Make counteroffer before cutting price
Q: I’m selling my house and there were some issues which the buyers view as “major” discovered in the inspections. They want me to reduce the purchase price of the house by a large amount ($50,000) and I think that’s unreasonable. I want to sell my house but I’m not sure what to do.
A: This time in the home sales process can be difficult. Sometimes you get a buyer who wants you to fix (or give them a price reduction or closing cost credit) for the things you agree should be fixed. Other times the buyers view the situation very differently and, for them, the house is worth much less.
There are a few considerations when deciding what to do. First, it’s important to remember you will have to disclose any new information about the house if it’s an “adverse material fact,” meaning anything that’s wrong with the house. Your Realtor will have the same obligation. Since you’re not likely an expert in these matters (and neither is your Realtor) you can’t really decide what’s “adverse” or not. So, you just disclose everything you learned from the inspection. Once you’ve done this, future potential buyers might view the house differently and start offering less money.
Another consideration is how long it will take you to sell your house if you go back on the market. If you have a mortgage payment, you’ll want to add up how many months of payments you’ll be making while you wait to sell your house again.
Finally, you’ll need to think about your personal situation and how quickly you’d like to move forward with the next phase of your life. This probably has some financial value to it but also, there’s an intangible element to this decision. If you feel confident with your chances on the market and don’t have to move forward quickly, then maybe risk going back on the market. But first, make a counter offer. In my opinion, you (whatever side of the transaction you’re on) should always put forward your best and final offer. In other words, always tell the other party what it will take for you to move forward and let them say “no” if needed. At least then you can walk away from the situation knowing you tried everything you could to make it work.
Good luck with selling your house! There are no easy answers here but the above questions might help you figure it out.