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You can call but I don't see a buyer paying an inspection without an accepted contact. Why should they be? You can negotiate the limits of inspection repair as part of your contract. I can see it it could be done for bank owned property that would let one to present offer for an as-is sale and yours isn't, is it?
Good luck!
Now I am confused. We are seeking a contract. Then we pay 1/2 the appraisal so that there is little risk to him if it comes in low (it shouldn't though). THEN he does the inspections.
But I thought that after inspections, he could ask for repairs based on results and that those costs are ours in addition to any signed contract. We could refuse, of course, but to do so could nullify the contract. Right?
So we need to "hold in abeyance" enough to cover any potential additional costs if we wish to meet our net income target from the sale.
Now I am confused. We are seeking a contract. Then we pay 1/2 the appraisal so that there is little risk to him if it comes in low (it shouldn't though). THEN he does the inspections.
But I thought that after inspections, he could ask for repairs based on results and that those costs are ours in addition to any signed contract. We could refuse, of course, but to do so could nullify the contract. Right?
So we need to "hold in abeyance" enough to cover any potential additional costs if we wish to meet our net income target from the sale.
You are basically right. You have a unique situation where you are doing the appraisal first (be sure their lender will agree to that - many want inspection first in case it shows an issue that would affect the loan, or cause the buyer to back out).
And yes, he could ask for repairs after inspection. But as noted, you can refuse. What's the difference? If you are at your bottom line then refuse if repairs exceed it. You should negotiate your best deal up front.
BTW, if you refuse, it does not automatically nullify contract. It's up the the buyer to cancel or not at that point.
You are basically right. You have a unique situation where you are doing the appraisal first (be sure their lender will agree to that - many want inspection first in case it shows an issue that would affect the loan, or cause the buyer to back out).
And yes, he could ask for repairs after inspection. But as noted, you can refuse. What's the difference? If you are at your bottom line then refuse if repairs exceed it. You should negotiate your best deal up front.
BTW, if you refuse, it does not automatically nullify contract. It's up the the buyer to cancel or not at that point.
Thanks. The reason for the appraisal first is that he lost a house and all the inspection fees and appraisal cost when the appraisal came in below his offer and the seller refused to lower the price. So he is a bit skittish about the appraisal. That is why we agreed to share the risk before inspections. Rather generous of us, I thought. So his offers have been insulting. Especially since the best comp was $367K for a virtually identical home (except it has a smaller lot and a pool that we don't have). So our $359K is exceedingly fair.
That is why I'll call him at $358 and let the chips fall where they may. If he wants the house, then he has to be reasonable, too.
Thanks. The reason for the appraisal first is that he lost a house and all the inspection fees and appraisal cost when the appraisal came in below his offer and the seller refused to lower the price. So he is a bit skittish about the appraisal. That is why we agreed to share the risk before inspections. Rather generous of us, I thought. So his offers have been insulting. Especially since the best comp was $367K for a virtually identical home (except it has a smaller lot and a pool that we don't have). So our $359K is exceedingly fair.
That is why I'll call him at $358 and let the chips fall where they may. If he wants the house, then he has to be reasonable, too.
I agree with your position on this offer. My other comments were more generic about dealing with inspection issues.
Thanks. The reason for the appraisal first is that he lost a house and all the inspection fees and appraisal cost when the appraisal came in below his offer and the seller refused to lower the price. So he is a bit skittish about the appraisal. That is why we agreed to share the risk before inspections. Rather generous of us, I thought. So his offers have been insulting. Especially since the best comp was $367K for a virtually identical home (except it has a smaller lot and a pool that we don't have). So our $359K is exceedingly fair.
That is why I'll call him at $358 and let the chips fall where they may. If he wants the house, then he has to be reasonable, too.
Guy-
You sound like you are being more than fair. I hope this works out in your favor!
I'll just also point out in this market, the first offer is also often the best offer. Keep that in mind...IMO a few more thousand now is better than tens of thousands later.
There's plenty of threads in this forum from buyers who looked at a house, made what they felt was a fair offer, were denied, only to have the sellers' agent call 3-12 months later letting them know the sellers would be willing to sell at the buyers' original offer.
You sound like you are being more than fair. I hope this works out in your favor!
I'll just also point out in this market, the first offer is also often the best offer. Keep that in mind...IMO a few more thousand now is better than tens of thousands later.
There's plenty of threads in this forum from buyers who looked at a house, made what they felt was a fair offer, were denied, only to have the sellers' agent call 3-12 months later letting them know the sellers would be willing to sell at the buyers' original offer.
Bless you! That does a great deal to relieve some of my anxiety over this. I am very grateful for your input.
I am NOT a realtor but wanted to give you a little hope as far as
the back and forth counters.if they really want your house they will give a little more . it does seem like they "should" come up but times are different.
does not seem fair that you have to "pay" because they had another deal fall thru.
when we bought our current house we countered back and forth 8-10 times
over a 4-5 week period.
we are seeing the "other" side of the coin in as far as
buyers are now calling the shots. it is payback time and sellers are "paying the price" by having to bend over backwards, paving the driveway with gold, coat the house in honey,
whatever works to apease the buyers.
such are the times.
3433 E Contessa Cir, Mesa AZ 85213
4 ba | 2,719 sqft | Single-Family Home
$370,303
Our home is 2711 sqft, does not have a pool (this one does), but has a lot more than twice the size, more trees, citrus, is custom in a custom neighborhood, etc.
The average listing price for similar homes for sale is $385,500 and the average sales price for similar recently sold homes is $358,067.
I'm beginning to think the $358 was too low. But we'll take it if he will. His $331,500 is insulting.
Last edited by GuyFriendly; 12-04-2009 at 02:26 PM..
3433 E Contessa Cir, Mesa AZ 85213
4 ba | 2,719 sqft | Single-Family Home
$370,303
...
Sorry Guy, but that's not a good comp. This house was taken back by the bank at the foreclosure auction on 10/23/09. The "sale" price is actually the outstanding mortgage balance. Has nothing to do with market value. Actual value is probably much lower.
Sorry Guy, but that's not a good comp. This house was taken back by the bank at the foreclosure auction on 10/23/09. The "sale" price is actually the outstanding mortgage balance. Has nothing to do with market value. Actual value is probably much lower.
Well, according to what I find, the average listing price for similar homes for sale is $385,500 and the average sales price for similar recently sold homes is $358,067.
As for the "sale" above, it is listed as sold on County records, so it should be just as good a comp as any other.
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We are seeking a contract. Then we pay 1/2 the appraisal so that there is little risk to him if it comes in low (it shouldn't though). THEN he does the inspections. 
