Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Never, never, never would I have the seller "fix" things before I buy.
As a seller, I can tell you that my buyer requested, "insisted", that I fix something that showed on his inspection report. I lived in the house for forty years and never had a problem with this item.
I didn't want to be bothered with it, so I offered a closing credit instead.
He demurred so I said I would fix it.
I got several bids for the job and went with the lowest bidder. The fix was the minimum amount of work. If I had been staying in the house, I never would have fixed the problem this way. But I was moving so I didn't really care about how long the fix would last. It only had to last until closing.
The cost was lower than the closing credit I had offered.
Never, never, never say "never."
I tend to agree that I generally would want to do my own repairs, but IF I were a buyer and asking a seller to do repairs, I would specify the scope of work in the repair agreement.
Vague repair requests put the seller and their skill and their integrity in control of the outcome on a property they no longer care about.
I tend to agree that I generally would want to do my own repairs, but IF I were a buyer and asking a seller to do repairs, I would specify the scope of work in the repair agreement.
Vague repair requests put the seller and their skill and their integrity in control of the outcome on a property they no longer care about.
We were selling a 10 year old house. Buyer came in with a laundry list of both legit and BS repair requests, “all work to be done by licensed professionals.” Among the items we agreed to was a minor electrical panel fix and to tighten the bolts on one of the toilets. Our son in law, a journeyman electrician, did the panel repair for the price of a nice steak dinner cooked on the grill. Mr. Dokie, in a brilliant post-retirement career move, became a Professional Toilet Bolt Tightener.
We were selling a 10 year old house. Buyer came in with a laundry list of both legit and BS repair requests, “all work to be done by licensed professionals.” Among the items we agreed to was a minor electrical panel fix and to tighten the bolts on one of the toilets. Our son in law, a journeyman electrician, did the panel repair for the price of a nice steak dinner cooked on the grill. Mr. Dokie, in a brilliant post-retirement career move, became a Professional Toilet Bolt Tightener.
"Professional Toilet Bolt Tightener."
A new vocation!
I noticed over the years that while some repair requests were ridiculous, many sellers emotional responses labeling reasonable requests as chiseling were quite unhinged.
That said, we for years have been in a very strong sellers market and that fact along with 5 figure non-refundable payments to sellers to get contracts tend to temper the ridiculousness of most buyers.
"Professional Toilet Bolt Tightener."
A new vocation!
I noticed over the years that while some repair requests were ridiculous, many sellers emotional responses labeling reasonable requests as chiseling were quite unhinged.
That said, we for years have been in a very strong sellers market and that fact along with 5 figure non-refundable payments to sellers to get contracts tend to temper the ridiculousness of most buyers.
You've painted a very broad brush there of buyers. It also infers how buyers are pushed into a corner not to expect reasonable requests to be handled by sellers. It needs to be noted that "reasonable" is subjective and defined in the mind of the buyers. Even the 10 page list of what some might consider minor issues can easily add up in major dollars to repair all of them or even a majority of the objectionable ones.
There used to be a time when Real Estate Salespeople actually assessed buyers abilities not just in whether they could obtain a loan but also what their expectations and financial abilities were to maintain that home. That aspect of the Salesperson's function is what was used to prevent those issues you describe. Has that aspect of the Salesperson's job died since those days?
You've painted a very broad brush there of buyers. It also infers how buyers are pushed into a corner not to expect reasonable requests to be handled by sellers. It needs to be noted that "reasonable" is subjective and defined in the mind of the buyers. Even the 10 page list of what some might consider minor issues can easily add up in major dollars to repair all of them or even a majority of the objectionable ones.
There used to be a time when Real Estate Salespeople actually assessed buyers abilities not just in whether they could obtain a loan but also what their expectations and financial abilities were to maintain that home. That aspect of the Salesperson's function is what was used to prevent those issues you describe. Has that aspect of the Salesperson's job died since those days?
How many buyers and sellers have you represented as their broker?
Read with a more open mind and you may interpret my post differently.
You may see my point as intended, as, "Most buyers in my market do not make ridiculous repair requests because they know they have little leverage and too much skin in the game to screw up the deal."
And, you may learn that the definition of "reasonableness" is greatly a function of the market dynamics of the moment.
I have seen buyers' agents forward the inspection report in full with "Fix Everything," or "Do Everything in the report." Such is certainly reasonably defined as "Unreasonable," and not very bright with a huge dash of "Unprofessional."
Never, never, never would I have the seller "fix" things before I buy.
Quote:
Originally Posted by Chas863
I ALWAYS offer to give a credit for legitimate repairs and let the buyer have it fixed (if he so desires) AFTER the closing. Most of the time, IMO, this nit-picking of "defects" is nothing but a negotiating tool to whittle down the purchase price.
*Sometimes* buyers can ask for a credit for significant repairs that need to be made, but MOST OF THE TIME when we ask for repairs, it is for items that will prevent closing, because they'll get flagged on appraisal. Bad roofs or windows, recalled electrical panels, sometimes buyers would love to wait until closing and do themselves, but the lender won't close until they're fixed.
It's been a long time since we've been in a market where buyers could ask for anything that wasn't really necessary.
*Sometimes* buyers can ask for a credit for significant repairs that need to be made, but MOST OF THE TIME when we ask for repairs, it is for items that will prevent closing, because they'll get flagged on appraisal. Bad roofs or windows, recalled electrical panels, sometimes buyers would love to wait until closing and do themselves, but the lender won't close until they're fixed.
It's been a long time since we've been in a market where buyers could ask for anything that wasn't really necessary.
I'm glad you said that. Items that will prevent a mortgage being placed nearly always have to be fixed (as you mentioned a bad roof or windows).
Ours were the piers on the wraparound porch being just stacked blocks and no foundation on under the furnace room. The agent explained to the seller that no one could get a mortgage until those were fixed but they could wait for a full cash, no inspection buyer. They were fixed.
*Sometimes* buyers can ask for a credit for significant repairs that need to be made, but MOST OF THE TIME when we ask for repairs, it is for items that will prevent closing, because they'll get flagged on appraisal. Bad roofs or windows, recalled electrical panels, sometimes buyers would love to wait until closing and do themselves, but the lender won't close until they're fixed.
It's been a long time since we've been in a market where buyers could ask for anything that wasn't really necessary.
That depends considerably on the type of loan being obtained and also the amount of down payment that the buyer is putting down. I don't fool with the high LTV type loans such as FHA or VA or the conventional loans that require PMI.
As a buyer, I'm nearly always paying cash. As a seller, my properties would typically appeal to the type of buyer who would have cash or at least a very considerable down payment. That's not to say that I ignore things that might be a serious maintenance or repair problem. Rather, I'm saying that when/if the inspection turns up anything that might be a serious problem, I'll have it checked out by a professional, if necessary, and then take that into consideration in my negotiations.
I've often found that the discovery of alleged "serious" problems when I'm buying is really just an opportunity for me to get the house at below market value because it greatly reduces the number of buyers who are able or willing to make the purchase. In other words, I have less competition and can drive a harder bargain.
How many buyers and sellers have you represented as their broker?
This is completely irrelevant to what you have stated in your post.
Read with a more open mind and you may interpret my post differently.
You may see my point as intended, as, "Most buyers in my market do not make ridiculous repair requests because they know they have little leverage and too much skin in the game to screw up the deal."
Your post was quite clear and needed no abstract interpretation.
And, you may learn that the definition of "reasonableness" is greatly a function of the market dynamics of the moment.
Again you infer that placing buyers in a locked condition of "5 figure non-refundable payments to sellers" is a tool used to force buyers to accept what they have instead of what they might have with their potential reasonable requests.
I have seen buyers' agents forward the inspection report in full with "Fix Everything," or "Do Everything in the report." Such is certainly reasonably defined as "Unreasonable," and not very bright with a huge dash of "Unprofessional."
Taken from the view of a seller's Real Estate Salesperson that may be the way it has become these days. I would expect that many prefer not to negotiate and just close the sale. As I have stated the industry has changed greatly over the decades and unfortunately not for the better.
Responses in blue above.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
