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Recently, I put my house on the market, and I received multiple offers. Almost all of the offers were “as-is” offers with a few offering to close the gap in appraisal if the house should appraise low.
I accepted what I considered the strongest offer, in terms of type of financing, amount being put down, inspection window, appraisal gap coverage, et. The buyers offered an “as-is” sale, but with the right to an inspection and an exit option (which almost every offer provided). They completed their inspection earlier this week, and then on the last day of the inspection window they asked to renegotiate the sales price based on the inspection report. I haven’t seen the inspection report, but the couple of items of greatest concern that my realtor mentioned it’s pretty standard things that pop-up (it’s not a major foundation issue that cropped up, etc.). I offered to compromise and reduce the price to what my next highest offer was, as it’s only 1k. They have agreed to this.
However, I am curious how often it is for a buyer to put in the strongest offer and then try and try and renegotiate the price after the inspection? Even when they put in an “as-is” offer? I mean obviously in my buyers case it worked because they got a thousand dollars knocked off the price. But, I didn’t know if it was a common tactic?
It's also sometimes just the natural development of events. They put in the best offer, they're in the excitement of the moment, they are willing to bid up and say whatever they need to to win, and they might even say and believe they don't want to ask for anything, and then the excitement wanes, as it always does, they have the inspection, it's not the perfect hallmark card they thought it was, they have doubts about the price they bid and the repairs needed and ... they end up asking for a concession.
If you're willing to give the concession, it's usually of no value to try to assign ill will or dishonest motives to the other side without evidence. It erodes good will and gets in the way. Really, most of the time, motives aren't any deeper than they're trying to get a house for the best price in the same way that you are trying to sell for the best price. Nothing wrong with that.
You could have just told them no. They would have either agreed, or terminated. You blinked first.
I absolutely could have. While I’m a little irritated about the request, I’m okay with the outcome, especially as the contracted price is still well above asking and what I was hoping for.
However, I didn’t know if this was being used pretty commonly as a tactic for renegotiation? Go in with what you think is the best offer and then use the inspection window as a way to renegotiate.
This happened to me. They offered 30k over asking. I have already had a accepted offer on a condo. The inspection showed a ton of stuff wrong with much of it being nit picky. Originally they only wanted things taken off the price which were safety issues and added up to 7k. A week before closing they wanted a credit for everything which was 13k. I could have said no but would have lost my condo as the owner said he would put it back on the market. These people are wealthy and buying a 400k house so their son doesn’t have to live in the college dorm.
It's also sometimes just the natural development of events. They put in the best offer, they're in the excitement of the moment, they are willing to bid up and say whatever they need to to win, and they might even say and believe they don't want to ask for anything, and then the excitement wanes, as it always does, they have the inspection, it's not the perfect hallmark card they thought it was, they have doubts about the price they bid and the repairs needed and ... they end up asking for a concession.
If you're willing to give the concession, it's usually of no value to try to assign ill will or dishonest motives to the other side without evidence. It erodes good will and gets in the way. Really, most of the time, motives aren't any deeper than they're trying to get a house for the best price in the same way that you are trying to sell for the best price. Nothing wrong with that.
That makes a ton of sense. And, I do think, especially for first time home buyers, that an inspection report can be scary, and we are talking about a lot of money for most people.
This happened to me. They offered 30k over asking. I have already had a accepted offer on a condo. The inspection showed a ton of stuff wrong with much of it being nit picky. Originally they only wanted things taken off the price which were safety issues and added up to 7k. A week before closing they wanted a credit for everything which was 13k. I could have said no but would have lost my condo as the owner said he would put it back on the market. These people are wealthy and buying a 400k house so their son doesn’t have to live in the college dorm.
I’ve been blunt with my realtor that if my house does not appraise and they want to renegotiate the short fall that will be a no-go. As that was one of the major reasons I selected their offer. The house I’ve bought I like, but I don’t love it enough that I’d renegotiate the price again. I’d just take mine off the market, and reassess my plans.
But, to be fair to the buyers they only requested a couple thousand dollars discount, and I just reduced the price to the next highest offer I received. If they had come back asking for more I would have told them to send me the cancellation paperwork.
That makes a ton of sense. And, I do think, especially for first time home buyers, that an inspection report can be scary, and we are talking about a lot of money for most people.
Yep... this is the truth, and probably the most positive outlook to end up with, for everyone.
I'm in one of the hottest markets in the country right now. Appraisals have not kept up with sold prices and are almost always coming in low. Buyers are having to bring $200K+ to closing to cover the difference.
Sellers here are making any concessions. And they don't have to when there were 24 other offers on their house.
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