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Interesting point, Grizz. I have seen an increase in listings that state that the seller will do no repairs (these usually list the repairs/updates the seller has already done).
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Interesting point, Grizz. I have seen an increase in listings that state that the seller will do no repairs (these usually list the repairs/updates the seller has already done).
I would love it if sellers would do home inspection, do repairs and then share that information with potential buyers with a note that buyers are buying "as is".
Buyers could still do inspections.
I'm not seeing these worst case scenarios that are being discussed here but I am sure they are out there.
And Meh is right...buyers ARE having "skin in the game" once they start their inspections, appraisals, etc.
Much of this is all about educating buyers and sellers but buyers and sellers are people and people have feelings. It is the Realtor's job to keep everyone calm when emotions run high.
I love the fact that this thread has sparked such spirited debate!
Just wanted to mention that I'm hearing horror stories from my neighbors who attempt to sell their homes. Seems that some RE agents are so desperate to justify their profession in the Zillow age that they have potential buyers con'ed in to believing that previously lived in homes should be in comparable condition to new construction. This is a recipe for disaster and may help explain why so many sales transactions fall through.
One of my neighbors was being asked to do so many repairs from his potential buyer's RE agent that he ultimately just told them to walk. In no uncertain terms he told them, "if you want a brand new house then you'll pay more than asking price for my home or seek out new construction". I respect him for having the courage to be so blunt. By the way, his house is absolutely gorgeous. Here's a picture as proof.
Often sellers will be offended when an inspector or agent points out deferred maintenance and a request is made to have it caught up to a reasonable point.
A request for properly servicing a 10 year old HVAC unit to run cleanly and perform as it should is not the same as demanding a new HVAC unit.
A request for doing minor roof repairs so the shingles might perform for their expected lifespan is not the same as demanding a new roof.
We can compare to selling a car.
A car with 80,000 miles on it that has had routine maintenance is going to be more dependable than a car with 80,000 miles on it that has had very little maintenance.
And the seller can justify a higher price for the better maintained vehicle.
But, properly maintained or unmaintained, changing the oil does not produce a "new" vehicle. They are both still cars with 80,000 miles on the clock.
I would love it if sellers would do home inspection, do repairs and then share that information with potential buyers with a note that buyers are buying "as is".
Buyers could still do inspections.
I'm not seeing these worst case scenarios that are being discussed here but I am sure they are out there.
And Meh is right...buyers ARE having "skin in the game" once they start their inspections, appraisals, etc.
Much of this is all about educating buyers and sellers but buyers and sellers are people and people have feelings. It is the Realtor's job to keep everyone calm when emotions run high.
Let me tell you the "tip of the iceberg" story about the possum carcass and possum turds in the attic and the seller who "Never had a problem with that."
Interesting point, Grizz. I have seen an increase in listings that state that the seller will do no repairs (these usually list the repairs/updates the seller has already done).
My home inspector tells me that he is seeing a degradation in general of condition of homes, the deeper we get into a sellers' market.
Sellers have the upper hand and many are working it hard.
My home inspector tells me that he is seeing a degradation in general of condition of homes, the deeper we get into a sellers' market.
Sellers have the upper hand and many are working it hard.
Well, I think if those homes are reasonably priced and in good locations, this is less of an issue than if they carry inflated price tags.
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Let me tell you the "tip of the iceberg" story about the possum carcass and possum turds in the attic and the seller who "Never had a problem with that."
You truly must have some "characters" as clients!!!
You truly must have some "characters" as clients!!!
Hey. I had the buyers who are fairly normal people. The sellers were the ones who never had a problem with the dead possum and a generous serving of possum poop.
This is blatant misunderstanding of the root purpose of the DD Fee and the workings of the transaction timeline, and is one of the myths that furthers the abuses in the market.
Put yourself in the buyers' shoes.
The seller wants a high DD Fee, is lying about the mold in the house, has not provided maintenance records, and is tying up the buyer for a high cost while the buyer is paying rent or other living costs.
I agree that an aggressive buyer can improve a strong offer with a high DD Fee.
But, the sellers' shoes too often are devoid of disclosure or willingness to acknowledge less than perfect condition for a seller to claim they are tied up in any way.
That's a big "what if". Not all sellers are lying about the condition of the home. As I said before, if the house has been maintained and it highly desirable then DD needs to come up. Explain it to the clients and let them decide how much they want to do. Two months ago I saw $1,500 DD on a $146,000 house. Very little inventory, and the house was in good condition which brought in three offers in 24 hours. DD is what won the sellers over. That home was 5 years old and was well taken care of. A handful of small items on the inspection report which the seller took care of. Was that abnormally high? Yes but it was the buyers decision and in the end it worked in their favor.
It depends on the situation. Age, price, condition, dom, desirability, etc.... I sure as heck wouldn't pull my house off the market for $300 just so the buyer can change their mind in three weeks. Every real estate agent who works in NC knows this happens often. They go under contract and terminate because of either cold feet, or they found something they like more. When you increase the DD fee it reduces the chance of it happening because they have more skin in the game. DD is a double edge sword. It is typically much better for a buyer client, unless it's a sellers market then it can be used against them. It's up to agents to educate the buyers and let them choose what they want to do based on the facts provided to them.
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