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Asked by Flower48, California Thu Oct 27, 2011

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9
Shanna Rogers, Agent, Murrieta, CA
Thu Oct 27, 2011
BEST ANSWER
Hi Flower48,

I just went through a similar situation. I am representing the seller. The property is being sold 'as is'. The buyer had a home inspection done and said they wanted the price reduced $50K due to the repairs required. I asked for a copy of the home inspection and did not see $50K worth of repairs required. I told the buyer's agent to do a Request For Repairs itemizing the requested repairs and the seller would decide weather to do a credit or do the repairs. The buyer cancelled contract. In my situation, the buyer was trying to get a discounted price for no verifiable reason.

In your situation, you state you've already reduced the price due to repairs needed. Have your Realtor ask the buyer's agent for copies of the inspections (if you don't already have them). Have your Realtor ask for a Request For Repairs (not another reduction in price). Get some estimates for the cost of the repairs requested. Have your Realtor also do a current Comparative Market Analysis (CMA) using Sold comps within a 1 mile radius of the property (the closer, the better) that have sold in the last 3-6 months. Once you have the estimates for the repairs, you can then take the current market value of the property (from the CMA) and either reduce the current market value by the amount for the repairs OR keep property at current market value and give a credit for the repairs or pay to have the repairs done. DON'T reduce the price AND either give a credit for repairs or do the repairs - why should the buyer get a 'double credit' for the repairs (price reduced and credit/repairs done).

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote
Shanna Rogers, Agent, Murrieta, CA
Thu Oct 27, 2011
Hi Flower48,

If you are having ANY reservations about lowering the price more, DON'T do it (if it's not justifiable). As I said in my response below, the buyer cancelled contract - and while that is disappointing and I too wanted the house closed/sold and done (it is my Mother's house and I am Trustee), I also don't want to give the house away. As I tell all my sellers: "It only takes one buyer". If this deal falls through, have your Realtor do the CMA and adjust that price for the necessary repairs (again, get estimates) and go back Active at the adjusted price - As Is.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
1 vote
Terry Bell, Agent, Santa Rosa, CA
Thu Oct 27, 2011
Well, you've made it clear that you don't want to fix the house to flip it yourself, and it obviously has a limited audience due to the limited financing available. You don't say what the original price is, or how large the house is, but certainly a house that has been neglected and abused for years, may have turned up many surprises as a result of dry rot, leaks, bad roof, old furnace, needing total remodeling, dry wall, new windows, is probably so much more work than anticipated. I would bring in my own contractors to bid and see what they have to say and subtract that estimate from homes in better shape and see where that puts you. Best, Terry Bell, Realtor, Sonoma County Wine Country
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Oct 27, 2011
I think you are answering your own question:
What is your priority?

Good luck and may God bless
0 votes
Karen Parsons…, Agent, Laguna Beach, CA
Thu Oct 27, 2011
Hi,

They can ask and you can say no. "As-is" is not a contract term (unless you write it so that they need to complete all inspections ahead of time....as in an auction) but it is an expectation. You have clearly told them not to expect you to negotiate repairs or concessions.

That said...they can walk away. But so can you. That's a decision you need to make.

If you feel that you've already discounted the home to compensate for the problems, then you can hold firm. Or perhaps offer something to make them happy. Talk with your agent and get some advice. He/she can also maybe feel out the other side and see if this is a deal breaker or just trying.

It's tough...sorry. But there are people out there looking for good deals and fixers.....so if it doesn't make sense anymore...that's something to think about .

Karen
0 votes
Walter 'Skip'…, Agent, Brea, CA
Thu Oct 27, 2011
Hi Flower,
After inspections, it is common for the buyer to want either repairs made, a credit for repairs or a reduction of price. This happens even with 'as-is' language. It is hard to say what to do not knowing the market value of the property and how it was priced. Have your agent help you determine the market value of the property after repairs and the cost of the repairs to determine what the price should be.
Good luck,
0 votes
Laura Coffey, Agent, Santa Clarita, CA
Thu Oct 27, 2011
Keep in mind that whatever expections were done you need to disclose them to any other buyers that purchase the place.
If I was your agent and you are close to or past the 17 day contingency period I would put your home on the market subject to cancelling escrow with the current buyers. See if you get any other bites. A buyer always has a right to ask. You always have the right to say no. But a house is only worth what someone is willing to pay for it at the end ofthe day. Maybe after the expections it's become not wortyh it to them
Good Luck.
Web Reference:  http://www.laura4homes.com
0 votes
Ethan Atkins…, Agent, Athens, GA
Thu Oct 27, 2011
This happens many times after inspections. I sell mostly foreclosures and almost all the banks and government organizations don't reduce prices after the originally agreed upon price unless its something like vandalism after the process has started, or to get a loan approved. If a neighbor is interested in it, most likely they want it as an investment to fix up and sell or rent, and it would only work based on a lower price. Try to think about the real reason you want to be done! Are you really putting that much time and effort, or are you just having the anxiety of selling. AND here is the best idea if neighbors really like it - - If they are trying to buy it at such a huge reduction they will negatively impact all surrounding values including their own, because the appraisers will then have to use this home as the next comparable sale in the future. Last idea - You might even want to get a comparable inspection by a contractor yourself and then drop the price based on that, or ask other agents in the area who sell foreclosures what it should be priced at to sell quickly.
0 votes
The Manchest…, Agent, Bonita Springs, FL
Thu Oct 27, 2011
A buyer can attempt a renegotiation at anytime but your contract should have time constraints with home inspections etc. There is usually a section that gives them a certain amount of time to have inspections on an "as is" contract, and if they find the property is not to their inspection liking then they can opt out in that time period or renegotiate, however if you want out of the property then you need to take a close look at the inspection and consider your options. How many people did you have looking at the property, was there a lot of interest, are you a handy man, can you fix some of the issues? Weigh all your options. It's always a safe bet to consult a real estate attorney, California laws may be a bit different, but your contract should spell out everything you need to know. Hope this helps, best of luck!!
0 votes
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