When Your iBuyer Lowers Their Offer
It's an unfortunate thing we've seen far too often. A family is set to close on the sale of their house to OpenDoor or another iBuyer, and less than 48 hours before they are going to sign the papers, the iBuyer lowers their offer by $10,000 or more.
The timing of these reduced offers is not an accident. These iBuyers know that the closer you are to the closing date, the more likely you are to accept a reduced price. You may have already moved out, you may be waiting for the cash to complete the purchase of another house or you may need the money for bills that are piling up. What the iBuyers know for sure is that you need to complete this transaction, and that you may just feel stuck enough to take less money.
It is not unusual for investors or retail buyers to reduce their initial offer after further inspection. Sometimes issues are discovered with the house that will be expensive to repair. For example, if it is determined after the initial offer that your air conditioner needs to be replaced, it is likely that the offer will be reduced by about $8,000, depending on the size of the air conditioner.
The difference between reputable investors and iBuyers is that reputable investors are up front with you about this possibility and do their inspections as early in the process as they can. It is very unlikely that a reputable investor will reduce their offer more than 10 days after that initial offer. If there is a risk that the offer could be lowered, they should be in communication with you on why it may be lowered and when you will have a final answer.
So what happens if you are in the unfortunate situation of having a reduced offer? First, it's important to know that you do not have to close at the reduced offer. You can demand the iBuyer perform as they contractually agreed. If there was any earnest money offered by them, you are entitle to keep that earnest money if they don't perform. But chances are there is no earnest money, and they may refuse to perform to the contract.
Immediately after getting the reduced offer, you can look for a local, reputable real estate investor, like Justice Home Buyers. The investor will likely have experience in working with sellers in your exact situation. The investor will go over your options, and may even have an option to buy your house within a week. So even though your closing date will be pushed back, it will only be a few days. With an offer in hand, you can comfortably reject the iBuyer's reduced offer, and move on knowing you will sell your house on terms that work for you.