credited in an agreed way
D) Warranties / guarantees
Clarify whether settling snags financially affects:
- warranties,
- defects periods,
- or your ability to raise future issues.
Be careful: you should not inadvertently sign away rights for unrelated defects.
E) Mortgage lender disclosure
Any price change or incentive should be run through your conveyancer so you stay compliant with lender requirements.
6) Risks to understand before you accept money instead of repairs
Risk 1: You may underestimate cost and disruption
A discount needs to cover:
- labour, materials, access, redecorations
- the inconvenience of arranging trades
- the risk of rework if you need consistent finishes
If you accept a small sum and later discover the work is bigger, you carry the shortfall.
Risk 2: Some defects are symptoms of deeper issues
For example:
- repeated cracking may reflect movement or poor substrate prep
- leaks can be intermittent and hard to trace
- poor sealing may have already allowed moisture behind finishes
If there’s uncertainty, investigate before settling.
Risk 3: You lose the “free fix” route
Once you accept money in lieu, you usually take ownership of the problem. That’s fine—if the discount truly compensates you.
7) A sensible “hybrid” approach that often works best
Many buyers get the best result by mixing both approaches:
Contractor fixes critical items
- water-tightness defects
- security/safety issues
- functional failures (locks, windows, leaks)
Discount/allowance for cosmetic snags
- paint, minor chips, finishing quality issues
- small alignment imperfections that you’d rather tidy up later
This balances safety and performance with convenience and control.
The takeaway
Yes, you can agree a sales discount instead of snagging works — and it can be a smart solution when defects are mainly cosmetic, time is short, or you’ve lost confidence in the contractor’s remedial work. But it’s essential to:
- separate urgent defects from cosmetic snags
- base the discount on realistic cost evidence
- document exactly what’s settled and what isn’t
- involve your conveyancer so lender/contract requirements are met
Done properly, it can be a clean, practical way to move forward.
Want help working out whether a discount is the right move (and what’s fair)?
Email mail@howorth.uk or call 07794 400 212. If you share your snagging list (or the top items), your stage (pre-exchange / exchanged / completion pending / post-completion), and whether the defects are cosmetic or performance-related, we can help you decide whether to push for rectification, negotiate a realistic allowance, or use a hybrid approach that protects you and keeps the purchase moving.