Fannie Mae allows a 10 day inspection period after they have accepted the offer and an earnest money deposit has been provided.  Can anybody explain if the price can be negotiated if problems are found with the property that weren't expected?  If so, how can the price be negotiated?

Thanks!

Typically REOs are taken it or leave it. They will not typically negotiate.

@William Coet I would definitely try if you've discovered significant things wrong with the property that aren't readily visible. If Fannie's agents weren't aware of a problem, then they're going to have to deal with it one way or another whether  it's with you or the next buyer if you were to back out.

We provided a list of costs we discovered during the inspection and asked for a price reduction and they made a small adjustment.  Better than nothing I suppose!

@William Coet What was the total price reduction you asked for? How much did they come down? 

Originally posted by @Jaron Walling :

@William Coet What was the total price reduction you asked for? How much did they come down? 

We presented a list of $6k in repair costs.  They came down $1,500.  I think they would have come down more because the realtor (who does a lot of fanniemae) had told me they typically come down around $1,500 at a time when a property is first listed, however we were aware of another buyer who was very interested in the property and didn't want to risk fanniemae taking the accepted offer off the table.    The realtor did say that typically the price negotiation is done prior to the contract being signed.  This was a sfh under 100k.

Originally posted by @Andy Mirza :

@William Coet I would definitely try if you've discovered significant things wrong with the property that aren't readily visible. If Fannie's agents weren't aware of a problem, then they're going to have to deal with it one way or another whether  it's with you or the next buyer if you were to back out.

Agreed.  Despite their claims, you can often work out a deal for 'lender required' repairs or major finds.