Yes, it's silly to potentially lose a house you like over a $500 repair.

Good luck with your new home purchase!

Tricia

In your situation, I'd wouldn't negotiate over a $500 repair (actually, I'd never negotiate a $500 repair).

Congratulations on your new home. :-)

I agree, I wouldn't negotiate a $500 repair. Why chance losing a home you like over a minor amount of money/repairs?

Asking for a $500 repair is not placing you in a position to lose the house, it is asking the seller to repair deficiencies. The seller has the option to say yes, no or anything in between, and you have the option to do the same.
I'd ask for repairs, and if I want the house, I'd make the decision when I receive an answer from the seller.

Berniek is absolutely correct. The seller can't just unilaterally cancel the contract when presented with a proposed amendment. Although as others have said as well, I wouldn't try to negotiate a $500 repair; however, you would not be jeopardizing the contract. The seller can say yes or no to the repairs. If you don't like his answer then you can cancel the contract based on the inspection contingency. The seller does not have that option.

Same general question, so I'm going to hijack...

We have a contract on a house. Our original offer was $15K below asking (which was a price drop, just one month in), with a contingency that we sell our home by December 31 and $5K toward closing costs. They didn't negotiate a thing, just signed it. So of course I'm wishing I'd offered them less, lol, but we really thought the contingency would be an issue.

We told them we'd be inspecting now, because I'm not going to the trouble of marketing my home only to discover some major flaw in that one; I don't need to move. Inspection is done, several areas of wood rot and a few other minor things, nothing unexpected for a house of this age, and certainly nothing that would keep me from doing this deal, even if I pay for/handle all the repairs. Realtor says maybe $2K in fixes.

Because the owners have moved across country and clearly seem to want to be done with this obligation, I'd like to use the inspection as entree to, essentially, renegotiate price. I want to offer them $10K less, we'll deal with the fixes AND remove the contingency and close by mid-October. That, of course, is the real bargaining chip. We've decided we do want to move first and the financing is not a problem and in the works.

My realtor is nervous about making such a big drop, but I'm offering them an actual closing in less than a month rather than a possible closing after the first of the year.

I figure the worst they can say is no, we negotiate the inspection/repairs, and I remove the contingency anyway. Thoughts?

taup, inspection/wood rot or not, I'd approach them again with this "deal." Just have your realtor say, "Buyers are willing to drop all the contingencies and close in October, in exchange for another $10K off. Oh, BTW, the inspection found a bunch of wood rot that will prolly take $2K to fix."

For them to elimiate another 3 mortgage payments, they may pounce on it!

Julie

Absent specific documented experience and training that proves otherwise, please be aware that a realtor estimate on repair is hardly a figure to put in the bank....the same with home inspectors...which is why many states...NJ is one...requires HI's to report deficiencies WITHOUT providing method and cost of repair.

Why? To protect the buyer.

Because...drum roll please...HI's and REA's by virtue of their licenses are not experienced estimators or contractors.

That said, all too often, such estimates in reality can wind up being double, triple or more of actual costs.

I canÂt begin to tell of all of the stories I have heard from HIÂsÂwho, when explaining a defect to a buyer, have to grit their teeth when the REA starts piping in about how much the repair will cost, along with an explanation of what must be done, which is almost always entirely incorrect.

Some may ask how the HI knows the REA's repair method is incorrect...that is simply becuse defect recognition is the HI's speciality (not a speciality of the REA) whether the HI hears it or sees it...and if someone is describing a repair method that will simply result in another defect...they know it...but it still does qualify them to quote cost.

If one wants the best and most realistic idea on method and cost of repair, spend a little extra, and hire a contractor who specializes in estimating repair projects.

IMO...although that figure in the end will more than likely also be higher...it will be far more realistic than any provided by an HI...or the REA. There is a reason for that old adageÂ"Jack of all trades, master of none".

Bear in mind as well, that the REA wants the deal to close...and in most if not all cases, chances are the REA is not going to be the one who has to cough up the extra 2, 4 or 6K that may be needed once all is said and done.

Forewarned is forearmed.

logic, you are absolutely right; thank you for pointing that out.

Fortunately, I'm not going on his evaluation alone; he and I both have our "guys" estimating. I pointed out that as many "small" areas as there are, it will look like a patchwork quilt if the trim isn't painted once it's done. I'm having many of the same areas fixed on my house pre-listing, so I do have an idea of what it'll run to fix with and can just send Ed over to deal with the new house once he's done here... much easier for the seller, no difficulty to me.

My inlaws house is going through the same thing with "new" rotted areas discovered, demanding sellers and real estate agents having to kick in to get the deal done. I don't want to be on either side of that!

Julie, thanks for the advice. I'm not sure what my agent is worried about by asking for "too much". If they say no, I'm no worse off than I am now.

I most certainly would try to negotiate a $500 repair.

If I was the SELLER and you asked for $500 for the repair, I would say YES as fast as possible. Sellers sit on pins and needles waiting for the inspection results. They worry about large issue found and thousands of dollars being discussed. Most would love to have $500 in issues and go forward.

Is it silly to negotiate say a 500 dollar repair of something with a seller??

Does this tie in to your other post about the HVAC? If so, where did you get the dollar amount? I don't remember you poting that you called an HVAC person.

If it was me, I would call the HVAC, then negotiate with a repair estimate.

Get an allowance before having the seller do a repair.
A repair will be done by the cheapest company the seller can find.
Read you inspection clause carefully.
The one in my area would allow the seller to kill the sale if they wanted to.

If someone doesn't write in the contract that they have the right to come back and negotiate after the inspection--then there would be no negotiations. As either a buyer or seller I wouldn't want to lose a deal over that small amount.

We always write in the repairs up to xxx dollars will be considered by one or the other, depending upon the market.

I wouldn't bother with it.

Gloria

The seller can't just unilaterally cancel the contract when presented with a proposed amendment.

Maybe I misinterpted the purchase agreement I signed. It says something to the effect that buyer notifies seller of major defect in "inpsection response form". Buyer can 1. waive any other inspections and accept property. 2. accept property in condition as noted in inspection. 3. accept property providing seller corrects any "Major Defect" found in inspection. 4. accept property providing seller compensates buyer for any major defects.
5. Decline property because of major defects.

It goes on to say, and this is where I intrept this as seller's escape clause...

Marking 3 or 4 on inspection response forms constitutes a modification of purchase agreement and seller is free to reject the proposed Modification and accept other offers. Seller will send along a mutual release of purchase agreement to buyer and returning the earnest money. Purchase agreement will become null and void.

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Looking back that has been in every purchase agreement I have ever signed over the years in Indiana.

Please clarify.

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Obviously your inspection clause is not a stand alone contract contingency and is very unforgiving in the negotiating process.
However, this invites verbal negotiations by the buyer before putting it in writing, to preclude the seller from invoking #3&4.
The other option is to cross out in the contract the sellers option to reject the request by buyer.

What happens when buyer asks for 3 or 4 and refuses to sign the earnest money release because of the sellers bad faith to negotiate with buyer?

Each state contract is different, yours is not one of the more progressive ones it seems (to try a less adversary position and bringing the buyer and seller to a satisfactory agreement about inspection items, such as an alternative to the options 3 & 4 given in the contract).