Asking price reduction due to Coronavirus?

Question

Hi, I have a deal that is already in escrow since January. But now the coronavirus outbreak has gotten so much worse, I feel that the housing market is going to crash sooner or later. Is it fair to ask for a price reduction at this point?

Has anyone deal with a similar situation before?

Sam Shueh · Answer

At the time of contract acceptance you are done with negotiation. If buyers lost their job since and the reason is legit buyers may exit. If the Corona affects scheduling in CA there is a new form to acknowledgement by extending the closing date. If you have second thoughts, it is up to sellers to approve or keep the deposit as non-perform case. In our area, most offers are as-is with contingencies removed already at the time of submitting offers. You lose deposit sellers pick next waiting in line.

Jonathan W. · Answer

@Ken Ch we are in escrow. In my situation no. But I definitely would not say no for all situations. If your buyer feels he has another option other then you then I’d tread carefully because it would no doubt make him irate and want to sell to someone more ready to buy at his price. If his agent or him are ok with that or see that as possible then I’d say there is major risk with low reward or a high negative

Marc Winter · Answer

Fair?  You can always negotiate in real estate.  If you are going to cut the seller's legs off because of a pandemic, just do it.  But don't ask anyone if it is 'fair'.

Mary L. · Answer

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Russell Brazil · Answer

Well most markets are still in strong sellers market territory, with inventory shrinking. So the fundamentals do bot correlate to your hypotheses.