Should What You Want To Do To The House Change Your Offer?

Hopefully the sellers have taken the condition (old carpet, old appliances, etc..) in consideration and priced accordingly.  In lieu of common-sense pricing, you can always attempt to negotiate based on condition.

However, just because the kitchen has white countertops, you want black countertops... doesn't mean you should adjust your offer to accommodate your decorating desires.

I like to have this talk with my buyers as we see the home. There is a difference to what is needed to what they want to change. I like to show them the value of the home as is, so they can make a good offer. Some homes are already priced low based on poor condition, some are over priced. If they are interested knowing what to offer and how much they want the home are all factors. 

Hello Bill & Liz,

This is a great topic to broach with buyers, and "it depends" is right! Sometimes the house is priced to reflect the need for changes already - so the seller has already taken that into account. It all depends on the situation!

I often get buyers that don't buy a house and schedule another one shortly after. When I ask the agent what happened on the first one, they say it had too many outdated things to do, and the sellers wouldn't come down on the price to cover any of the updates. We're talking paint, new cabinets, carpet, wallpaper, all cosmetic things. Nothing about electrical or plumbing or furnace, just cosmetic. It was crazy.

Excellent post, although it may not be the answer many buyers want to hear. Always comes down to asking questions to uncover what really is.

Often times, "it depends" is the best answer.  One indicator could be the days on market.  If the house has been on the market for a long time, maybe a lower price would make sense.  Of course, the seller might have other thoughts. ;o)

It depends, doesn't it? The devil is always in the details. I advise buyers not to change their number unless the inspection reveals something that wasn't obvious to the naked eye. And if there are competing offers, a free lowball "appraisal" wastes everyone's time. 

The premises introduced here is no myth...Get help before its needed....

As you stated in a comment, every house is a case by case review.

Good buyer issues that indeed only a knowledgeable agent with excellent knowledge of the local market can resolve (if buyers listen!).

If the home was perfect, it would have aleady sold, wouldn't it? Great post.

BAck when I was an agent we sold a LOT of homes on seller contracts. Part of the reason was that banks wouldn't lend on homes priced under a certain value. Part of it was that the houses needed work - and they were priced accordingly.

Every now and then there would be a buyer who wanted a low price or an "almost nothing" down payment because they were going to do a lot of work to the house. I would ask them if they planned on defaulting.

They'd say no, of course. Then I would explain that the seller wouldn't care what they were going to do to the house unless they thought they were going to get it back.

Hi Bill:

You've made some excellent points. Buyers often start to tick off all they don't like or want to change and substract lots of dollars from the price before making an offer. And somehow those estimates of what it's going to take are not based in reality. "It depends" really is an important consideration to discuss with someone who knows that market and what's selling.

Jeff

Exactly! If you want all new, then maybe you should look at new construction. You can't necessarily discount the price because you "want" to replace windows and doors, garage door, door opener, remove a tree, etc.

 wher can I get the car?

Oh we've all been through this scenerio before....and you are correct, IT DEPENDS.  So many pp say "I can do some updating" then touring the home, I hear "this is too much work" when in reality some paint and new carpet would do wonders!

Really insightful post. It used to be common for a buyer to want to offer $10,000 less because they wanted to update the kitchen. We are not seeing that so much any more, but you're right. It's so much more than that and you need a professional to help you navigate the waters.

Great Post.  And yes ... IT DEPENDS!  Thank you for your well written Feature post.  I will remember to bring some of these thoughts into consideration when approaching my next buyer asking the question.  Happens often.

Hi Liz and Bill,

Good post. I was going to say depends just by reading your title. Then as I read your post you hit the nail on the head. 

Excellent points to ponder for every market scenario.  Knowing that you might have to deal with those issues, JUST to get a home under contract, is good to keep in mind when writing an offer.  Nuff said!