Real Estate and Property Management Blog

Seller's credit is not the way to sell

Robert Hacker - Thursday, April 28, 2016

Products in good condition sell for more. Be sure to do repairs Before you list your home.

If you've seen any show on TV regarding "property flippers" - those that purchase a house for a discount and then sell for a profit - they typically all have something in common. The same can be said for the shows regarding flipping cars and even flea market items. That commonality they share is they rehab their product before they attempt to sell it. They do not offer a "credit" for items that need repairs.

Those shows probably would not be as entertaining to watch if that were the case because how interesting would a show be if they purchased a product, raised the price, but then, offered a credit to the buyer for the repairs that were needed? Even with TV entertainment value being considered, the main reason they fix, repair and rehab the product before they attempt to sell it is because it maximizes profits.

The same scenario applies to residential homes that homeowners sell. If a house is the most expensive investment that most people make than it would not be a stretch to say all homeowners are investors. At least in the regard to their home anyway. With an investment concept in mind it makes it easier to understand that it's better to have something be at its best possible potential before trying to find someone wanting to buy it.  The phrase "best possible potential" is used because in some cases the seller doesn't have additional funds to put into the home; however, most home sellers live in the home so, there is usually some time to put in a bit of labor where needed.

It's not uncommon to see a home on the market where the seller is offering a credit to the buyer. They know there are repairs needed but for some reason they still attempt to sell for market value but then offer something off the top to fix the issue. There are many reasons this is not a good idea and, other than the maximizing profit concept, another reason is the majority of those that purchase anything don't want to have to hassle with fixing it before they can truly enjoy it.

Having a property turn-key, meaning the home is move-in ready with no repairs or touch-ups needed, is the best way to appeal to a broader market of buyers. The more interest in a property from multiple buyers can lead to higher offers.

New paint and carpet alone can go a long way.

Take a step back from the home if necessary and try to look at it with a fresh set of eyes. If you were on the market to purchase and seeing your home for the first time how does it look? What can be better? Where can cost be limited with simple elbow grease? 

Curb appear and cleanliness go a long way too.

Happy Selling!

 

 

 


Contact Us

Ocean West Realty
31885 Mission Trail
Lake Elsinore, CA 92530

Business: 949-367-1940
Direct: 951-267-0165
Fax: 951-226-0171

CalBRE# 01524391

Copyright © 2017 Ocean West Realty. All Rights Reserved.
Website by PMW | Tenant Screening provided by RentScreener | Sitemap