Can we renegotiate price after inital offer?Nothing major came up in inspection, but looking at comparables of upgraded house,it seems pricy

Asked by Newtomarket, Fremont, CA Tue Mar 1, 2011

Initial offer $350k. In comparables houses with upgraded kitchen, floor and painted well were sold for $375k, $380k, $390k. These were all upgraded - kitchen redone, wooden floor (laminate), painted well, fireplace, bathroom updated - flooring, tub also.

The estimate for doing these things came around $30k.

We think about offer about 5k less atleast. Contingency not removed.

Possibility of seller accepting?

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17
Meena Gujral, Agent, Pleasanton, CA
Tue Mar 1, 2011
BEST ANSWER
Hello Newtomarket,

Yes, I undersatnd that you have not removed your contingencies, but if there is nothing major wrong with the inspection.....????? It is a gray area and you agent will have to advice you on the next step. There are other contingencies in the contract like loan, appraisal etc and if there was a problem there, you could have those reasons to back out if you wanted to or renegotiate if the property did not appraise.

Meena Gujral
925-425-9491
1 vote
Jane Grant, Agent, Aguanga, CA
Tue Mar 1, 2011
I didn't hear anyone speak about "Appraised Value", was there an appraisal done?

If the price of the home is truly above value then the appraisal will come in lower than your asking price!


If the appraisal is lower than the offer price the bank will not loan you the money on the amount and the seller will usually lower the price of the home anyway!

If you are paying cash then you can get your own appraisal to settle your fears and if it comes in lower at least you will have a professional appraiser's opinion!

Good Luck!

~~~
2 votes
BG, Home Buyer, Phoenix, AZ
Tue Mar 1, 2011
Every buyers have the same feeling like you mentioned, maybe I should have bid a little lower, only after seller accepted the offer. Don't second guess your decision, move on with the COE. You can save $5k by looking for a good rehab contractor.
2 votes
Ruth and Per…, Agent, Los Gatos, CA
Tue Mar 1, 2011
Hi Newtomarket:

Sure you can but do using an Addendum. There is no guarantee you will get it.
Most likely not as the seller knows you are out inspections money.

You should have looked at the comparables a little better, before writing the offer.
As your contingency has not been removed prudent then to work with your Realtor
and take the right course.

Good luck.
Perry
1 vote
John Dutra, , Fremont, CA
Tue Mar 1, 2011
Newtomarket,

I would have to say that I am in full agreement with Meena and the remainder of the agents that have said that trying to negotiate now would be a mistake. It sounds like you are in the market anyway as if this home has none of the upgrades mentioned above, the value would be in the $350k range + or - a few.

To re-negotiate for $5k with a market that is heating up - (with a payment difference that amounts to $27 per month in a payment), this would invite the seller to say no and move on without you. With a an accepted offer of $350k ($30k below market per your description above), it appears as if you have done well for yourself.

If you bought the home As-Is - take the home and enjoy it. If you bought it dependent on inspections and can show that the home needs major work, then you could possible re-negotiate, but again, this might work in the seller's favor. Remember, when you come in with a counter-offer, everything done before goes out the window and the seller can withdraw his acceptance, taking the home back. If you release your contingencies and meet all contract timelines, you control the situation.


Wish you the best --
1 vote
Bill Eckler, Agent, Venice, FL
Tue Mar 1, 2011
Newto....

Are you working with an agent? You have things a little out of sequence because normally comps are reviewed prior to submitting an offer not after the home inspection.

Putting yourself in the seller's shoes, would you welcome a price decrease at this point. If you intend to take this position, you may be taking the chance of not getting the home and depending on the wording of the agreement, you could have an obligation to the seller.

What does your agent say about this tactic?

Good luck,

Bill
1 vote
Ingrid Remen…, Agent, Southampton, PA
Fri Mar 4, 2011
The only contingencies you should have left are mortgage. If the home appraises at or above agreed price then you are in good shape regarding value. If not - as mentioned below- you will not qualify for a mortgage. If you are not happy with your agent, reach out to their broker. You should not be depending on a national website to get your local answers. Best of luck!
0 votes
Newtomarket, Home Owner, Fremont, CA
Tue Mar 1, 2011
Literarly nothing is updated since last 10-15 years..no preventive maintainence etc..pretty much everything is 10-20 years old/ original to place
0 votes
Newtomarket, Home Owner, Fremont, CA
Tue Mar 1, 2011
Not sure whether its buyers remorse. I defintely think, that before putting first offer, I should have evaluated all expenses of updates including the time/energy. Also when we remodel we would have to follow newer codes.

Just seems like buying a total fixer upper place..

Also when need to sell, I would need to update it or reduce listing price to lower than my current price...there is also issue of HOA doing the termite section 1 issues. Just feel should wait till I have more options like summer...
0 votes
Ken Vasan, Agent, Fremonet, CA
Tue Mar 1, 2011
I guess you are getting in to buyers remorse. I have seen this many times with first time home buyers. You have raised so many issues and all your questions point to one direction which is BUYERS REMORSE in my opinion. Stay put and you will be alright.
Web Reference:  http://www.kenvasan.com
0 votes
Dawn Rivera, Agent, Fremont, CA
Tue Mar 1, 2011
Hi I am going to be short as you have many answers.........You are in contract for 350,000. If you add on 30,000 you are at 380,000 that's the average price and you will be able to choose your own colors for things..... so if you like the home and area I say see it through.....Dawn
Web Reference:  http://DawnRivera4Homes.com
0 votes
Gilbert Rich…, , Santa Clara County, CA
Tue Mar 1, 2011
It depends on the builder and how long you have been in contract
0 votes
Brian Ripp, Agent, Fremont, CA
Tue Mar 1, 2011
In my opinion, you can negotiate until you remove your contingencies. However, as Bill mentioned you may lose out (it might back-fire). As agents and sellers - we would like the negotiating at the begining of the transaction, but we see this sort of thing often. But what is 5K over ten years-not much.

good luck.
0 votes
Newtomarket, Home Owner, Fremont, CA
Tue Mar 1, 2011
@Meena Not removed contingencies so I will get the full deposit back
0 votes
Meena Gujral, Agent, Pleasanton, CA
Tue Mar 1, 2011
Hi Newtomarket,

If nothing major came in the inspection reprt, what grounds can you renegotiate on. It is too late to think about upgrades and the property being pricy. Looking at the amount needed to upgrade and the price the other homes sold at, it seems like you will be right there anyway, so why worry about it.

By trying to renegotiate now, you will only be upsetting the seller. Keep in mind there are multiple offers coming in on most homes and if you did back out, you could lose your deposit, plus the sellert may also be able to sell it for more money given the market right now.

Meena Gujral
925-425-9491
http://www.helpusellachievers.com
0 votes
Newtomarket, Home Owner, Fremont, CA
Tue Mar 1, 2011
Hi Bill,
I am not too impressed with my agent. Also after contract from what i understand, its hard to choose a different agent. So I am stuck with agent.
Believe me trulia.com has been really important for me, since I can get expert advise.

Agree that it is out of order..but willing to take a shot
0 votes
Ayub Azam, , Fremont, CA
Tue Mar 1, 2011
No you can not negociate price now. Only two time you negociate price, first when you are putting offer and secondly when some thing bigger came out in inspections.

Now only thing is backout from deal. If you did not remove all contingencies. You can get your deposit back.

Ayub Azam
0 votes
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