Hey, Gang - hope all is well!
One aspect of today's buyer-oriented real estate market, here in Chicago and elsewhere, is the absolute brazen attitude of many buyers toward inspection repairs.
You know what I mean, don't you, you Listing Agents?
Hard, extended negotiation after long seller market times. Seller frustration. Finally, success - an accepted offer. Everyone breathes a sigh of relief! Or should they?
Here comes the inspector - mostly minor issues arise. Reverse polarity here. A loose toilet there. Slow tub drains. Drafty old windows. Cracks in the sidewalk.
Real health and safety issues, right? (I'm being cynical, folks!)
And what to the buyers request? $500 to repair reverse polarity. $1,000 to repair a toilet. Complete replacement of front sidewalks. And the beat goes on and on and on!
When working with buyer clients, we've stressed over the years that only important HEALTH & SAFETY and STRUCTURAL ISSUES are worth raising. But what happens when our buyers ignore our suggestions and ask for big money to correct small issues? They often get it!
Last year, we had one of our buyers ask for a $10,000 credit to replace a 7 year old, still-serviceable roof. He got $7,500 - and was later upset that he didn't get the full Ten Grand! Another couple received $3,500 for concrete repair - one year later, his new sidewalk hasn't been touched! But he and his family took a nice vacation to the Bahamas last year. Hmmmmm!
A few times, sellers refuse to give in. The buyers, still emboldened, try the same strategy on the next house we help them find. And they expect us Realtors to fully support their unreasonable behavior!
We have a couple of transactions in progress now where the outcome is in doubt over this new crazy buyer dance - 2008. Resolution? Stay tuned!
Has this happened to you recently? How was it resolved? And, how has this changed your attitude about the selling-buying process in 2008?
Please share!
DEAN & DEAN'S TEAM CHICAGO
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Hi Dean,
I do work mostly with buyers and always try to stress that the price they agreed to pay is the price as the house is when they make the offer. If something major or a health and safety issue comes up I work with my buyer's to determine what if anything they should ask for. Often I will let them tell me what they would like to have the seller take care of or compensate for. I then go over the list with them to determine if the requests are reasonable. I remind them they are buying a used product and that our offer reflected the price we thought the house was worth in that condition. In most cases I let them think about the issues for a few days while we wait for water and/or radon test results. Most times the list has decreased during this time. There have been occaisions however that I have been embarassed by what they still ask for. I must of course present those issues and hope that the seller will respond in a way that does not blow the sale.
The way the inspector speaks with the buyers has a lot to do with how they act. At one recent inspection the inspector told the buyer that a bit of rust on the top of the hot water unit was an indication it would soon go. The buyers thought that they should ask for a replacement because it was bad. I had to really work to let them know that the hot water heater was currently working and it was not even that old. They did resist asking for what I am sure would have lost them the house.
Great post