I tried to disclose and I got inspections and shared findings, I tooke pictures of repairs and uploaded them to MLS, I even encouraged buyers to do their inspections while waiting for approval and offered to pay. The MLS disclosed it is a fixer-up and even sellers pointed out areas in need of repair. Then the sellers vacated residence and gave permission for buyers to see property or inspect whenever they wanted. Well here we are with are "as-is" approval after 6 months and the buyers went to do their walk through inspection and produced a 57 page repair request when the only thing needed to close at this point is the appraisal, Certified HUD and Wire. Naturally the lender won't even consider it, making reference to their approval terms. How much more could I have disclosed to these people or to anyone, without hurting my sellers?
We had a counter and an addendum to contract that clearly stated no repair request will be honored or considered.
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Melissa,
I was discussing this very problem while presenting how to process short sales to our sales staff today. Buyers typically want to wait until after the short sale is approved to do inspections, and of course the seller wants them done upfront. If there is that much of a condition issue, I'd require the buyer to have the inspection and pass up that contingency right away, here the first five business days after contract are for inspection and attorney modification. Then there's no crying later. I'd be reluctant to work on a short sale for 3-6 months if the buyer still can drop out of the deal, even if the price is agreed to.
If you were 5 days in and the buyer wants a price drop for issues that were not obvious, you could just write a new contract with that price, and submit the offer along with repair estimates. 5 days wasted instead of 90.
At this point, can the buyer legally walk? I'd check with the seller's attorney, hopefully you're going to tell us there was earnest money!