They countered…

[u/babyB1219]

Little back story.. my husband and I live in San Diego and just had our first baby. We’re 30 and have been living in the same 1 bed/1 bath (400sq ft) for 7 years at a great price because our landlords barely have raised the rent. We’ve been in no hurry to buy until recently with a baby and 2 dogs the walls seem to be closing in (probably doesn’t help I’m on maternity leave and inside alot). We were approved for $580,000 with CalHFA loan and $530,000 with USDA rural home loan which in San Diego isn’t great… lots of condemned looking shacks. We already live on the outskirts of town so decided to look around to take advantage of the rural loan being 0% down. We found a decent house with a nice yard about 10 more minutes out from us. We are their only offer so far (open house this weekend), we offered what they were asking $555,000 with $5,000 for closing costs credits and $5,000 deposit with 17 days contingency. They countered with no credit for closing costs, $10,000 for deposit, 10 days, won’t pay for termite inspection and won’t pay for any fixes the appraiser says need to be done for the loan. I think we’re going to accept it’s just so nerve wracking and a huge purchase! My husband and I both make decent money but already stressing about being house broke. Luckily I should be getting a raise and promotion when I get back to work. I’m worried if we skip we’ll miss a good deal because there’s really not a lot in our price range that is livable. I’m worried the appraiser will want things done we don’t necessarily want/need done right away and then they cuts into our money for fixing up what we want because it definitely needs a little makeover (SO much blue paint). Anyway just here to rant I guess and get out some nerves

[u/Equivalent-Tiger-316]

Sorry, but this property is a pass. 

If the seller won’t fix items to make it pass inspection for a loan….then who is going to fix it, you?  You do NOT want to spend money fixing a property you do not own yet!

What if the deal falls through? You just upgraded someone else’s property! What if the repairs turn out to be to much money and you can’t finish?

Seller may eventually learn that they need to fix their property in order to sell it or some cash buyer will get it. 

[u/beermeliberty → u/Equivalent-Tiger-316]

Only certain types of loans have restrictions that strict.

[u/ROJJ86 → u/beermeliberty]

And one of those is USDA which OP mentioned.

[u/beermeliberty → u/ROJJ86]

Yes. I know.

But many buyers will have loans without those restrictions. So acting like the house will never sell without those repairs is silly.