HOW TO NEGOTIATE WITH A BANK AFTER THEY ACCEPT AN OFFER- tips and secrets revealed

Today's question of the day is: Will the bank re-negotiate if i find anything wrong during the home inspection?

The first thing to note is all banks sell their properties "as is". Some banks will not let the purchase contract be contingent upon a home inspection. Others may allow it but will stamp the contract, home inspection for buyers use only and cross out the "contingincy" part.

What most banks have in common is, they will not renegotiate after accepting a contract. Most banks and their listing agents will tell you this up front, however it is a question you should ask straight up.
 
When the banks may say yes

The banks that will look at a renegotiation, will only do so on issues that you could not see with you naked eye. When looking at a foreclosure, anything you could see with your naked eye such as cosmetics, replacing carpets, painting, hand rails, broken windows, worn roof, missing fixtures and if teh water is on, teh faucets and heating system should have been included in your initial offer by offering a lower price to the bank to begin with.

The things they may consider are hidden defects like the well, septic, termites or testing the plumbing, if the water was on you should have ran all faucets to make sure the pipes didnt leak.

What to do if you did not look at things before your offer

Too often buyers rush to write their offer or have a buyer agent that is not expereinced in REO sales. The buyer agent should guide you through making your offer. If you do not have an agent, and are not expereinced with mainetenace or nechanical issues with a house, you should bring someone to walk through the house with you before making your offer.

So if you wrote your offer, you didnt look at anything that closely, your offer was accepted and now you have issues that came up with your hoem inspection... It is always worth a try to ask the bank, but in most cases they will not make repairs. you are going to want to submit a copy of your report, pictures of what is wrong and bids on company letterhead to back the amount you are asking. Do not ask for anything cosmetic or anything they will say you should have seen before making your offer.

In conclusion, my biggest suggestion and tip is:

The biggest tip i can give, is to thoroughly look over the house, be your own home inspector and start with teh roof and wor down, look at the shingles, siding, windows and foundation, on the inside look for water stains, run the faucets, turn on teh heat and air conditioning, run teh hot water, look for handrails and check the floor for torn or worn flooring. Take all of these into consideration when making your offer.

My popular blog "So you want to buy a foreclosure?" will outline in detail some more tips on making the offer.

Please check it out. http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_to_buy_a_for

Updated July 22, 2010

Blog Written by;

Scott Godzyk
Godzyk Realty Group

Manchester NH