Reducing Price on Commercial MF after Contract Signed?

[Christopher Za]

Hi Everyone,

We are in contract on a 9 unit MF. While we anticipated some repairs in our offer price, the inspection has revealed some more significant issues with the slate roof (expected) and the brick and chimneys (less expected).  We are still in the inspection phase, and have the Seller's remedial phase coming up.  He will almost certainly not opt to cure (the expenses will be rather large).

I have been told that, in commercial deals, it is simply a take it or leave it proposition and that price changes are not negotiated after the contract is signed. However, my broker is already urging us (unsolicited) to seek a lower price.

So the questions would be:

1) Is it accepted practice to change the price if the seller refuses to cure?  

2) How would you go about negotiating or arriving at a new/fair number?

NOTE: The seller is also in the midst of doing a 1031 exchange with this property.

Thanks in advance for your thoughts!  Learning so much and very excited to be going down this road.