After an offer has been accepted on a bank owned property will they renegotiate price based on major repairs?

Asked by Larry Barlow, Harrison, TN Sat Feb 28, 2009

We have made a bid on a foreclosed property contingent on inspection. Inspection revealed that the outdated plumbing is leaking and needs to be replaced before the house can be occupied. The offer says that the house is sold "as is".

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7
Patrice & Je…, Agent, Chattanooga, TN
Tue Mar 3, 2009
The offer to purchase should include an inspection clause that provides for termination, as is or repairs to be negotiated.

This language is standard in TN contracts. As was state below, if you are simply in the offer stage it never hurts to ask even when the house is sold "as is".

I trust this helps,
Jeff
1 vote
Bill Eckler, Agent, Venice, FL
Sun Mar 1, 2009
Larry,

It sounds like you had an inspection done prior to having an agreement with the bank. If so, our recommendation is to bein by adjusting your offer price to include the cost of doing the repair work. Be sure to include documentation of the necessary repairs from the inspection report.

Banks can go either way with this sinerio by making the repairs or taking a solid line "AS Is" approach.

We feel it would be best to adjust your odder price ASAP.

Good luck
The Eckler Team
1 vote
James Gordon…, Agent, Hamilton, OH
Sun Mar 1, 2009
Larry I am going to give you the worst answer but the most realistic It all depends on the price and the price for the area. They may have already taken into account the defects in the property when pricing it. There may be problems that they are not aware of. I have had lenders agree to 10,000 in repairs on a 105,000.00 purchase and I have also been told as is means as is when we asked for a 300.00 roof repair that was a condition of the loan.
You just don't know until you try. Make sure you have an estimate for the repairs and your inspection report with your counter. They will want to see numbers to make a decision.
Web Reference:  http://www.Find1Home.com
0 votes
Julie Real E…, , Rancho Cucamonga, CA
Sat Feb 28, 2009
Larry, if you are getting an FHA loan, then you will be required to adhere to their rules. That is good news because when banks know that you are under FHA, they usually follow the rules and make necessary repairs to sell the house. If you are a making a cash offer, then you are pretty much left to the negotiating skills of your realtor. Good luck!

Julie Lozano
Rancho Cucamonga,CA
calljulielozano@yahoo.com
0 votes
Sherry Wheel…, , Knoxville, TN
Sat Feb 28, 2009
Larry, I have had the lender do repairs when they were needed for a loan to be approved. If you're getting a loan see if they require it to be repaired first.
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Feb 28, 2009
Your buyers agent would have all the answers undeteremined on how the executed sales offer was signed. However bank is aware of condition of home, value, library of pictures.

If home is not move in condition you wont be able to obtain a loan unless the lender agrees too repairs. Many foreclosures are sold as is too cash buyers that dont require lender approval.

Dallas Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
– Lynn A. Crosby
Web Reference:  http://www.lynn911.com
0 votes
Michael & Ann…, Agent, Lincoln, CA
Sat Feb 28, 2009
They usually have their own contract that you will sign when negotiating and finalizing a "meeting of the minds". In that contract or agreement, they will usually tell you that you are taking the property "as is". They might (probably not) negotiate. It totally depends on the circumstances.
0 votes
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