Include a cover letter with offer?

17 years ago

Hello!

In a previous thread, I described a house which we are considering. It is an REO, and is unfinished (exterior completed, but no plumbing, septic, electric service, etc.)

We submitted an offer, which included an inspection contingency. The bank countered, accepting the price, but specifying that the house would be sold "as is," with the bank not responsible for any deficiencies, repairs, etc. at or beyond closing. This counter effectively eliminated the inspection contingency. We did not accept the conditions by the deadline, and so the agreement lapsed.

Meanwhile, our agent had the county inspector look the place over for us. The inspector found several issues with the house, which cause us to want to present a lower offer, since we will not have an inspection contingency, and will not be able to negotiate the price after we are under contract.

So, we want to basically start from square one, and submit an offer which is lower than our first one. Since the bank knows that we are the same folks who had already initially made a higher offer, would it be advisable to include some sort of "cover letter" with the new offer, rationalizing the reason for the lower bid?

Seems like I've read about such a "cover letter," but maybe it's just something I imagined (trying to make such a major decision such a buying a home will do that to a person).

Any ideas?

Featured Answer

kathyg_in_mi

17 years ago

DS made an offer on a bank owned home and requested for certain things to be done on the banks $ or $ to fix these things himself. The bank refused, son went on and bought different house. Eventually bank contacted him and said they were willing to work with him with $. Sorry, he said, we bought another home.
Offer lower and be willing to walk. Banks don't want to be home owners.......they may surprise you.
Kathy G in MI

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Comments (6)

terezosa / terriks
17 years ago
This counter effectively eliminated the inspection contingency.

I don't understand why you would think this. The inspection is for your information. Just because they are selling the house "as is" doesn't mean that you can't renegotiate price if defects are found, it just means that the bank isn't going to do any repairs. If I were to re-offer on the house I would definitely have an inspection contingency and I would hire a licensed home inspector to do it.
kelpmermaid
17 years ago
The "as is" concept doesn't necessarily preclude your getting an inspection. It just puts you on notice that the seller is not going to pay for any repairs. You could have had it inspected and gone back to them on that basis; they then could have declined to proceed. I don't think it could hurt, but did the county inspector put any of this in writing? The seller might have to disclose anything of which it is made aware to subsequent buyers...
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sweeby
17 years ago
In your case, I think a cover letter definitely makes sense, though I wouldn't go into too much detail. Just state your new offer, mention that you've become aware of some defects which account for the reduced price, and that you still need an inspection contingency to be sure the issues aren't too serious.
James Logan
5 years ago
last modified: 5 years ago
Hello. I remember the last thread. I think you should try. In the meantime, I found a very interesting article on the topic of cover letter template on the Internet at the link venngage.com/blog/cover-letter-template/. If suddenly this topic is still relevant for you, then follow the link and read the detailed information on the subject. Good luck!
sushipup1
5 years ago
Please flag necrospam from "James Logan"/