Negotiating The Price Down

Anyone have any normal procedures for negotiating your accepted offer down? I put an offer on a 4 unit multi-family which was 15K less than the asking price. It was accepted. Now I have a home inspection today and I already know at the very least that the roof needs to be replaced. Now after the inspection I at the very least intend on pulling the cost of the roof, security deposits and any other work that may need to be done. Anyone have any advice on this I definitely want the place but, have no intentions of paying for a new roof without cutting down the price.



James

Comments(9)

  • jtsmiley4th February, 2006

    in the future, just for my knowledge cant you put this a s a contingency??

  • birchman24th February, 2006

    As of right now the deal is down to $30K from asking with a $5K concession for me. Basically I will need about $8000 to get this deal done. Still in escrow hopefully it works out.

    [ Edited by birchman2 on Date 02/04/2006 ]

  • fmmp5th February, 2006

    Quote:
    On 2006-02-04 14:52, birchman2 wrote:
    As of right now the deal is down to $30K from asking with a $5K concession for me. Basically I will need about $8000 to get this deal done. Still in escrow hopefully it works out.



    <font size=-1>[ Edited by birchman2 on Date 02/04/2006 ]</font>



    The deal seems to be in your favor now - run with it!

  • birchman27th March, 2006

    Deal was done and at $35K less than asking with $5K concession. First deal and a 47% cash on cash return. No complaints so far.

  • pmatheson17th March, 2006

    Every mortgage I have had, has an interest rate in effect for the period the payment is for. All excess is applied to principal, whether it is $1 or $1,000. The lender only has the right to the interest agreed on, all other $$ will be applied to principal.

  • birchman27th March, 2006

    Some lenders do not automatically apply excess payments to principal. Citi just recently did this to me in December by trying to apply the excess to the next months payment. I received a statement not due to a couple of months.


    Quote:
    On 2006-03-07 15:44, pmatheson1 wrote:
    Every mortgage I have had, has an interest rate in effect for the period the payment is for. All excess is applied to principal, whether it is $1 or $1,000. The lender only has the right to the interest agreed on, all other $$ will be applied to principal.

  • AaronSanDiego12th March, 2006

    Contact the loss mitigation dept.

  • Stockpro9912th March, 2006

    Loss mit would have little if anything to do with these properties.

    You need to find the REO department of the bank and see what is going on with these particular properties. Loss mit generally only appl;ies to preforeclosure
    [addsig]

  • Stockpro9912th March, 2006

    Better yet attend your local REIA meeting and find someone that is doing what you want to do. At our meetings I frequently find people that lend on these types of deals.
    [addsig]

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