Home Buying in La Habra>Question Details

Anabelsa87, Home Buyer in La Habra, CA

Can you renegotiate your bidding price for a property after initial offer is accepted?

Asked by Anabelsa87, La Habra, CA Mon Jan 10, 2011

Still within contingency period of good faith deposit.

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Catherine's answer is the closest to being accurate. Of course you can renegotiate. The most common reason would be finding things wrong in a physical inspection during the contingency period - that's one of the reasons it exists. That scenario happens all the time.

Another typical reason is an appraisal that doesn't come in at the originally agreed value.

If you've determined that the value should have been lower, you are still free to renegotiate - and the seller is free to NOT negotiate.

Your option at that point is to either accept things as they were originally agreed to - or withdraw from the transaction. That is ALWAYS the buyer's right, up until the expiration of the contingency period.
Web Reference: http://BobPhillips.net
0 votes Thank Flag Link Mon Jan 10, 2011
Definately have to examine your desire to change the offer price. It sounds like you are under contract, though. If inspection revealed a problem or issue then perhaps you have a valid reason for wanting to renegotiate. If you are just feeling that you are under contract for too high of a price I suggest re-examining comparable sales and if you still feel that way then cancel the contract prior to contingencies expiring.
2 votes Thank Flag Link Fri Jan 14, 2011
You have made an offer that has been accepted, in order to change anything you will need a reason. Now since you are in the contingency period, you may have a legitimate reason to either cancel or request a price concession. Your agent should be able to help you through this process.

Best of luck to you.
1 vote Thank Flag Link Mon Jan 10, 2011
Yes, as long as you are still within your contingency period. To strengthen your request for a lower sales price, you should "back it up" by documentation such as an inspection report or appraisal report.

Best of luck,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic #01456982
0 votes Thank Flag Link Tue Dec 2, 2014
Can you renegotiate your bidding price for a property after initial offer is accepted?
Scenario # 2

I'm aware that if something comes up during the inspection or appraisal process, a buyer has a right to go back and ask for a lower price, or for certain items to be fixed.

However, I have the same question, but a different reason:
I am under contract to sell to people who need to sell another property first. They have finally gotten an offer, but it is much lower than what they wanted.
They are now asking ME to come down on MY price!!
I believe they priced their property too high, and it is not that appealing. This is not my problem. Is it acceptable that their agent even asked me if I would come down?
0 votes Thank Flag Link Sun Jul 13, 2014
Wow. I'm really surprised that there is not a consensus on what is the true answer. Especially with agents in California. Bob(below) summed it up best. I'm just sorry you have to look to this board to try to get this question answered. Where does your agent side on this?
Web Reference: http://www.ochometalk.com
0 votes Thank Flag Link Sun Jan 16, 2011
Hi Anabelsa,

Why do you want to? As Bob said in his response...

1) did you find a problem with the condition of the home?
2) did the appraisal come back low?
3) did you discover you have over paid?

Hopefully your agent ran comps and you are in a contract at a reasonable purchase price. Talk to your agent and see what you can work out. That's what you agent is for.

Good luck,

Karen
0 votes Thank Flag Link Wed Jan 12, 2011
Your buyers agent is the professional who can answer all your questions. Many questions need answers and virtual opinion not to your benefit.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Jan 11, 2011
Hi Anabel,
Are you saying that you want to negotiate the price or does the seller?

If you, the buyer, want to renegotiate, you'd only have grounds to do so if the appraisal comes in lower than the contract price or if you discover something physically wrong with the house that warrants the reduction. If the seller does not lower the price, your option is to walk away so long as you are still within the contingency period.

The seller does not have a right to renegotiate a price. However, I have seen banks try to raise prices on short sales. Each situation is different so it's impossible to give accurate advice.

I hope this helps. Please discuss this with your agent and he/she can give you the most accurate answer based on your specific situation.

Good luck and God bless!
Web Reference: http://www.aaronzapata.com
0 votes Thank Flag Link Tue Jan 11, 2011
You have 17 days to do your inspection of the property and all that's associated with it; schools, neighborhood noise, etc. If you discover something substantial, like an a/c unit that's inoperable or a leaking roof, you can ask for a credit or for repairs.
0 votes Thank Flag Link Tue Jan 11, 2011
I agree with Bob and Bill.

Keep in mind that you might put your deposit at risk (depending upon how your P&S is written) provided you opted to walk after the contingency period has expired if the seller refuses to accept your price adjustment, and the seller might be able to pursue damages against you too.

Also, keep in mind that adjusting the price isn't your only option for adding more value to the deal. Let's say that the property appraises for less than your offer price due to some immediate repairs discovered via the appraisal and/or inspection. It's possible that you could get the seller to extend the closing date, and make the repairs. Then you could work with your lender to order another appraisal (which now meets or exceeds your offer price).

Another option, for adding more value to the deal, is to renegotiate the terms. Again, let's say that the property appraises for less than your offer price, the suggested repairs are cosmetic (eg new paint, new carpet, and updated fixtures), and you don't plan to address those repairs immediately. You could ask the seller to sell the property with seller financing (if s/he wants to get that offer price), or you could ask the seller to buy down your interest rate for a period of time.

Additionally, keep in mind if you did win a bidding war to put that property under contract, that other buyers might be less picky and willing to pay more than your appraisal amount. In that case, a seller might tell you to "take it or leave it." So, although you can renegotiate, the seller also can opt to not negotiate (as Bob stated earlier).

Be negotiable and nimble, and don't overplay your hand.
0 votes Thank Flag Link Tue Jan 11, 2011
Absolutely....You can renegiotate right up to you signing the closing paperwork. Things change, where do you stand with your home inspections any issues? Did the title report come in clean? How about the apprasial if it came in low and you still want the house? How about the survey? Have your mortgage rates or terms changed? Any issues with the seller?

There are ton of reasons to renegoiate..Be creative but check with your attorney your are in a buyers market.

Bill Carey, Broker/Realtor
Cell 704-905-0740
Fax 866-343-5945
Bill.Carey@HendersonProperties.com l http://www.HendersonProperties.com

Henderson Properties
Charlotte's Premier Real Estate Company
0 votes Thank Flag Link Tue Jan 11, 2011
"IF your offer was accepted at a auction"

Carlos - Excuse me for disagreeing, but there is no contingency period at an auction.

No good faith deposit, either. You pay cash, immediately - period.

In a normal transaction, even if there had initially been multiple offers, everything I stated in my first comment, still applies - in my humble opinion.
Web Reference: http://BobPhillips.net
0 votes Thank Flag Link Mon Jan 10, 2011
IF your offer was accepted at a auction or you negotiated the price, then you cant change it, especially if they had Multiple offers, and you offered more in order to compete and win the bidding. The only way to back or change it if you have an appraisal Contingency or other conditions that may have an affect on the value of the home.
0 votes Thank Flag Link Mon Jan 10, 2011
Hi Anabel,

If you wanted to offer more I'm sure they would accept it. If less then no. Contingencies are designed to protect you in the even something goes wrong during the home inspection etc. They are not designed to protect you if you just change your mind. Hang in there. A little buyer's remorse is natural but home ownership is always a great long-term investment.
0 votes Thank Flag Link Mon Jan 10, 2011
sorry, once it is on paper and the ink is dry, it is a contract.
0 votes Thank Flag Link Mon Jan 10, 2011
No. You can't. If contracts can be altered, then they are not contracts. When a buyer makes an offer to purchase a property, and if that offer is accepted by the seller. The parties have a binding contract which cannot be changed unilaterally. Of course, there's nothing to prevent the parties from agreeing to modify the contracts as long as both sides agree. But during the contingency period, buyer has the right to cancel the contract if a contingency allows him to. You often see buyers attempt to renegotiate the purchase contract especially during the buyer's market because he can and seller's wiling to let him because seller wants to save the deal, not because seller believes buyer has the right to do so.
0 votes Thank Flag Link Mon Jan 10, 2011
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