Should the Seller Pay For Your Future Updates?

By
Real Estate Broker/Owner with Waters Realty of Brevard, LLC BK3064647

I showed a house recently where the prospective buyers liked the "blank slate it offers."  The blank slate refers to this property's very neutral decor (a lot of white spaces).

The prospective buyers started adding up the costs to make the house like they want (make it their house, I suppose).  Experience has shown me that that many times buyers like to talk through the process of future changes.

This particular house is less than fifteen years old so it is not a 1960s structure in need of a half century update.

Their ideas for "desired" change did include some very nice sounding options.  I think the dollar amount kicked around was close to $40,000.

It is always nice when a prospective buyer talks enthusiastically about becoming an owner and "makes a house their own."  In this case the discussion turned to subtracting these changes from the listing price.

BUT, DESIRED FUTURE CUSTOMIZATION CHOICES SHOULD NOT BE AT THE SELLER'S EXPENSE.

The mathematics of a home purchase does not mean take the listing price and then start deducting the changes you want to make in the future.

When a home is listed at a price that is reflective of the market, the competition, and its current condition, there may be some room to negotiate the final purchase price.

BUT, OPTIONAL CHANGES SHOULD NOT BE DEDUCTED FROM THE LISTING PRICE.

This is not to say that repair issues that impact function or performance should not be addressed in the offer price or concessions requested (such as a flooring allowance).

Still, the mathematics of a home purchase offer are based things such as: the comps (recent sales, other similar properties on the market), motivation, time line and factors such as ability to purchase/finance options.

Of course, in the end, buyers can make any offer they desire.  But, in a seller's market with limited choices available, serious buyers rarely try the low ball route!


Now I wonder if a car dealership would accept an offer on a slightly used car based on the updates I want to do... paint job, some new tires, maybe an engine tune up...

Have a question about buying a home in Florida?   Call or text me at 321-693-3850.

agent@moving2brevard.com

 

Posted by

Gary L. Waters, is a Florida licensed real estate broker at  Waters Realty of Brevard, LLC, Melbourne, Florida serving Florida's Space Coast including the cities and surrounding communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and Satellite Beach.

 Call or text me directly at 321-693-3850.

 

 

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Rainmaker
1,372,641
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

I explain to buyers in this case that if the seller is selling a Volkswagen at a Volkswagen price, it is unfair to deduct from it the changes needed to make it a Mercedes.  Buyers can get goofy! 

Dec 05, 2017 05:30 AM #1
Rainmaker
2,102,490
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Hi Gary... if a home is priced right for condition any changes to that condition are the lookout of the buyer. I like Lise Howe's analogy.

Dec 05, 2017 05:37 AM #2
Rainmaker
2,448,172
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Been there and heard this from buyers Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC and the outcome is often that another buyers offer who was rational, got their offer accepted instead of the crazy low one they made. 

Dec 05, 2017 06:06 AM #3
Rainmaker
2,543,644
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Ahhh, don't you just love that?   NOT>..hopefully they become reasonable!

Dec 05, 2017 06:15 AM #4
Rainmaker
361,525
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good morning Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC 

Thank you for sharing your great information with us at Active Rain.

Have a great day 12/05/2017. 

Dec 05, 2017 06:27 AM #5
Rainer
51,723
Golden1 Agents
San Mateo, CA

Thanks for sharing.

Dec 07, 2017 02:40 AM #6
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Rainmaker
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Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC

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