2) We have not done an appraisal as our contract was accepted 3 days ago.
3) We are doing a FHA 203K loan to fix the items.
4) We do not want the bank to fix the house just reduce the price.
5) We are offering 3k more than what they were initially asking and any other buyer would have the same issues.
6) We are 1st timers so we saw problems, but did not know that the basement will have to be gutted...how would we know that? So thinking 25K worth of fixes is what we thought...not 46K
In addition though, if the bank is willing to renegotiate the sales price instead of making the repairs you need to make sure your lender will be willing to finance the house as is. 46k worth of work is a lot and I can only imagine there are some pretty major issues that your lender will not be comfortable with.
Of course all this is irrelevant if you are a cash buyer which I doubt you are since you paid that much over the list price.
Did the house actually appraise?
Better Homes & Gardens Real Estate Metro Brokers
The things they may consider are hidden defects like the well, septic, termites or testing the plumbing, if teh water was on you should have ran all faucets to make sure the pipes didnt leak.
Your buyer agent should have guided you through this. Now it is always worth a try to ask the bank, but in most cases they will not make repairs. you are going to want to submit a copy of your report, pictures of what is wrong andbids on company letterhead to back the amount you are asking. Do not ask for anything cosmetic or anything they will say you should have seen before making your offer.
Good luck with working things out