How to negotiate list price after inspection and passing of many months?

**seth800** · 08-15-2009, 09:02 AM

My realtor wants us to sign an addendum with a closing date extension (again). She convinced us to offer the list price for a short sale home. That was 7 months ago. The prices have since dropped and sales have decreased. We have recently done an inspection and are now more aware of the many repairs needed.

I want to place my offer, but I don't want the seller and their bank to say no. I want to receive their counter offer. My realtor is NOT helping, she wants to make her full comission.

Should I make an addendum stating something like:

"Please extend contract date to 9/30/09. We would like to renegotiate a reduction in price considering repairs needed and the decrease of prices/sales in the area during the last 7 months. We are asking for a 10% reduction. Please accept or provide comparable counter offer."

I have NO IDEA how to word this. My realtor is just not on page with us.
I also read online that is important to provide some information on other comparable preforeclosures/short sales in the area and provide a list of repairs that would make this property undesireable for the average buyer? Anything else I should include?

**markbrian** · 08-15-2009, 10:43 AM

Tell your Realtor what you just told us. Be aware that short sales are a pain and do not happen quickly. Your Realtor needs to be aware of your thoughts on this matter, if they cannot respond to your satisfaction then ask to speak with their broker. Is it possible that your Realtor has no idea how you really feel?

Also 7 months is a bit extreme for a response on a short sale offer. Are you still waiting on response from the bank? If so I would just withdraw my offer and move on to other homes.

**seth800** · 08-15-2009, 11:25 AM

My realtor knows my thoughts on it, we wanted to make a lower offer from the beginning. She was VERY insistant that we had to make our offer at the list price. This is our first home, so we listened.

Now that we have done the inspection and 7 many months have passed, we realize that a price reduction is needed to reflect repairs and decrease in prices/sales in the area, but my realtor wants us to sign an extension addendum and keep the contract as is.

Yes, last month, (6 months) after the list price offer, the seller's bank agreed. We were about to close, but the seller's bank was bought out by another bank. The bank that bought them out is our lender. Maybe this can be leverage?

**markbrian** · 08-15-2009, 07:11 PM

Does your Realtor also represent the seller? You are under contract, therefore you may not be able to renegotiate price but if you do not agree to the extension you could walk. Might lose your EM. Really, honestly, it is hard to answer your questions without knowing seeing the contract.

**seth800** · 08-15-2009, 09:51 PM

We had our realtor indicate that if upon inspection, repairs exceeded $200, we can then chose to terminate the contract and get back EM. The repairs are approx. $10,000. The contract date is expiring in a few days!!! The seller has a separate realtor- their realtor facilitated EVERYTHING. Our realtor has not done much, in fact, she didn't even find us the house.

Maybe we should say, "we agree to extend the contract date to _____ upon reduction of purchase price to $_____. Please sign to indicate your acceptance and return to me within 48 hours."

or...."we agree to extend the contract date to _____ upon reduction of purchase price by 15%. Please sign to indicate your acceptance or provide comparable counter offer and return to me within 48 hours."

I am really looking for a 10% price drop, but don't want them to haggle me. What do you think? Should I get a lawyer or talk to the realtor's broker?

**markbrian** · 08-16-2009, 07:03 AM

I think you hit the nail on the head when you suggested talking with your Realtor's broker. You need someone local, with the ability to see the contract and that knows the local real estate laws to advise you.

**preety_gurl2** · 08-16-2009, 08:49 AM

you just need an experienced realtor.(I am not a realtor) Most realtors are currently holding firm on their asking prices but are VERY creative in throwing in additional upgrades as part of that price. It is also pretty common for them to be willing to include Buyer Closing Cost Credits up to 3% of the purchase price. Be aware that FHA is now the most consumer friendly organisation out their especially when it come to a low down payment situation.

**Greg** · 08-17-2009, 06:26 AM

$10,000 in repairs is something serious to consider. Talk to your agents broker and see about getting a new CMA done to verify the fair market value. Study the CMA to make sure the properties they use are really similar properties.

If the prices have truly fallen as you suggest then the property won't appraise and the deal will die.

If the property will appraise for your asking price then you are paying too much considering the amount of repairs necessary. The seller can't and the bank won't fix any of these problems.

If it needs $10,000 in repairs then you should be getting it for $15-$20,000 below fair market value. Just because it is a short sale doesn't mean it is a deal.

If the agent and their broker do not satisfy you as to the value of this property then use your inspection contingency to get out of the deal.

Do it soon because there is usually a time limit on these contingencies.