Under Contract - Conditions on loan - What are my options??

Question

I’m currently under contract for an off-market home that is being sold “as is.” I’m purchasing the home through an estate via the sister of my neighbor, her and I are in contact and she is considered a friend. The home itself is in a great location in Seattle, but very dated and needs a lot of work. I got a good deal on the home, approximately $50 – $100k under market value, but I now have conditions for the conventional loan. The roof needs to last at least 3 years and it more than likely needs to be replaced and I need to update the panel box from fuses to circuit breaker. I’m trying to see if I have any options with the seller. We have already agreed on a price, and now I’d like to see if I can either get her to pay for some of the fixes, lower the price, or see if If there is a way to integrate the repair costs into the mortgage. Thoughts? I close on June 14th.

Nathan Gesner · Answer

Ask.

It is very common to offer a price, then negotiate repairs or price reduction based on what you discover during the inspection phase. Ask and see if she is negotiable.

Many sellers list property "as is" but then agree to adjust the price or make repairs.

Many buyers offer to purchase "as is" but then ask for price reductions or repairs.

Frankly, it drives me nuts. But that's the way real estate works.

Chris Seveney · Answer

@Jim Doyle

If it’s already $50-$100k below market you can ask, but be careful as pigs get fat and happy and hogs get slaughtered.

Dave Skow · Answer

@Jim Doyle- thanks 1) consider increasing the purchase price by the amount of the elec and roof work that needs to be done and then assist seller with getting the work scheduled and completed ( as this will be required to be donw before closing ) ..this way the seller is technically paying for the repairs and they wont lose any proceeds ....they will pay a little extra wa state sale excise tax but that wont amount to too much 2) consider putting less down and using some of your funds to pay for the repairs ( or part of the repairs ) 3) consider using a rehab loan 4) consider keeping the price where it is and asking for the sellers to complete repairs ( this likely wont happen) 5) get roofer and contractor estimates and get them lined up to do the work asap as it might takes weeks to get this scheduled / done 6) ask seller for extension on closing date if the work will take longer than 10 days ,,,Good luck

Under Contract - Conditions on loan - What are my options??

Under Contract - Conditions on loan - What are my options??

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