Do This Before You Sell
Knowing what repairs to make before you put your house on the market requires expert knowledge. Some repairs can net sellers thousands more at the close of escrow, others can be a waste of time and money. Repairs properly done will help your home sell faster, and for more money. Having flipped many properties myself, I can show you how to make Essential Repairs that will affect your sale in a positive and financially lucrative way. I will even give you my list of proven vendors including electricians, plumber, drywaller, roofers, handyman etc. I have been referring many of these licensed contractors to my clients for over 20 years.
Think about your home-selling strategy. Do you have one? If you were selling your car...wouldn’t common sense tell you to have it washed & waxed, vacuumed, and fill up the gas tank? Well, that same common sense strategy is used by smart home sellers too! When you make the repairs upfront, you can control the costs.
Let me share with you something that could come back to haunt you if you don’t make these Essential Repairs. Ready? Good, because you need to be aware of a ridiculous “game” that some agents play when representing their buyers.
Here’s how it works...
They write an offer on your house. Once you’ve accepted their offer and you’re in escrow, they’ll have a traditional home inspection completed by a licensed inspector. Now, let’s say the inspector reports to the buyer that your home was built prior to 1978 (possible asbestos and lead paint exposure), the water heater is old, the heater is old and the roof is nearing the end of its useful life. Even though all homes are sold AS-IS per the California Purchase Agreement (RPA-CA), the buyers’ agent will still come back armed with the inspectors report and request a ridiculous amount to fix these items called out in the report. Their Request for Repairs will make it sound like the lead paint and asbestos are going to kill the new buyers and the heater and water tank are about to explode, and the roof is going to cave-in!!!
Sellers often get buyer’s request for repairs of $20,000-$50,000. It boarders on extortion if you ask me, because the request for repairs is conveniently given to the sellers on the same day the buyers’ contingency release is due. How about that?!?! Without good representation, most sellers will go ahead and give-in to the concession because they’re afraid to fall out of escrow. This puts the seller in a very awkward position. If the seller declines the concession (Request for Repair), then the buyer might cancel escrow and the seller just wasted 17 days of market time. Furthermore, the seller will have to find a new buyer, and they must still disclose items found by the former buyers’ inspection. What a mess huh?
Absurd you say? Of course it is! So why is this happening? Well, most agents are taught this strategy because it’s far easier than learning how to become a great negotiator. They don’t begin the process with the end in mind. It’s the easy way out. And when two agents get together...concessions are unfortunately routine.
Let’s get back to our conversation on making Essential Repairs. In a nut shell, if you make the repairs yourself you can:
1. Control the cost of the repairs with a proven team of licensed vendors.
2. Disarm “rookie” agents of their lame tactics.
3. Your home will sell faster and for top dollar.
In closing, NOTHING revealed on the buyers’ inspection should EVER be a surprise to the sellers or listing broker. Begin the home-selling process with the end in mind.
Ask me to come over to your house and do a free room-by-room audit and recommend some Essential Repairs. I guarantee your house will sell faster and for a lot more money.
See you in escrow!
Mike Daniels
