Property Defects May Kill Sale
- 15.04.2008
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Property defects may turn buyers away - Savvy sellers hire home inspectors, address issues
The home selling environment has changed dramatically in the past year. Two years ago, in the heat of the sellers market, record-low inventory meant multiple buyers were bidding on properties. It was a different story then.
Now, there are fewer buyers out there. You want to keep them once you get them.
The top three turnoffs for buyers are:
1. High priced items
If the roof needs to be replaced, for example, that might turn off the buyer.
2. Unexplained conditions
If there are signs of ground settlement problems, that may scare a buyer away because of the unknown costs associated with fixing it. Here is where a seller can be proactive and hire a structural and maybe a soils engineer to try and identify the cause of the problem to give the buyer options as to what can be done to remedy it.
3. Safety issues
Electricity is something that concerns a lot of people. It’s a major safety issue. Sellers might consider updating their wiring to a grounded system if their home was built before the 1970s.
Here are some of benefits to conducting the inspection prior to the listing.
Identify defects and make repairs ahead of time. By identifying possible defects early on, you as a seller are in a position to handle repairs prior to listing, making the listing more attractive and the property more saleable. This may mean more money to the seller and a faster sale. Making repairs ahead of time will limit objections over defects during the negotiations. If the seller elects not to repair certain defects that turn up in the inspection, they can disclose the defects to potential buyers in the disclosure documents. State disclosure laws vary, and sellers should consult with their attorneys on state disclosure laws.
Aid as a pricing tool. Having a completed inspection report from a certified inspector will help you (the seller) arrive at a realistic list price. If you find out, for example, that your HVAC system shows significant wear and tear and will need to be replaced before the next winter season, you should take that into consideration when pricing your home for sale.
Provide a feeling of confidence to potential buyers. With a clean inspection in hand after viewing a property, potential buyers may feel more comfortable in moving ahead with an offer. When a buyer can see there are no major defects in the property to be addressed, it is easier for them to determine how much they can comfortably spend on the house. If there is a problem that needs to be addressed, they buyers can write an offer that will reflect the cost of the needed repairs, or they can ask the sellers to remedy the defect.
