Home Buying in 02302>Question Details

First Time H…, Home Buyer in 02302

We just finished the home inspection and the house will likely need a little work, estimating 5 to 7k. We want to renegotiate the asking price given

Asked by First Time Home Buyer, 02302 Sun Nov 22, 2009

the work that needs to be done, do we have some wiggle room to renegotiate even though its a short sale?

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Well, it can be tricky. In a short-sale, even though there is a homeowner, the bank technically is the seller. It's within your right to renegotiate the offer price but, given it's a short-sale the bank may or may not take less money since they're already losing money. You could also face making the approval process take longer if they have already agreed to your offer price. If you have the time to wait, you can certainly renegotiate and now that the home-buyer tax credit is extended until April, your not in any immediate rush. My opinion would be to consult with your agent on the banks involved in the short-sale. Some banks are easier to work with than others as you can imagine.
2 votes Thank Flag Link Mon Nov 23, 2009
Territory RE...How do you know that the property is priced below market? You don't know the house, the condition...or the price...An awful lot of assuming going on!
1 vote Thank Flag Link Sun Nov 22, 2009
I have never seen a short sale that negociated anything especially repairs. They are as is
1 vote Thank Flag Link Sun Nov 22, 2009
First Time the homeowner is the seller and technically the bank negotiates with the home owner. You may be able to get the purchase price lowered because of conditions but the bank has done an appraisal and knows the value of the property. The seller may not have the funds to pay for repairs so it is up to the bank and all of us (tax payers) to dig a little deeper. Check with your agent but you may be able to a repair discount if the repairs that are needed were not appearant.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Mon Nov 23, 2009
The seller has defaulted on their mortgage which means they have no money to pay the bank back for the debt on the home and shouldnk't be able to afford fixes (any money spent by them will raise a red flag to the bank). Since it is already priced below market value if you lower the price even further you decrease the chances (even further) the bank will agree to the sale. Just so you know the deal isn't binding until the purchase and sale agreement is executed. This next stage is the hard part with short sales. I hope you have a buyers agent advising you through this process.

Good luck!!
0 votes Thank Flag Link Sun Nov 22, 2009
You can try but keep in mind the seller has to get bank approval.
0 votes Thank Flag Link Sun Nov 22, 2009
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