DB, Home Buyer in Fort Lauderdale, FL

Can I negotiate with Fannie Mae based on my inspection results?

Asked by DB, Fort Lauderdale, FL Wed Mar 26, 2014

I submitted an offer on a Fannie Mae foreclosure in Boca for $160K, however, the inspection results showed repairs of about $10K. I know it's "AS IS" as they say, but is it still possible to negotiate the price lower with Fannie? What's been your experience with this?

My realtor has been absolutely aweful (but I don't think I can change now), so any help or insight would be greatly appreciated.

Help the community by answering this question:


The sale does state "As Is" but if you find repairs that doesn't mean that you can't go back and re negotiate... It just means that the bank will not do repairs. Sometimes if you submit proof of the condition/repairs necessary the listing agent can go to the asset manager and try to et approval for a credit for those repairs or a reduction in price. If it is a repair that can arise with the next buyer, they will usually consider it.

Best of luck,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE lic #01456982
1 vote Thank Flag Link Sun Aug 17, 2014
Great to see you on here Alex! I am negotiating with Fannie Mae currently. No other offers but they countered our offer with an above list price. I was stunned but not surprised. Good tips for Realtors and Brokers
Flag Sat Sep 5, 2015
We bought a home "as is" and upon inspection, we learned it needed a new roof. We told the sellers that either they replaced the roof or we were out of the contract (and we would have received our deposit back). They fixed the roof. So, you might try that. Be willing to walk away from the home, though, if they won't fix the things that you are concerned about and they might very well do that.

And yes, I know all about awful realtors.
1 vote Thank Flag Link Thu Mar 27, 2014
Everything is negotiable in a contract to purchase as long as you are still in your inspection period you can re-negotiate the price and terms.
0 votes Thank Flag Link Tue Sep 23, 2014
Typically if it is an FAR BAR "as is" contract you signed, you have the right to inspections. If you find out that the repairs are far beyond your expectations and not in your means of budget to take on as new homeowner, you can still try to negotiate with the seller including REO Properties and Fannie Mae. However since the market value has risen and foreclosures and REO properties are down by 16% the inventory remains on the lower side on below market homes and condos. These properties tend to have multiple offers and or are in back up status, which makes it harder for the buyer to negotiate. Best of Luck
0 votes Thank Flag Link Tue Aug 26, 2014
As long as you are in your due diligence inspection period you can always re negotiate or pull out of a contract. It will depend on the extent of the repairs and the banks willingness to negotiate. If not simply move on to another property. As far as your realtor goes, you did not give an explanation for why you think they are awful. I've found that many clients find fault with the agent when it's not their fault. I'm not ready to jump on a realtor bashing band wagon with out more information.
0 votes Thank Flag Link Sun Aug 17, 2014
I'm sorry you've had a bad experience with your current agent. You have the right to change agents if they are not holding up their end of the bargain. You may want to speak with an attorney first but you should absolutely be comfortable and confident with your agent.

If it's a repair that they deem necessary to be able to sell to another buyer, they may consider it, especially if it's a safety issue. If it's cosmetic repairs or known issues, they most likely won't consider it. It's worth asking for sure.
0 votes Thank Flag Link Wed Aug 13, 2014
It never hurts to ask. The worst that can happen Fannie says"no" and you will have to decide if you are getting out of contract or going forward anyway. Just make sure it is all sone within your inspection period.
0 votes Thank Flag Link Thu Mar 27, 2014
Are the repair issues items that you could see yourself when you made the offer, such as broken tiles or windows, broken fans, missing cabinet doors. leaky faucets etc? If that is the case, then it may be tough to negotiate since FNMA might hold the position that you already knew about these issues.

If the issues are things like plumbing issues, foundation problems, a/c problems - then you can ask for a repair credit from FNMA. They may or may not approve it, but it is worth a shot. Just make sure you do all of this within your inspection period listed on your sales contract.

David A. Netzer
Sales Associate/Realtor
Hot Tropic Properties
Cell: 954-415-8893
Fax: 888-285-8479

0 votes Thank Flag Link Thu Mar 27, 2014
Yes, you can negotiate with Fannie Mae, the lender and Realtor that you are working with should be able to help. We do 15-20 Fannie deals a month and most are able to be renegotiated. Are you doing FHA 203K or HomePath Renovation? I don't know if you already have a lender, however, I would be more than happy to help you with this. I have specialized in renovation financing for 21 years and 90% of my business is Fannie Mae, short sales, distressed properties, etc. My website is http://www.titanhl.com or feel free to Google me to learn about my experience.

Best of luck to you,

Andy Wood
0 votes Thank Flag Link Thu Mar 27, 2014

Regardless of whether or not you can get the seller to agree to correct this problem there are important terms in this agreement that need to be pointed out. A standard "AS IS" contract allows the buyer to exit the agreement but needs to operate within the specified time frame of the agreement and the intent to cancel needs to be conveyed in writing within this time limit to be able to have your escrow money returned.

So, as you move forward with this initiative, please keep your deadline in mind.

Best wishes,

0 votes Thank Flag Link Thu Mar 27, 2014
When buying a bank owned home that is sold as is, you need to inspect everything BEFORE making an offer. Virtually all banks that sell the home as is will not re-negotiate after a home inspection. Many of the answers below would have been good before you made the offer such as asking for 3.5% incentive. You can not usually re-negotiate or add things to your contract once you make it and it is accepted and signed. When buying REO homes, buyers really need to hire agents well experience din REO homes that will guide you before and during the sale. You need to review your contract under inspections and see what it states.
0 votes Thank Flag Link Thu Mar 27, 2014
Sometimes but they usually are "as is". It usually states that in the MLS. They are usually priced to sell and go fast but the best of luck to you, why not try?
0 votes Thank Flag Link Thu Mar 27, 2014
Hi Hwkeye05,
Yes the sale is "As-is" which means you agree to accept the present condition at the time of closing. However you can absolutely ask for them to consider paying all or some of the repairs. The best way to go about doing this is to obtain 2-3 written bids from licensed contractors, this way the cost to repair is realistic. Make sure they are "SAM" approved. You need to instruct your agent to send you an addendum requesting the seller to make these repairs. If the repairs are legitimate and or required by your lender then you have a good chance of having these repairs made by the seller. See the below verbiage directly taken from the FNMA Home Buyer Booklet:

Has Fannie Mae made all needed repairs to a house?
Fannie Mae may make some repairs to properties to increase their
marketability. Other than that, Fannie Mae sells each property “as
is.” So the buyer should be aware that other repairs may be needed.
Fannie Mae is not responsible for making any repairs or fixing any
problems after settlement.

• Even if the house has fresh paint, brand new carpet, new
appliances, perhaps even a new roof or siding, it doesn’t mean
everything in the house is new, or even works.
• Fannie Mae does not warrant or guarantee any work that may have
been done on the property, whether as part of its efforts to sell
the home or pursuant to conditions in the purchase contract.
• Where a home warranty is available, you may wish to buy it at
your own expense.
• We strongly recommend that you hire a qualified professional
to inspect the property, whether it has been repaired or not.
Generally, hiring a home inspector is a recommended practice, no
matter what type of home you buy.
• Fannie Mae sells each property “as is,” which means that the
buyer accepts the property in its present condition at the time
of closing. For more information on this topic, go to “Has Fannie
Mae made all needed repairs to a house?”— found in the FAQs
section of this Buyers Guide. Also, Fannie Mae is not responsible
for any repairs that may be needed after settlement.*
* Additional repairs to the property may be required, depending on the type of financing,
such as FHA products. When this happens, the lender typically contacts our listing
broker to communicate these requirements. Fannie Mae then reviews the offer to
determine if we are willing to re-negotiate the existing contract to account for those
repairs. There are instances when Fannie Mae will not accept certain types of repairs
and the buyer will either have to obtain other financing or choose another home.
0 votes Thank Flag Link Thu Mar 27, 2014
You wrote above...."My realtor has been absolutely aweful"

Tell me, exactly what she or he has done or has not done to make you feel this way.

As a Florida Mortgage Broker, I'll tell you what I think and if you are over reacting and expecting too much as so many consumers tend to do or if the realtor is at fault which is usually the lesser of the cases.

Please share with us your experience.

0 votes Thank Flag Link Wed Mar 26, 2014
Very good answers here! Definately look into the 3.5% incentive as a negotiating tool. Are you still within the inspection period should you decide to back out? Hopefully you are.

Best of luck!
0 votes Thank Flag Link Wed Mar 26, 2014
Here is a link to buyer resources when purchasing a Fannie Mae HomePath home. I hope this helps you in your quest for additional information. http://www.homepath.com/resources.html
0 votes Thank Flag Link Wed Mar 26, 2014
From Fannie Mae website...

Fannie Mae is offering up to a 3.5% incentive for owner-occupant buyers who request the incentive at their initial offer during the First Look period, purchase a HomePath property in select states on or before March 31 and close on or before May 31, 2014.*

To be eligible for this incentive:

All actively listed properties in select states** are eligible.
Buyers or their agents must request closing cost assistance at initial offer.
Initial offers must be submitted on or after February 14, 2014, but not later than March 31, 2014.
Property sales must close on or before May 31, 2014.
Buyers must reside in the home as their primary residence or be a public entity — auction, pool and investor sales are excluded.
0 votes Thank Flag Link Wed Mar 26, 2014
You might be able to ask for about 3.5% in closing costs. Are you using this as a primary residence under the "First Look" program?
0 votes Thank Flag Link Wed Mar 26, 2014
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