Reduce offering price after home inspection

[Tom Server]

Hello, I'm looking to reduce my offer after the home inspection. How do I go about getting estimates for repairs when I'm not the owner of the house? I want to offer estimates proof to justify my reduced offers.  Such repairs I want to get quotes for are like the roof replacement, hot water heater replacement, plumbing repairs from leaks , electrical repairs ?

Any tips to write up and send to the seller?

[Steve Milford]

Just be aware, that your estimates may not match their estimates. It all depends on how much you want the house. If you offer your list and want a reduced price to $230, if it was my seller, I would just advise them to either 1) let this one fail, and see what the next buyer offers, or 2) let this one fail, and then lower the list price to say $275k and change it to as-is so the whole world can take a crack at it and let it play out. 3) take it an run to closing as fast as possible. You might be getting a steal at $250k, and they just want to be done with the house. Again, it comes down to your walk-away factor. Every home gets "inspector-ized" in some fashion and then it is contractor against a contractor. I have seen offers to remedy roofs for $20k from buyers whereby the seller finds a lender-approved solution for $1,500.

That being said, the seller also has a walk-away factor. You think the seller might counter with a $240, but that is a guess at best. I have represented many sellers where the buyers conduct all sorts of inspections on the house they want, in an effort to build a case for lowering the price. Then after the buyer presents their list the seller says no to all of it. Just because you spin your wheels looking for ways to lower the price doesn't mean the seller will go with it. A lot of this also depends on the Realtors negotiating as well. If you are within your inspection contingency, then spend all the time you want inspecting it. I've seen it where one buyer makes a fuss about a roof, so the deal fails, and the next buyer says the roof is acceptable. One thing that I have found that holds true across the board, the longer a buyer is in contract, the more they want the house, even if there are major defects. I had a recent seller who agreed to reductions only if they closed by a certain date, and any delay was a $1,000 reduction of closing cost assistance per day. Most everyone knows there are delays, well the Seller was able to get back some of their closing cost assistance money; the buyer was really scrambling.

What is the point of all of this? Don't get too greedy in my opinion - it might not go in your favor. But if the numbers don't work, don't bother with it. You could always walk away and come back to it if it stays on the market. Flippers and professional rehabbers offer onto lots of homes, and that is why they offer so low. They only need 1 or 2 to stick at any one time.