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How to renegotiate price as a result of buyer inspection?

When you are in the contract period and before the buyer inspection deadline, what are ways to renegotiate the price or ask sellers to fix items in order to factor for buyer inspection estimates to fix items discovered to be repaired. Do the renegotiated items need to be NEW items that wasn't disclosed or can it include repair items seller already disclosed? Appreciate any help I can get.



  
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September 23 2010 - Ingleside
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Purplestuff,
Anything is possible and you cannot get what you do not ask for.  However, I always advise my clients to factor the Seller's disclosed items into the offering price.  You can certainly request credits for new items that were not previously disclosed, but to ask for credits for something already disclosed seems like playing dirty pool to me.  It doesn't encourage good will between the Buyer and Seller and you may end up shooting yourself in the foot.  Also, it is much easier to request that a Seller simply credit you for an item rather than completing a repair.  With the short closing times we have in San Francisco, it is difficult to arrange appointments with contractors, get written bids and then schedule to the work to be done within a few weeks.  Good luck to you.
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September 23 2010
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Thanks for the all the advice and feedback -- very helpful. My agent (buyer) agreed with some of my additional inspection findings that weren't disclosed and will report back to the selling agent.

If seller agrees, what is the most feasible option to apply the credit on my behalf WITHOUT getting the lenders concerned due to the additional repairs. I heard lenders are getting very strict (in the bay area at least) on lending when there is known repair work that they weren't aware of on the initial contract.

Please advise, again I appreciate everyone's feedback.  
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September 28 2010

The contract can be negotiable prior to the inspection contingency deadline for both undisclosed and disclosed items. While it can't hurt to ask for items to be repaired or price negotiations, I would advise that all disclosed items be taken into consideration in the initial offer. Any additional items discovered through inspections can be negotiated between the buyer and seller upon inspection.

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September 24 2010
Everything is negotiable, but the custom in San Francisco is that items disclosed ahead of time are not. So if your inspections turn up issues or problems that the Seller did not make clear in their disclosure package then you can ask for credits or repairs for those new items.
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September 23 2010
I would get estimates for the repairs and if the seller isn't willing to fix them, ask for a lower acceptance price (deducting for the repair charges). If they want to sell the house, they will be up for renegotiating. I dealt with this and at the end of the day, the seller wanted to sell and they made the price reduction, a whopping, $4000.
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September 23 2010
 I agree with Nancy that it is not OK to ask for repairs of disclosed items. Each contract is different - you need to pay attention to the wording of the inspection clause to determine what you can ask the seller to repair. In NJ we can ask for repair of "defects" - and sometimes there is a grey area. Cosmetic repairs - even cracked windows - are not "defects" and the seller is not required to make these repairs. We cannot ask the seller to replace an old system - so I like to do the inspections before the contract is binding. That way -the buyer can walk away if they find all the major systems are in need of replacement.
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September 23 2010
Hi purplestuff, work with your realtor to come up with a Request for Repairs, and include whatever inspection reports you got and send it over to the seller with the request for repairs, or credits in your case -- whichever is preferable to you.  

It can be for both new items discovered by the inspections, as well as the old items -- as long as it's all on paper.  If the seller agrees, or at least counters, you may have been able to negotiate a price reduction!


Best of luck,

Caroline
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September 23 2010
First of all, do your inspection early and don't wait till the last minute.

My clients typically re-negotiate the contract after inspections when the dificiencies are more severe than they originally thought.  IF you do inspections and it reveals more deficiencies and you do not have a clear cost for, ask for an extension so that you can bring in a specific expert  to give you an accurate price for repairs.

Yes, the re-negotiations can be on both new items and already disclosed items.

I would make a list of deficiencies or give the seller a copy of the inspection report with the terms you are willing to accept...it could be an any of the following or a combination:

1.  You could ask for all or part of the repairs to be completed before closing by a licensed professional.

2. 
You could ask for a reduction in the contract price.

3.  You could ask for your closing costs to be paid by seller.

4.  You could ask for a home warranty.

Once you have reached an agreement. get it in writing... be clear and specific so there is a mutual understanding of what needs to happen.

Eve in Orlando

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September 23 2010
Get estimates of the repairs you would like done. Make a priority list and ask your agent to present the addendum to the contract to negotiate the repairs you want done before closing, or negotiate a repair allowance to either reduce the sales price or closing costs.
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September 23 2010
 
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