Renogiating After Property Inspection
I was wondering what is typical regarding renegotiating the price of a property during the due-diligence phase based on the property inspection report. Obviously, for large problems (roof repair, foundation, etc) prices get renegotiate or the buyer simply walks away, but how about for smaller things?
For example, if I had agreed to purchase a duplex for $200k and the inspection report comes back with roughly mostly cosmetic things that are broken that would take $4k to fix. Would it be appropriate/typical to request a reduction in price (say to $196k) to compensate for this? Are attempts at doing this usually successful and do people have general guidelines what would be appropriate in this situation?
How about if the numbers were changed to $2k (1% of purchase price) or $10k (5% of purchase price)?
There is no universal answer to your question. Each transaction is different. It is common for sellers to ask for a repair credit based upon an inspection report, or the seller may just make the repairs as a condition of settlement without any price reduction.
Everything is negotiable. You just have to ask for what you want. Maybe you will get it.
for 4K or or 2% of the price, do you want to risk pissing off the selling.
Not a Lawyer, but as an agent I have seen both buyers and sellers use the inspection addendum to torpedo a contract.
Jim
http://www.la.bbb.org/businessreport.aspx?companyid=100031708
There are many people who can help you in this area but you need to pay them.
ahenry, see also the thread at http://www.thecreativeinvestor.com/ViewTopic65765-37.html
Always question who is behind the web site. Some of the "promotions" out there seem to be legit if you can sift through the "puffing" of their programs. Always be weary... and good luck.
Looks like this site is geared for loan brokers. Their web site says "All types of lenders are represented; -sub-prime, hard money, niche, alt-A, and commercial,..." sub-prime? alt-A?? Are originators for these loans still out there?