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Tinav, Home Buyer in Dana Point, CA

If property is sold "As Is" and the home inspection reveals more than

Asked by Tinav, Dana Point, CA Fri May 11, 2012

what we thought was wrong it is normal to go back to the seller to ask for some price concession? Relator is stating they will not entertain any negotiation (standard sale) and they would relist the house. We are still in the 17 day period. It's just more than we expected. We knew the roof and driveway need to be replaced but leaky toilets, spickets, broken water pipe, weep screed needing to be cleared by at the very least two inches, drainage problems, stove, broken slider, broken front window. The list goes on. Is is out of line to ask for a price concession of $10 to $15 K to cover or maybe at least 5 to 10? Should get the appraisal by Monday. Any input, thoughts would be welcome. Thank you.

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Anna Brocco’s answer
Your agent can best advise therefore consider a consultation; was the property priced to reflect any necessary repairs; you can askong for concessions, or simply walk away if you are not comfortable with your agreed purchase price and the repairs at hand...
1 vote Thank Flag Link Sat May 12, 2012
BEST ANSWER
You can always ask for $5-10K and see what the seller says. In general it is better to ask than to wonder. A home is a huge purchase and you need to know you got the right deal for you. If the seller says no, you can still close at the contracted price. Asking for cash back during the inspection period does not have to cancel the contract. That is a separate form.

It is harder to get a price reduction than to get some cash back at closing to cover "non-recurring closing costs". If you do ask, you might just request cash back at closing. A new price requires a new contract and is more difficult.

Many sellers say "AS IS" but when faced with losing a buyer who can close escrow they change their minds and decide to work with the buyer. Of course, some feel like they are already selling at rock bottom price and are willing to risk trying to find another buyer.

Did you get the property at a great price already? If you did and they say no to your request, you might want to close escrow rather than start the search and negotiation phase over again.

Good luck!
1 vote Thank Flag Link Sat May 12, 2012
Hi, followup question. If we do ask for a credit what are the sellers options? Yes or No basically right? Just to be clear they cannot terminate the contract if we ask for the credit? If they say no, we proceed as if we never asked right? We are getting quotes for everything right now and just want to understand the process.

Thank you.
Flag Thu May 17, 2012
You can ask for a request for repair and/or give them the option credit you through escrow. It will be up to the seller if they want to agree, counter or reject your request. At that point you can cancel if your not happy. Whatever you do don't remove your contingencies until an agreement is made.
1 vote Thank Flag Link Sat May 12, 2012
We went back to the house and looked it over. The location is wonderful, the house is the ugly duckling but we asked for $7500 concession and got it!!! We are so happy and now we close escrow is just a couple of days. As Joan has stated it is always better to ask than to wonder. It was priced good but not great for the amount of work that needs to be done. Thank you everyone for your input!
0 votes Thank Flag Link Thu May 24, 2012
I went through this with Fannie when I bought my house in January. I did manage to get them down 4% from ask, but it was VERY hard to do and the listing broker had to be willing to be your advocate (not your agent, the listing agent). I had an amazing real estate agent who was like a rabid coyote and wouldn't stop which I am certain helped. You have to ask yourself how much you really want this house cause as I thought about it I had two options: Walk away and they relist and I then had to wait 30 days to re-bid and watch someone else buy it, or bite the bullet and just buy it. I ended up buying it, remodeling it, and now I have tremendous equity and love the house. If you really want the house, GO FOR IT. If you don't want the house, then wait for another one. Sounds to me like it is all cheap cosmetic. I would find a good contractor, get him in the house TODAY, and have him give you a price quote ASAP. Tell the listing agent the goal, and then ask for a few days to do it. That is what I did. My agent had 5 contractors there bidding in less then 24 hours. DO THIS NOW.
0 votes Thank Flag Link Thu May 24, 2012
"As is" properties do not offer any concessions from the seller. It's good that you are still within the 17 day period so you can back out of the transaction if you are not wanting the expense of this property. However, you may be able to ask the seller for concessions, just in case. At this point in the game, the seller might not want to go through the hassle of putting the home back on the market and may be willing to accommodate you. Just make sure you act quickly so you do not go beyond the 17 day period.

If I can be of any assistance to you, please feel free to contact me.

Roberta Lisciandro, Broker
DRE #01304345
Anchor Pacific Real Estate
(949) 456-1056
anchorpacific@ymail.com
0 votes Thank Flag Link Thu May 24, 2012
Tinav,

Your Realtor may be relaying what the listing agent has told him or her - but you can always go back and ask for concessions or go your separate ways. It is up to you and your agent to talk about what you should ask for (if any) and to communicate that to the seller and listing agent.

Was it priced low for the condition...?

Felix
0 votes Thank Flag Link Sat May 19, 2012
Tinav,
I suggest you "look before you leap"
Your question sounds like you are almost quoting from the usual minor things that Home Inspectors put in their reports.
Would everything you mention actually cost more than a thousand or two to repair? Doesn't sound like it to me!
The market has gone into a fairly extreme "lock-down" because of lack of available properties to meet the surging demand.
Just accepting the "extra" repairs may be your best economic move if you ask for REASONABLE relief from the seller and it is refused.
You may find, in the short run, at least, that the cost of the fairly minor repairs you list is a pittance, compared to what it costs to replace the home with another (or maybe not, since I don't know all the details).
In any case, you do not jeopardize your purchase by asking for repairs or a credit in escrow.
So, it is worthwhile to formally ask (Request for Repairs form). However, sellers don't even need to respond, much less do anything beyond smoke detectors and water heater strapping (even if they DON'T specify "as-is").
And, it is wise to consider the alternatives in the marketplace BEFORE you cancel or fail to timely remove contingencies.
It's a "money thing", not a legal thing... what is your best FINANCIAL (not emotional) move?
Naturally, since I don't practice law, you may want to gum things up further by consulting an attorney :+)
So, in conclusion, my advice is to "look at the big picture", rather than trying to enforce a non-existent right! :+)
Terry
0 votes Thank Flag Link Sat May 12, 2012
You fail to mention if the Offer Price allows for the expense of the repairs:
Usually, an As-Is LISTING PRICE is lower due to the repairs needed.
If you are looking at the price as a perfect, repaired house, then you are not going to get both.
0 votes Thank Flag Link Sat May 12, 2012
Hi Tinav,
At this point you have 3 options. 1. Ask for concessions in writing. 2. Cancel escrow and find another property. 3. Pay the price in your current contract. The reason you do inspections are to uncover any defects not readily seen. It is not uncommon for buyers to walk away from a property after inspections. It all depends on what you are comfortable doing.
Good luck,
0 votes Thank Flag Link Sat May 12, 2012
Tinav,

You can ask for anything but that doesn't mean it will happen........

But with a standard "AS IS" purchase agreement the seller in not bound to make any repairs. In the event the identified repairs exceed the specified contract amount, you should be able to exit the contract without penalty.

The fact that this is a"regular" sale and not a short sale or foreclosure is not a factor.

You are likely faced with a choice or so very creative negotiations.

Good luck,

Bill
0 votes Thank Flag Link Sat May 12, 2012
Hi Tinav, as long as you are still in your 17 days and have not released your contingencies you have the right to cancel. As far as asking for connsessions, that has to be done in the original purchase agreement. The seller does not have to offer any.
0 votes Thank Flag Link Fri May 11, 2012
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