Instead of asking your client to rescind his requests, ask him to transform them. Ask him to price each one of his requested items, and discount his offer price accordingly. The bank will continue to reduce the price of that property until it sells. Banks typically won't budge much on their listing price if a property has been on the market for less than 30 days. However, most banks get increasingly more flexible--especially when a property has been on the market for 120-180 days. If that property hasn't been on the market for at least 90-120 days, then you should warn your buyer that this process is going to take awhile.
FYI, in the future whenever you work with investors, I'd recommend that you have your client to write up a LOI first. This way you can present it, and you don't have to waste a lot of time writing multiple drafts of the contract. As soon as your client and the seller come to terms, then either you or the listing agent can write up the real contract with all of the terms agreed upon.
Don't steer your client towards short-sales (aka pre-forclosures) or foreclosures. Those take more time (and usually cost more) to process than REOs, and--unlike REOs--(pre-)foreclosures still retain their liens.
You might want to steer your client toward a short sale. He could then view the property and at least visually determine what is working, and because it saves the bank the expense of foreclosure, he might get a better deal. The downside is that it takes forever to get an answer.
Everything else you have told your client is true. Remind him that the reason a foreclosure is a better deal is because of the risk. You get what you pay for.
First, good luck working with this "investor". I have represented both banks and buyers of bank properites. The bank will do nothing but sell the house "as is--where is". You did your job of informing your buyer, and writing what he wants in an offer, but----You need to tell him that if he wants to negotiate, he needs to buy a home form an private owner, not a bank. (I hope he didn't take one of those classes that tells a buyer/inverstot how to buy with little or no money down and make millions in a few short month.) I would suggest you find another client who is more reasonable. Good Luck
Jean Pritchard, Principal Broker
John L Scott Real Estate PTL
Portland, OR 97030
Thanks for your opinions. The negotiation is not over yet, will see what happens!? It is just nice to hear from other Realtor's opinions and stories, it is great to receive responses.
Thanks for your advice. I did tell him it is a buyer's part to pay for the inspection, because it is the buyer who wants to know what is wrong with the property. I explained to him it is a foreclosure, and the less the buyer asks them to do, the higher chance they are going to get the property. That's why I told him we will put contract accepted upon satisfactory inspection report, so he can get out of it in case the inspection comes back terrible, like major repair on plumbing, electrical wise. His point of view is he thinks economy is bad and the bank wants to get rid of it and they will give in. I am just wondering after all I explained to him, am I missing out something I could do it differently. I know he is not being realistic, but I want to hear from other real estate pro and see if there is something they know and I don't. Thanks.