Winston Heverly, GRI, ABR, SFR, CDPE, CIAS, PA (Winston Realty, Inc.)

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Rainmaker
6,858,263
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Reducing the price is the best solution. However, you need to be alert for repairs that will need to be completed before settlement to facilitate the needed mortgage financing.

Nov 05, 2015 04:12 AM
Rainer
19,725
Eric McLellan
Keller Williams - Frederick, MD
Realtor Serving all of Greater Frederick

Most effective would probably be performing the repairs.  Second would be lowering the price and third would be the credit.

Nov 05, 2015 03:36 AM
Rainer
75,859
Jillian La Rocque
St Thomas, VI

Lower the price ... a repair allowance gives the impression that the price does not make allowance for the true condition of the home. 

Nov 04, 2015 10:40 PM
Ambassador
1,598,436
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Lower the price. 

Nov 04, 2015 10:11 PM
Rainmaker
908,513
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Price should be reflective of condition.

I do not recommend a repair allowance incentive. That makes no sense to have the seller unilateral negotiate with them-self.

You hold that card UNTIL a buyer actually says, "I can't stand that carpet!" 

Be aware, that buyer may fully intend to replace all the carpet in any home they buy. Don't give away the homeowner's equity.

Nov 04, 2015 09:12 PM
Rainmaker
1,659,405
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Lower the price since the transfer taxes will be lower.

Nov 04, 2015 09:11 PM
Rainmaker
1,562,074
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

A repair allowance incentive.  Any cash / cash credit going to the buyer as an "allowance" is going to raise eyebrows with the lender, no?!?   Price the house to reflect condition, fair market value and it's sold AS IS.

Nov 05, 2015 04:04 AM
Rainmaker
611,619
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Winston,
In real life, lowering the price seems to work best.

Nov 04, 2015 10:27 PM
Rainer
384,369
Paul Durry
Collateral Solutions Inc - Lawton, OK
Former Broker Associate, CDPE, CIAS, CHMS

I say if the seller can afford a home inspection before placing it on the market, that would give them a great heads-up of the condition. This will also help give  decide if repairs are done before listing, lowering the price to match the repair cost, or lastly offer a repair allowance to match repair cost. There are numerous other avenues to a solution..... :)

Nov 05, 2015 10:48 PM
Rainmaker
860,815
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Toss up- normally I would say lower price, but so many people want turn key move in ready properties these days, and they don't want to move in and then have to find contractors to paint and do repairs. Just depends on what type of repairs are needed.

Nov 05, 2015 08:08 PM
Rainmaker
4,799,651
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Lowering the price would be the most effective.

Nov 05, 2015 02:27 AM
Rainmaker
5,573,163
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

lower the price...

Nov 05, 2015 01:04 AM
Rainmaker
1,126,521
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

I'm always in favor of the highest allowable credit in order to keep values in place as long as the appraisals hold true.

Nov 04, 2015 11:20 PM
Rainmaker
1,320,330
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Thanks Winston Heverly you actually asked the same question I was going to today. I have a great house coming out but it has a cash poor owner with roof & termite concerns. Lower the price seems to be unanimous.

Nov 04, 2015 10:45 PM
Rainer
74,407
Michael Scruggs
UTR Texas-Realtors - Houston, TX
ABR, CNE, TAHS

Lowering the price of the listing may be more effective than offering a a repair allowance incentive.

Nov 04, 2015 10:19 PM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Just lower the price.

Nov 04, 2015 09:13 PM
Rainmaker
1,748,888
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Neither to me are effective. I think that offering the allowance 'glaringly' points out that mauve carpet. So that wouldn't be good for buyers that don't want work - they'd X you right out of the running.

Lowering the price the buyers will take 3 times what it costs for that mauve carpeting not what the real cost is.

Devils advocate today I guess .....

Nov 05, 2015 09:46 PM
Rainer
112,897
Vera Gonzalez
RE/MAX Suburban, Inc. - Sterling Heights, MI
Gonzo For Real Estate

Lower the price. 

Nov 05, 2015 03:26 AM
Rainmaker
1,044,142
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

I prefer to get an estimate and give a credit at closing..

Nov 05, 2015 03:03 AM
Rainmaker
280,499
Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

He with the most information wins.  Have bids of what the repair would cost and be willing to show them to a prospective buyer.  And have the seller offer a credit for those things.  Buyer gets the QC on the job and seller doesn't have to come up with the money to fix it. 

Nov 05, 2015 02:45 AM
Rainmaker
1,465,977
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Winston Heverly From the seller's perspective a repair allowance incentive. From the buyer's perspective negotiating a lower price.

Nov 05, 2015 02:06 AM
Rainmaker
4,212,896
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Price.  The right price.  

Nov 05, 2015 01:46 AM
Ambassador
5,613,475
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

fixing the issue.

Jan 22, 2019 08:42 PM
Rainer
8,033
Reid Wyly
Carolina Estates Realty - Charleston, SC

It depends on the repairs needed. If they will cause appraisal issues you need to do the repair.

Nov 10, 2015 03:23 AM
Rainer
4,125
Mariette Gagne
MarketPlace Realty, Inc. - Hickory, NC
Residential and Inn Broker in Hickory, NC.

Since we have a list of repairs after the home inspection,   I usually get a few estimates for repairs and suggest a credit at closing to cover the cost of repairs.  This has worked out  well for all my sales so far.

Nov 09, 2015 03:55 AM
Rainmaker
129,638
sandy straley
Rindlesbach Homes - Salt Lake City, UT
Selling Homes for over 40 Years

I would do the repair. . .  most buyers and agents do not have the imigination to see beyond what the home has to offer . . . . . .

Nov 08, 2015 05:44 AM
Rainmaker
397,250
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

Price the listing to reflect market value.  No one searches the MLS for credits or allowances; they search by price. 

Nov 08, 2015 03:54 AM
Ambassador
1,569,453
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I find most buyers like the allowance as a credit. Gives them cash in hand to make repairs. 

Nov 08, 2015 01:42 AM
Rainmaker
514,474
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

I'd suggest repairing the issues first, price second, allowance third. People think they have vision to see past worn carpet, rough paint or broken issues, but most don't.  Those that do will want more than what it takes to resolve the issues as compensation for their troubles. 

 

Nov 07, 2015 04:11 AM
Rainer
162,069
Greg Riley
Prudential AllStar Realtors - Rio Rancho, NM
e-PRO,RECS, Rio Rancho Real Estate

It's always about Price VS Condition Lower the price!

 

Nov 06, 2015 11:57 PM
Rainmaker
281,868
Nancy Robinson Ranked #6 in MI
Century 21 Town and Country - Royal Oak, MI
#11 Century21 Realtor in the US, #16 in the World

Reducing the price is generally Best for the seller,, Lower commission  transfer tax . More likely to get a favorable appraisal,  ect...  for the buyer concessions are better, Using other peoples money is frequently better than using ones own.

Nov 06, 2015 12:00 PM
Rainmaker
1,172,514
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Often the agent suggested gets clubbered with all that concession....

Watch out.

Sam Shueh

Nov 06, 2015 08:00 AM
Rainmaker
838,712
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Lowering the price might attrack more buyers, while a repair allowance might discourage buyers. The best way would be to do the repairs, then list, if possible.

Nov 06, 2015 06:02 AM
Rainer
28,484
Matt Keough, New Castle County, DE
Patterson-Schwartz Real Estate - Wilmington, DE
Matt Keough Agent New Castle County Delaware

Lower the purchase price.  Back in the day, you could have a transfer of funds outside of the loan process, which was the "norm".  No longer, lenders need to be aware of anything of value, even replacing carpets since it adds value to the home after being under contract.  Any value, send the entire loan back to underwriting.

At least it does in this area.

Nov 06, 2015 01:00 AM
Rainmaker
924,060
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I would like Door 3, repair the item(s) -- but without that choice, I would say reduce the price, clarify that it is an 'as is' deal and then expect buyers to STILL come in below that.

Nov 06, 2015 12:41 AM
Rainmaker
431,673
Suzanne Strickler
Realty Mark Associates - Havertown, PA
School is never out for the Successful.

Lower the price. In this economy every dollar has to count.

Nov 05, 2015 11:51 PM
Rainer
83,431
Amy Gutschow
RE/MAX - Sheboygan, WI
Professional Real Estate

homes priced right for condition will sell.  it has to be found.  price it right or it will get overlooked every time

Nov 05, 2015 11:17 PM
Rainmaker
3,070,584
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Price it correctly to begin with.

Nov 05, 2015 10:31 PM
Rainer
258,237
Richard Robibero, e-Pro, ABR, SRS
Panorama R.E. Limited - Toronto, ON
Selling Your Home as if it were My Own!

Lowering the price.

I don't get into repairs. Asking for problems.

Nov 05, 2015 09:56 PM
Rainmaker
259,167
Lesley Wilson-VanGoethem
Innovative Realty Solutions Group - Winter Springs, FL
Residential Real Estate Broker Associate

Lower the price, and include a memo that price reflects repairs needed. Ensure that without the repair, finacing can still work, or you are shootng yourself in the foot.

Nov 05, 2015 09:27 PM
Rainmaker
115,420
Jeanne Feenick
NextHome Premier - Basking Ridge, NJ
The Agent you choose REALLY does make a difference

Agree with lowering the price. Generally a repair or decorating incentive is hidden in the description field and if the price is off, you won't even get their attention let alone drive them to read the description.

 

Nov 05, 2015 09:09 PM
Rainmaker
1,413,494
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Negotiate repairs during escrow as closing costs.  Never give an allowance as part of the listing and price the house according to it's condition.  That's what I would do.

Nov 05, 2015 11:54 AM
Rainmaker
530,685
Gary Coles (International Referrals)
Venture Realty International - Las Vegas, NV
Latin America Real Estate

Lower the price.

Nov 05, 2015 11:04 AM
Rainmaker
468,799
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

There are exceptions for lower the price typically helps get the home sold faster - the price is the "bait" to attract buyers not the fine print.

Nov 05, 2015 08:28 AM
Rainmaker
111,746
Anthony Saunchez
Campa Properties - San Bernardino, CA
How can we be of service

A lower price is the simpliest way to go.

Nov 05, 2015 08:26 AM
Rainer
42,470
Fred Hafdelin
Weichert Realtors - Mountain Lakes, NJ

Lower the price to reflect the homes value in its present condition.

Nov 05, 2015 07:10 AM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

For my liking the repair allowance is best  most of the time

Nov 05, 2015 05:48 AM
Rainmaker
586,107
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Lower the price. In California, your sales price is what you get taxed on over the years.

Nov 05, 2015 05:31 AM
Rainmaker
2,669,213
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Both can go to work and produce good results. Pick one and go to it!

Nov 05, 2015 05:31 AM
Rainmaker
912,565
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Winston - Get an estimate for all the repairs and have the seller just lower the sales price. That would be the cleanest, easiest, and most effective way to deal with repairs.

Nov 05, 2015 05:09 AM
Rainmaker
1,018,970
Kwee Huset
Kwee Huset Realty - Venice, FL
Venice Florida Homes For Sale

Lower the price , seems like more affordable also helps to reduce closing expenses. In Florida state these 3 things are base on the purchase price:

1. documentary stamps on the deed.  2. title insurance premiums. 

3. agent's commissions. 

Nov 05, 2015 04:55 AM