Does anyone here have any idea of whether or when a bank will negotiate a reduced price on an "as is" property after an inspection? I know that we can back out if it flunks inspection but unless there is a really serious structural problem I'd rather get price concessions on any big ticket items.
Would it make a difference if I insisted that our "Buyer's Broker" (interestingly, the disclosure is for a Buyer's Broker and not a Co-Seller's Broker) actually provide the Seller's Broker with a copy of the inspection? Since, in principle, once they are on notice of any material defects affecting the value they would need to disclose them to any potential Buyers.
I still haven't quite figured out why the Bank's real estate broker partnered with a Buyer's Broker for the purposes of showing the property but this is one potential reason why, so that the Seller is not on constructive notice once the Buyer provides any Co-Seller's Broker with specific information on the condition of the property.
Regarding the specific house in question, the bank has accepted our offer on a property that just had a $15,000 price adjustment. The original asking price was about 80% of assessed value. The price reduction brought it down to 75%. I don't know how long it has been on the market with this bank. I believe the current owner bought it as a foreclosure for about 92% of the current assessed value.
We have been looking in this town --in particular this school district-- for a long time and the asking price was a pretty good deal unless there is a serious structural problem.
Keep in mind that in this town properties in good condition typically sell for more than the assessed value. However, this property is not quite in what anyone would consider move in condition. DH has worked in the trades and his educated guess is that it will take about $40K to make it liveable and to take care of the stuff that is easier to do while the house is empty (i.e.: refinish the floors and re-do some of the walls).
Our offer was $6K over the current asking price. The realtor advised me that there were a lot of offers on the property and that someone outbid us; so we increased our offer by $10K ($16K over asking). At that price the house is still $75K under the assessed value. However, after paying the 20% down that doesn't leave a lot of room for doing the work DH insists needs to be done. For instance, initially he thought we could salvage the kitchen cabinets but after a closer look it probably doesn't make sense to spend any time --much less the money-- fixing the rotted area under the sink or re-finishing them if you are only going to replace them anyway within the next couple of years.
Another potential big ticket item is a potential structural issue with the rear corner of the attached garage (it seems to be lifting somehow). Unfortunately we couldn't get in the garage to try and figure out what caused the problem.
Anyhow, the basic question is how to try and get the bank to negotiate based on findings in the inspection when, in theory, they can simply go to the next highest offer. Does anyone have any recommended strategies for persuading the bank that any problems are serious enough to be an issue for any buyer?
TIA,
~Cath
Would it make a difference if I insisted that our "Buyer's Broker" (interestingly, the disclosure is for a Buyer's Broker and not a Co-Seller's Broker) actually provide the Seller's Broker with a copy of the inspection? Since, in principle, once they are on notice of any material defects affecting the value they would need to disclose them to any potential Buyers.
I still haven't quite figured out why the Bank's real estate broker partnered with a Buyer's Broker for the purposes of showing the property but this is one potential reason why, so that the Seller is not on constructive notice once the Buyer provides any Co-Seller's Broker with specific information on the condition of the property.
Regarding the specific house in question, the bank has accepted our offer on a property that just had a $15,000 price adjustment. The original asking price was about 80% of assessed value. The price reduction brought it down to 75%. I don't know how long it has been on the market with this bank. I believe the current owner bought it as a foreclosure for about 92% of the current assessed value.
We have been looking in this town --in particular this school district-- for a long time and the asking price was a pretty good deal unless there is a serious structural problem.
Keep in mind that in this town properties in good condition typically sell for more than the assessed value. However, this property is not quite in what anyone would consider move in condition. DH has worked in the trades and his educated guess is that it will take about $40K to make it liveable and to take care of the stuff that is easier to do while the house is empty (i.e.: refinish the floors and re-do some of the walls).
Our offer was $6K over the current asking price. The realtor advised me that there were a lot of offers on the property and that someone outbid us; so we increased our offer by $10K ($16K over asking). At that price the house is still $75K under the assessed value. However, after paying the 20% down that doesn't leave a lot of room for doing the work DH insists needs to be done. For instance, initially he thought we could salvage the kitchen cabinets but after a closer look it probably doesn't make sense to spend any time --much less the money-- fixing the rotted area under the sink or re-finishing them if you are only going to replace them anyway within the next couple of years.
Another potential big ticket item is a potential structural issue with the rear corner of the attached garage (it seems to be lifting somehow). Unfortunately we couldn't get in the garage to try and figure out what caused the problem.
Anyhow, the basic question is how to try and get the bank to negotiate based on findings in the inspection when, in theory, they can simply go to the next highest offer. Does anyone have any recommended strategies for persuading the bank that any problems are serious enough to be an issue for any buyer?
TIA,
~Cath
and her FHA loan required it.
