Question Details

DT83097, Both Buyer and Seller in Michigan

Do banks negotiate after inspection?

Asked by DT83097, Michigan Tue Apr 29, 2008

Just curious if during the inspection a defect is found or an 'appliance' (i.e. furnace, AC, etc.) is found to be not working, since banks won't typically fix the item themselves, do they ever give a price concession for the buyer to repair the item?

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I hate to say never, but the bank has had an Appraisal or a BPO (broker's price opinion) done at the time of listing and have set the price for an "AS IS" sale. Having done BPOs for banks we are asked for two prices. One is "AS IS" and the other is "Repaired" and depending on what their net is from your accepted offer, will determine if they are willing to allow you a credit on the Settlement Statement or not. If you have beat them up pretty good already, I would not count on it. If on the other hand, you made a generious offer, they may be willing to work with you.
1 vote Thank Flag Link Tue Apr 29, 2008
When purchasing a bank owned property, it is best to do all of your negotiating up front. Seldom to banks provide the inspections ahead of time, so you will have to write your offer being prepared to find necessary repairs when you complete your own inspections. That being said, plan your finances to account for you being responsible for repairs after he close of escrow. Negotiate your price up front, and don't expect htat bank to renegotiate once you are in contract.
1 vote Thank Flag Link Tue Apr 29, 2008
Banks sell "as is" and that's the bottom line! You take your chances big time when you purchase under those circumstances. That's why it's always hard to encourage someone who truly wants the home as a place to live. Investors have the scars to show for their previous efforts. A new homeowner doesn't have the scars or (usually) the $$$!
0 votes Thank Flag Link Tue Apr 29, 2008
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