Price Reduction Request Form
Ethical post-inspection negotiation tool with training
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A Price Reduction Request is a formal, written request submitted to the seller (or their listing agent) after a property inspection reveals repair issues that were not anticipated at the time of the original offer. This is a standard, widely-used practice in real estate transactions — both residential and commercial.
Every purchase contract includes an inspection contingency period (typically 7–14 days) during which the buyer has the right to inspect the property and negotiate based on findings. The Price Reduction Form formalizes this negotiation in a professional, documented manner.
This is NOT a bait-and-switch tactic. This is a legitimate, ethical negotiation tool that protects both the buyer and the seller by ensuring the purchase price accurately reflects the true condition of the property.
Quick Reference: The 70% Rule
MAO = (ARV × 70%) − Total Repair Costs
When inspection reveals additional repairs, recalculate your MAO with the new total repair estimate. Your revised offer should be at or below the revised MAO.
Always attach the inspection report and contractor estimates to your request.
Fill Out Your Price Reduction Request
Property & Seller Information
Deal Numbers
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Your Revised Offer
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Letter Preview
Dear [Seller's Name or Listing Agent],
Thank you for your cooperation during the inspection process for [Property Address].
After a thorough review of the property by a licensed professional inspector, the inspection uncovered additional repair issues that were not initially anticipated. These findings have resulted in an increased cost for repairs beyond our original estimates.
Based on our updated analysis, we respectfully request a price reduction to help offset the increased repair costs. Our initial offer was based on a Maximum Allowable Offer (MAO) of [Original Offer Amount], calculated using a 70% ARV framework with an After Repair Value of [ARV] and an estimated repair cost of [Original Repair Estimate]. With these new findings, our revised numbers indicate a need to adjust our offer accordingly.
Key Points of Our Revised Analysis:
• After Repair Value (ARV): [ARV]
• Original Offer: [Original Offer Amount]
• Original Estimated Repair Costs: [Original Repair Estimate]
• Additional Repair Costs Identified During Inspection: [Additional Repair Amount]
• New Total Estimated Repair Costs: [New Total Repairs]
• Revised MAO (ARV × 70% − New Repairs): [Revised MAO]
In light of the above, we propose a revised purchase price of [Revised Offer Amount] for the property. We believe this figure more accurately reflects the current condition of the property and the associated costs required to bring it up to market standards.
We have attached the full inspection report and contractor repair estimates for your review. We remain very interested in moving forward with this transaction and are committed to a timely closing. We kindly request your review of our revised offer and look forward to discussing how we might best reach a mutually beneficial agreement.
Thank you for your understanding. Please feel free to contact me directly at [Your Phone Number] or [Your Email Address] to discuss this further.
Sincerely,
[Your Name]
[Your Company Name]
This form is for educational purposes only and does not constitute legal advice. Always consult with a licensed real estate attorney in your state before submitting a price reduction request. Laws and procedures vary by jurisdiction. Use this tool ethically and in good faith.