new question about inspection on an REO

[Account Closed]

We got a counter offer on our bid. We are not sure how much to set our final and best offer at. My question is, does the bank ever re-negotiate after the inspection if something major is found? Our realtor says no but we're not sure if that's set in stone or not. When I say major I mean the well, septic, plumbing... something that is over 10,000 to fix or even more than that.

[J Scott]

In terms of how much you should offer, I don't think anyone here can answer that question for you, at least not without a LOT more information...

Is this a house you plan to live in? If so, offer what you can afford and what it's worth to you.

Is this a house you plan to flip? If so, figure out your profit targets/goals, and offer what will allow you hit those goals.

Is this a house you plan to hold and rent out? If so, figure out what your cash-flow and return targets are, and offer an amount that will allow you to hit those targets.

As for renegotiation, if you have a due diligence period (sometimes known as an inspection period) in the contract, you can certainly come back to the seller and request a drop in price (or change in terms). It's up to the seller if they want to accommodate that or not, but having proof of the issue will certainly help your case.

If the bank says "no," it's up to you to decide if you want to move forward or not.

Btw, if you don't have an inspection period in your contract, it's unlikely the bank will make any concessions once the contract is signed.