Negotiating With Fannie Mae After Post-Offer Inspection

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Negotiating With Fannie Mae After Post-Offer Inspection

William Coet
Lititz, PA · Member since 2013 · 595 posts · 272 votes

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!

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Andy Mirza
Lender · Ladera Ranch, CA · Member since 2014 · 1k+ posts · 1k+ votes
6y

@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.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

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

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  • Andy Mirza
    Lender · Ladera Ranch, CA · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    @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.

    2Reply
  • William Coet
    OP
    Lititz, PA · Member since 2013 · 595 posts · 272 votes
    6y

    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!

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    6y

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

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  • William Coet
    OP
    Lititz, PA · Member since 2013 · 595 posts · 272 votes
    6y
    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.

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  • Phil Z.
    Real Estate Broker · Orange, CT · Member since 2013 · 951 posts · 218 votes
    6y
    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.

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