Reduce offer after inspection?

[Andrew Troup]

Hi All,
In November we put an offer on a short sale house. Recently the listing agent said it was approved in the online system, although we are still waiting on the approval letter.

We have an inspection coming up once the letter comes in.

If we find major damage ($5,000+), we may want to reduce our offer to allow for the cost of the repairs.

Question: If we void our initial contract, are we going to have go through another 3-4 month process, or is it possible to make a simple call to the bank to see if they will accept a revised offer?

Thanks,
Drew

[Scott Hubbard]

Originally posted by Andrew Troup:

My agent says in order to renegotiate the price we have to void the whole deal and resubmit.

I negotiate on behalf of agents and I find this is rarely to be true. You have an inspection contingency and when you receive the inspection report, you should include a repair estimate along with the submission of your counter offer.

It is exactly the same as a traditional sale, but the lender, in the case of a short sale, can reject your counter-offer.

Of course, the listing agent may not want to go through the extra steps that are necessary and you may have to wait additional time for review, but the fact is many lenders will allow for necessary repairs.

However, keep in mind, if your already buying the house at a discount, your less likely to get concessions from the lender. Also, if your looking for a credit for lipstick and mascara, then you probably will not get it.

Good Luck!