How Do I Renegotiate a Price Reduction on Real Property?
Once the initial excitement of finding the right house and getting a good deal wears off, many buyers begin to feel “buyer’s remorse.” They wonder if they paid too much or if they could have gotten the house for less. There are a few times when a buyer can renegotiate the price after contract acceptance but before closing.
Inspection
Read the inspection clause in your sale contract. This clause spells out the types of defects that, if found by a qualified home inspector, cause the buyer to walk away from the sale.
Sign up for a home inspection by an experienced and licensed inspector. Make sure that he inspects all major systems, crawlspaces, attics, and foundation areas. Get his report that notes all issues he finds.
Use the inspector's report to make a list of requested repairs. Your real estate agent can use the list to create an inspection amendment to the sales contract. You can also simply ask the seller for a reduction in the price instead of repairs.
Instruct your agent to let the sellers know you will walk away from the sale unless the repairs are completed or they reduce the price accordingly.
Ask your home inspector to examine the repairs to ensure they were done properly and according to the wording in the inspection amendment. If they were not, ask the seller for another price reduction instead of further repairs.
Appraisal
Get a copy of the appraisal report from your lender.
Note any issues contained in the appraisal that affect the home's value, especially if the home does not appraise for the purchase price.
Ask the sellers for a price reduction in line with any discrepancy between the appraised value and the purchase price. You can also ask for a price reduction in the amount equal to an issue affecting the home’s value. For example, if homes with pools in the neighborhood have sold for $10,000 more than homes without, but all the other pools were gunite and yours is vinyl-lined, ask for a reduction based on the price difference between a gunite pool and a vinyl-lined pool.