Home Buying in Phoenix>Question Details

Laura, Both Buyer and Seller in Phoenix, AZ

Can you rescind or back out of a cash offer and offer less after the inspection shows much work needs to be done?

Asked by Laura, Phoenix, AZ Sat Jan 23, 2010

I offer 27900 on 1326 sq ft condo zip 85015 and after futher professional inspection I estimate it needs at least 10k of work to be suitable ie new roof new floor ing and painting appliances new ac and vent cleaning and electrical work and more. As my offer was not even countered I feel like I have offered to much and want to cancel and start again. Is that at all possible? I think 24,000 would have been a much better offer considering the work that needs doing.

Help the community by answering this question:


What is your agent telling you? If you used the Arizona Residential Contract you can cancel on the results of the inspection or give the seller an opportunity to repair those items. If it is bank owned that probably isn't going to happen but they might be willing to renegotiate with you on price as a result of the inspection. You really need to consult with your agent to see what the terms of your contract state.
1 vote Thank Flag Link Sat Jan 23, 2010
All depends on how you wrote your offer in the first place, seek the advise of your realtor and see what your contigencies are and how you are or are not protected and covered... good luck... also depending on the value of the house compared to comps... just because something needs work and your offer was accepted without count doesn't mean you over paid... do your homework
0 votes Thank Flag Link Wed Jan 27, 2010

If you used a Realtor® and that Realtor® used our Arizona Association of Realtors® Residential Resale Purchase Contract and you are within your inspection period, you can back out or attempt to renegotiate your contract. Contact your Realtor® and speak with them regarding section 6 Due Diligence, Inspection Period on page 5 of the Arizona Association of Realtors® Residential Resale Purchase Contract Purchase. This should solve your problem.

Christopher St.John
0 votes Thank Flag Link Wed Jan 27, 2010
Hi Laura,

If you used the standard offer to purchase forms when you made your offer, there is a home inspection contingency that the home must pass to your satisfaction. If it does not, the seller has the right, to make the repairs and preserve the contract--or give you the money to make the repairs. You will have to agree on the amount of the repairs and the seller will have to agree to it as well.

Some of the repairs you identify are cosmetic and not costly. Items that will be expensive are roof and AC, which I assume are at the end of their useful life. The appliances were there when you saw the unit and you made the offer knowing they were older.

If you offered "as is" or did not include an inspection contingency, then you will withdraw at the risk of losing your deposit, and risk a lawsuit for non performance of a contract.

Hope this helps,

Dane Hahn
Web Reference: http://daneandsandra.com
0 votes Thank Flag Link Sun Jan 24, 2010
Hi Laura,

Anything is possible but it depends upon the terms and conditions in your purchase offer papers and corresponding addendums.
Or, if you are doing this alone, your concerns are some of the reasons why you shouldn't.

Exclusive Buyer's Agent
0 votes Thank Flag Link Sat Jan 23, 2010

It will depend in a number of factors. First of all you might or migh not loose your earnest money, depending on what your contract says in terms of timelines and other details. Regardless of that, you might also be able to re-negotiate. But it again will depend on a number of other factors - including real comparables (you will need good ones for this and know the details of each), who holds the note (BofA, Freddie Mac, FNMA, Wells Fargo, regular owner?), time on the market, price history, etc...

This is something that a good experience agent will be able to help you with. If you have one, he will be able to answer all your questions and help you with all that. If you are not represented then you might want to consider hiring a lawyer to see if you can back out of the contract without loosing your earnest money or not - although he might not be able to represent you in price re-negotitations.

Good luck,

Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
0 votes Thank Flag Link Sat Jan 23, 2010
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