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That is the way the contracts work in my state. However, the buyers of my house didn’t ask for any repairs, they asked to renegotiate the price.
Usually works the same either way. Buyers decide whether to ask for the actual repair, or (if it's an issue that will NOT hold up appraisal or closing) a price concession to do it later.
My family just lost a deal to buy a house, and apparently one of the deciding factors was the inspection language. Most passed on it; we wanted it, and were probably the highest offer, but still got rejected.
My conclusion: You need to do that with which you are comfortable. Many of the folks doing deals today are going to look back and realize that emotion got in the way. And not only because they overpaid by a bunch and will likely be upside down for many years to come.
Anecdotally, one of the houses which we were interested in, but passed on as it went "contingent" while we were evaluating, evidently sold to a buyer who insisted on an inspection. Well, well, the well and water did not pass inspection! Imagine if the buyers had bought that house with no inspection and now were stuck with a house with no usable water system? That sort of killer event could happen to anyone at any time.
Caveat Emptor. We are quite happy missing on deals where we don't have a chance to inspect the product before we sign the final papers. I wonder if people would do the same thing with a used car? Granny only drove it on Sundays; she's a beauty. Trust me. But yet they seem comfortable doing doing it on a purchase with value tens of times more than buying a car!
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?
if you don't ask, you don't get.
and there are claims made on many things, but what matters is what's written in the contract, and to some degree the agent on the other end.
It wasn’t a big deal for me, it just made me wonder how many buyers used the inspection phase as a way to renegotiate. While in this market the seller does have more power, once you get to the inspection phase the dynamics do shift somewhat, especially if something significant crops up on the inspection. For me, it was worth $1000 to not be inconvenienced by another inspection, and it was worth it not have another inspector find different things because different inspectors seem to find different things.
it would certainly vary by market, and even by agent. Anecdotally, I'd tell you in a "multiple offers, above 5" situation, especially if you have a backup, it doesn't happen often for nitpicky stuff where I am, nor does it happen in a widespread fashion nationally. Not in this market.
I think that's a reasonable amount to give. I have a rental house to sell in the next couple years in an extremely hot market, growing city w/good jobs. I'm going to budget $3,000 in to the price and keep it in my pocket, i'll give a buyer up to that amount off for any serious repair requests. If they want more than that amount, they can buy as is or I'll put it back on the rental market.
The $1k you paid is nuisance money. The buyer's agent will tout to the buyers how well they negotiated a discount and it was worth it to you to get rid of the house and not start with new buyers.
Not uncommon, but the hot market is why they only got $1k. In other times they would have asked for $5-10k.
This. I don’t think people purposely put in super high offers planning from the start to get money back after the inspection, but I know it’s common to ask for things after the inspection in general.
As someone else mentioned, I think also sometimes people get a bit of buyers remorse after realizing how much they’re paying particularly if the inspection isn’t perfect, so getting “something” back will usually make them feel a little better.
But yeah, $1k is nothing. My in-laws just got a place in November that they offered $15k over ask on, but were able to get $5k off after the inspection (which did have some not too insignificant issues).
Despite the hot market, if the deal falls through, you never know if the next person will ask for something as well. Of course it’s also possible for the seller just to say no and the buyers might have still continued with the purchase.
I thought that if a buyer made request for repairs and the seller refused, it was then up to the buyer if he wanted to continue with the deal or not. Meaning that the seller cannot cancel the contract if a buyer ask for repairs, it would be the buyers choices.
Depends on contract language. It's been a long time since I sold real estate through a very well known firm, but any change to a PA was a brand new offer. I see now that's not usually the case anymore.
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