8,125,230
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.
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Wendell Melville
Jacksonville, NC
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Jillian La Rocque
St Thomas, VI
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Paul Durry
Lawton, OK
-
Kwee Huset
Venice, FL
19,825
Most effective would probably be performing the repairs. Second would be lowering the price and third would be the credit.
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sandy straley
Salt Lake City, UT
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Nancy Robinson Ranked ...
Royal Oak, MI
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Eric McLellan
Frederick, MD
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Paul Durry
Lawton, OK
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Roy Kelley
Gaithersburg, MD
75,959
Lower the price ... a repair allowance gives the impression that the price does not make allowance for the true condition of the home.
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Wendell Melville
Jacksonville, NC
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Suzanne Strickler
Havertown, PA
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
1,677,946
Lower the price.
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
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John McCormack, CRS
Albuquerque, NM
921,504
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.
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Paul Durry
Lawton, OK
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Greg Large
Grove City, OH
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Lyn Sims
Schaumburg, IL
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Michael Jacobs
Pasadena, CA
1,749,577
Lower the price since the transfer taxes will be lower.
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Kwee Huset
Venice, FL
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
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John McCormack, CRS
Albuquerque, NM
1,562,467
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.
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Paul Durry
Lawton, OK
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Roy Kelley
Gaithersburg, MD
617,985
Winston,
In real life, lowering the price seems to work best.
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Wendell Melville
Jacksonville, NC
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
384,519
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..... :)
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Wendell Melville
Jacksonville, NC
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Candice A. Donofrio
Fort Mohave, AZ
931,308
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.
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Paul Durry
Lawton, OK
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Lyn Sims
Schaumburg, IL
4,800,282
Lowering the price would be the most effective.
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Kwee Huset
Venice, FL
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Roy Kelley
Gaithersburg, MD
5,584,478
lower the price...
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
1,153,799
I'm always in favor of the highest allowable credit in order to keep values in place as long as the appraisals hold true.
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
1,614,223
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.
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
74,507
Lowering the price of the listing may be more effective than offering a a repair allowance incentive.
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
4,434,227
Just lower the price.
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Roy Kelley
Gaithersburg, MD
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Michael Jacobs
Pasadena, CA
1,869,168
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 .....
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Candice A. Donofrio
Fort Mohave, AZ
113,002
1,098,417
I prefer to get an estimate and give a credit at closing..
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Roy Kelley
Gaithersburg, MD
280,599
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.
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Roy Kelley
Gaithersburg, MD
1,466,257
Winston Heverly From the seller's perspective a repair allowance incentive. From the buyer's perspective negotiating a lower price.
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Roy Kelley
Gaithersburg, MD
4,721,936
6,662,159
8,033
It depends on the repairs needed. If they will cause appraisal issues you need to do the repair.
4,125
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.
129,748
I would do the repair. . . most buyers and agents do not have the imigination to see beyond what the home has to offer . . . . . .
402,032
Price the listing to reflect market value. No one searches the MLS for credits or allowances; they search by price.
1,580,443
I find most buyers like the allowance as a credit. Gives them cash in hand to make repairs.
519,824
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.
162,119
282,068
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.
1,260,083
Often the agent suggested gets clubbered with all that concession....
Watch out.
Sam Shueh
920,253
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.
28,534
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.
1,097,545
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.
431,823
83,481
homes priced right for condition will sell. it has to be found. price it right or it will get overlooked every time
3,074,289
280,448
259,417
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.
115,482
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.
1,535,414
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.
533,972
469,575
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.
111,746
42,670
3,986,473
637,534
Lower the price. In California, your sales price is what you get taxed on over the years.
2,840,724
979,796
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.
1,085,870
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.