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.
Best of luck to you.
Best of luck,
Coldwell Banker Star Realty
BRE Lic #01456982
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?
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.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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!
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.
There are ton of reasons to renegoiate..Be creative but check with your attorney your are in a buyers market.
Bill Carey, Broker/Realtor
Bill.Carey@HendersonProperties.com l http://www.HendersonProperties.com
Charlotte's Premier Real Estate Company
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.
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.