Virginia Beach, VA · Member since 2014 · 31 posts · 0 votes
I got a property on MLS under contract. I just realized the rehab cost would be more than the estimate. I have 3 days to closing. The comps that the hard Money lender are using is lower than the accual comp.
a) Can I renegotiate the contract(price) or I cannot change it.
what does your contract say? That will tell you your options. Why are the rehab costs higher than expected? What was discovered after your option period that change things? Can you fail them back? What do your comps say? Why does it matter what your lender says the comps are? Is it requiring more money down than you expected? Do you have a financing adendum that could get you out of the contract or you can use to leverage the price?
You can try to renegotiate , I dont see it happening , 3 days before , I would look at my contract line by line you may find something . But it sounds like you are going to doing some sweat equity .
i don't know your market or property, but cutting back on your rehab to only include necessities and then holding the property as a rental could be an option as well.
You can always walk, but you will lose your earnest money. Waking out on a contract is definitely not something you want to do unless you have to. You don't want to develop a bad reputation.
Thank you all for your feed back. I just withdraw from the Deal . The seller has not sign on the contract just told my realtor to withdraw from the deal.