Q: Are there exceptions to renegotiating an executed purchase contract with the seller?
I would like to ask the Seller to pay a portion of my closing costs and possibly reduce the purchase price a thousand dollars. The Seller accepted an offer for full asking price, plus I opted to pay my own closing costs, without any negotiating. Closing is estimated to be $4700. The lender has added unexpected buy down “points” to my loan, property taxes are higher than were listed, and after a 20% down payment, my cash reserves will be too low. My monthly payment will be higher than what I can comfortably afford without Seller assistance. I am not sure if I should bring this issue up to my agent or wait until the inspection is complete. Both agents work for the same broker and agency as well. I don’t know if this matters. If I cannot remedy the problem, I will have to cancel the contract. Any advice on how to proceed to keep the deal going?
A:
As your mother or grandmother probably told you when you were a child, "You cannot have your cake and eat it too."
Under the facts you stated, unless the written buy/sale contract says otherwise, IMPO you have sufficient grounds to cancel the contract based upon the material changes that occurred between you and the lender (not the buyer). Most purchasers are smart enough to invoke the common clause that allows cancellation if financing doesn't work. And in some cases--where the buyer wants to continue going forward-- and will pay you enough money to make it work--it is possible to negate the effect of the lender's sudden changes. So you have a choice to make.
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