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Financial Dings That Should Be Considered Before Selling...

By
Real Estate Agent with RE/MAX Compass 0524642

 

When someone considers selling their home, their initial interests are how much, how soon and what will it cost? Outside of the commissions and seller closing costs, there is much more to consider. The age of  a property typically provides many simple answers before you list your home.

 

Here’s a few things to consider when it comes to selling your home:

 

  1. How old is the roof?

  2. How old is the air-conditioner?

  3. Are there any obvious foundation issues?

  4. How old is the water heater?

  5. Are there obvious repairs that need to made?

 

 

 

A new roof for a 2,500 square foot home can average around $10,000.00. The cost to replace a 4 ton air-conditioner can easily cost $4,000.00, and a new water heater installed will cost you about $1,000.00. Foundation issues can be as little a $2,000.00 and can quickly escalate to much more, depending on the findings.

 

Too many sellers think these issues can be overlooked or even ignored when selling. While it is possible to negotiate the cost of  a broken water heater, buyers expect major items to “function as intended.” If the air-condition is 18 years old, but still blows cold air then odds are you won’t be installing a new unit for the buyer. But if it’s set on 72, and it’s 85 degrees in your house then be prepared to spend some money or have it deducted from your proceeds in one form or another. The same can be said for roofs. A 30 year roof in Houston might be able to exist on your home for 30 years but there is virtually no chance it’s protecting your home the way it was intended. A 30 year roof typically last 20-25 years. A buyer may run into problems when it comes to getting insurance if your roof is “too old.”  Additionally, the lender may also have an issue and call for a “lender required repair”, especially if the buyer is using a VA or FHA loan.

 

The point is, be smart about what you really know is wrong with your home prior to putting it on the market. Be realistic about your financial expectations. Talk to roofers, HVAC technicians, structural engineers, plumbers and professional Realtors prior to assuming if you sell for X you’ll net Y. Understanding the scenarios and how to negotiate repairs will help you set your own expectations.

 

Posted by
Greg Nino
Realtor
RE/MAX Compass 
Direct & Text 7 days a wk: 832-298-8555 
 
 
Realtor since 2004
Mediator & Arbitrator for the TX Assoc. of Realtors
Member of the Professional Standards Committee for the TX Assoc. of Realtors
Arbitrator for the Comptroller's office for the State of TX for Arbitration of Property Tax Values

 Member of the RE/MAX Hall of Fame & Platinum Club

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

Comments(13)

Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Very true that the problems can't be ignored just because you're selling.

Jul 29, 2015 07:34 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Greg - It is important to know and understand the age of your home in regards to maintenance and upkeep. Any buyer who is represented by an agent will take those things you mentioned into consideration when making an offer.

Jul 29, 2015 07:35 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Great points Greg. Getting a home inspection prior to putting a home up for sale is a fantastic idea as well. That will help the owner understand what needs to be addressed!

Jul 29, 2015 07:54 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Any home can sell "As Is" if it's priced correctly.  If not, it will sit and buyers will buy something else.  If the buyers can get an offer to stick, and the home has too many conditional issues, the appraisal may be refletive of the condition and the property may not qualify for the loan.  We have both "buyer and property" that need to qualify in our contracts.  The sellers don't have to fix anything prior to placing their home on the market.  If they want top dollar, they should prepare their home to be in tip-top condition. They're not obligated.   They can sell AS IS to a cash buyer.

Jul 29, 2015 08:43 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Knowing the age of these helps in prep for sale od the house.

Jul 29, 2015 09:05 AM
Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

You looked at my last inspection report, didn't you?

 

Jul 29, 2015 10:50 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

The REO business was not normal.  I am finding that condition is crucial when selling a home in this market.

Jul 29, 2015 11:29 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Excellent post that all professionals will analyze before a listing presentation is made. 

Jul 29, 2015 07:14 PM
DALIA KIBBY
One Sothebys International Realty - Cooper City, FL
Selling Florida Homes with Passion!

Buyers are very sensitive to the condition of homes they're considering...sellers must be aware of the importance of these items and their effect on the future sale of their property. Good Post!

Jul 30, 2015 01:41 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

It seems to me that repairing these items ahead of time would be cheaper in the long run than having a buyer deduct them from an offer. When there's plenty of time, the seller can get bids and contractor recommendations. A buyer is just going to have to guess at the cost, and will guess high. 

Of course, some sellers don't have the wherewithall to do it - but that's another story. 

Jul 30, 2015 02:15 AM
Theresa Akin
CORPUS CHRISTI REALTY GROUP - Corpus Christi, TX

All those are reasons to have a presale inspection. How long have you been residing and what repairs have you done since you've been there. Got copies of the warranties? At least with a presale inspection you will know what you maybe up against. If you don't have the funds to do the repairs say so. You may still walk away with a bit of cash.

Jul 30, 2015 07:48 AM
Bob Haywood
McGraw Realtors - Owasso, OK
BobHaywood.com

Getting sellers to take care of issues before listing can be a huge headache!  So frustrating!

Jul 31, 2015 11:41 PM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I normally recommend that sellers get a pre-sale home inspection to see what might need to be done, to avoid any surprises. Amazing what resistance there is to that! Such a low-cost exercise compared to what sellers are often willing to lop off the price when it gets closer to closing and the buyers' inspector reports, for example, that "the air conditioning is past its useful life" and needs to be replaced.

Jul 31, 2015 11:56 PM