How often do banks negotiate during contingency?

Question

Hi, all.

Comments from any experienced investors out there would be greatly appreciated.  Here's my situation:

My offer of $168,500 on a foreclosure was accepted last week.  The Seller is the bank, not Fannie, Freddie or HUD.  I had the inspection and estimate done this weekend, and it is about $15,000 higher than I originally ball-parked on my walk-though estimate.

My question is: if I offer to remove the Contingency only if the Seller agrees to a sale price of $155,000, how likely are they to accept it?  I partly think, "they're a bank. They'll just say no and move on."  But, I also know business, and they were pretty desperate to close by quarter-end, which is this month.

My prior flips were purchased from a wholesaler, so this is the first time I have been though this part of making a deal.  I'd love thoughts from those with more experience.

Many thanks,

Mark

Jim Keller · Answer

The bank is unlikely to renegotiate with you or anyone else unless forced to.   Use the appraisal, and home inspection/contractor estimate agenst them.  Find an undisclosed defect and ask for a credit...... a $15,000 credit!

I never offer using a contingency and always offer cash no inspections.  With this said your real problem is how could you have missed $15,000.  Not to say I don't make mistakes, in my market the bank wouldn't even liston to such a request the agent would just ask for a cancellation.  Get better at estimating the deal, this business is won and lost in aqusition.  Look at it this way, atleast you didn't close and figure this out, cut your losses and move one

Good luck

Phil Z. · Answer

Possible if they are MAJOR repairs and you are asking for a faction of the cost.  If it is an all cash offer it will be much more difficult.  If it is 'lender required' you have a good chance.

Wayne Brooks · Answer

Unless something changed with the property itself, not likely but maybe.