Can I renegotiate a ratified contract?

6 Replies

Signed a contract to buy a house to flip as-is. No contingencies on contract. Offer got accepted. I definitely underestimated on the rehab. Brought in contractor and the rehab is almost twice what I estimated. Unless seller reduces price drastically, this deal wont work. I called the agent to ask about possible renegotiation with seller and he responded saying the contract is already ratified so that's not possible. Please help. Is there a way I can get out of this and get my EMD? or the only option is to back out and lose my EMD? Any other repurcussion for backing out other than losing EMD? PLEASE HELP!!!!!!!!!!!!!!

All depends on how the contract reads. If there really are no contingencies at best you'll lose your EMD at worst it's really crazy and the seller chases you down for non-performance.

I'm assuming it's a cash deal so there's no financing contingency? At that point I'd either eat my EMD and chalk it up as a paid education and/or pray for a title defect that can't be cured anytime soon...

If you didn't add any conditions, then the only way out is to lose your deposit.  It is often a good idea to put in an inspection clause to allow an out.  Talk to another contractor to see if the first quote was high.

Originally posted by @Theresa Harris :

If you didn't add any conditions, then the only way out is to lose your deposit.  It is often a good idea to put in an inspection clause to allow an out.  Talk to another contractor to see if the first quote was high.

 Thanks Theresa,

2 contractors and both around similar nbrs.

.@Razak Amadu - Did you get these quotes AFTER you ratified the contract? If so, how experienced are you at estimating rehabs? Ie, how did you get your rehab number that made you feel comfortable enough to ratify the contract at current purchase price?

PS - I see you're relatively new to REI. I'll be happy to lend give you pointers if you acknowledge that RTU > Kotoko. >:-)

Education isnt free . You do have another option . You complete the sale , and learn how to use a hammer and a saw . A bit of sweat saves a ton of money . You will learn a lot . And save you money in the future . 

There is no reason for the seller to accept less , the contract is signed . Would you accept less if you were the seller ?  The seller could sue you for performance and force you to buy . Weigh your options