An issue that impacts more and more real estate transactions today is the question of defects. In times past, i.e. in an appreciating market, buyers had a tendency to look past the defects or shortcomings of a property with the attitude that “a raising tide lifts all boats”. Mechanical problems, cosmetic issues, functional obsolescence, were all issues that could be dealt with, or not, after the purchase. The overriding issue was that the property would be worth more, and obviously cost the buyer more tomorrow than it did today. In our current environment, where nearly every property has lost ground versus, at worst, what the seller actually paid or, at best, a previously perceived valuation, and where the prospect moving forward is for a flat or only slightly improving market every property shortcoming or defect has the potential to impact market time, sales price and or the probability of closing once a deal has been put together. Living in a house it is easy to look past, or not consider at all, defects. The orange shag carpet is worn and dirty but I’m not in a position to replace it. Water leaks into the corner of the basement when it rains particularly hard but I just mop it up and it does not bother me. The kitchen range is avocado green and twenty five years old but it is perfectly functional. The shingles are cracked and curling but the roof hasn’t leaked, yet. Its interesting , however, that when we leave our own house and and venture out to look at another with the thought of moving suddenly what is considered an inconsequential issue at one’s own house simply can not be accepted in another. And why should it be when you can go down the street and find a nearly identical house for sale where the seller has addressed any such shortcomings.
Obviously not every house is new or in like new condition and a certain amount of wear and tear can and should be anticipated depending on the age of the house. One problem, however, for sellers is that in many cases buyers simply will not consider a property that, in their mind, needs any level of work. As simple as the tasks might seem these buyers are not interested, and more often than not, do not have the funds available to be removing wallpaper and changing out dated light fixtures let alone dealing with a furnace, water heater or roof that is at the end of its useful life. The situation gets even more challenging when the buyer does not, in viewing the house, fully recognize the scope of the issues that may exist . More often than not a buyer will elect to employ a professional whole house inspector having successfully negotiated a purchase agreement. Should the inspection reveal issues that the buyer had not been aware of or fully considered they will likely seek financial consideration from the seller or ask that the seller make repairs. If an agreement can not be reached between the parties it is not uncommon that the buyer will exercise their option to walk away and the seller is left back at step one. Even if the buyer is okay with the condition of the property certain issues such as a limited life expectancy of the roof or the presence of chipping and peeling paint can result in lender requirements that must be addressed one way or another before a sale can be consummated. Offering a house for sale in “as is” condition can sometimes seem like a logical strategy but it can backfire with the buyer perspective assuming that either something dramatic is wrong with the property or that it is a distressed sale situation and can limit the pool of buyers that you can attract something that you really can not afford in this market.
So what is a seller to do? Number one, keeping your house in good repair, catching problems before they get out of hand and are more costly to deal with than need be makes life easier when it comes time to sell. When that time comes engage a competent real estate agent to help you to review the property and make suggestions as to where your money and effort, depending on the availability of both, can be best spent to repair or improve the property making it as attractive as possible to a potential buyer. An always critical factor is to disclose, disclose, disclose. Not only is is required by law but it is in your best interest to reveal all that you know about your property. A small issue that only comes to the surface after an purchase agreement has been reached can suddenly be magnified beyond all proportion. If you are uncertain about the condition of your property a pre-inspection by a qualified inspector can be a very good option. Better for you to learn of your property’s deficiencies and have a chance to deal with them before you offer it for sale than to have them rise up as a negotiating challenge after the fact. In any case an honest evaluation of the condition of your property as part of your overall marketing strategy is critical. Buying or selling? Lincoln or Omaha. Call us or drop us an email message today.
