WE NEVER RETRADE. EVER.
A re-trade is the practice of renegotiating the purchase price of real property by the buyer after initially agreeing to a higher purchase price. Typically, this occurs after the buyer gets the property under contract and during the due diligence period. The buyer can raise a due diligence issue and demand that the purchase price be lowered to the re-trade price. The seller then must either accept the lower price or re-market the property.
In troubled real estate markets, like that experienced in the Late 2000s recession, it is common for some buyers to intentionally misuse the due diligence process and to initially offer a higher price than they are actually willing to pay in order to control the property and renegotiate later. The purpose of a due diligence period is to allow the Buyer to fully investigate all of the claims, warrants, and representations a Seller has made.
AIC prides itself on a strict no re-trade policy. We do all of our due diligence up front, before ever issuing a commitment letter. Because of this process, the terms agreed upon in the commitment letter are guaranteed to be the same terms at the closing table. No Re-trades, Ever.