When all of the inspections and repair estimates are complete, its time to go back to the seller if there are any items that you want fixed prior to closing or want to be compensated for by a reduction in purchase price or increase in seller paid closing costs. This negotiation must be settled and agreed to in writing prior to your due diligence period ending or you will have effectively purchased the home “AS-IS.”
This negotiation is conducted by way of the Amendment to Address Concerns with the Property, which is another standardized form that is passed back and forth like a counter-offer form. Some buyers ask for nothing, and some ask for a lot. This all depends again on the house in question and the condition it is in. If an agreement cannot be come to, the buyer still has the option to terminate the contract as long as the due diligence period has not expired. Once both sides have agreed in writing on the amendment, we call this an executed amendment and it becomes part of the contract. At this point, the due diligence contingency is usually removed and it becomes much harder for the buyer to back out of the deal without losing their earnest money.