Hey Lanre,
Wow now that picture does say the house is a mess. I think buyers look at a house that is messy or dirty and make the leap in thinking that there must be other problems. Hence low ball offer.
Definitely does not take $10,000 to clean up the average home. I've spent just under a $1000 on a really nasty foreclosure for dumpster and labor. This post is interesting. Suggest. Continued success to you!
I suggested your post because I think it is gonna be one of those that receive a lot of discussion.
It is a great reason to pass on the house or make a lowball offer.
Nobody wants to buy work. Many of my buyers would turn and walk out. If your house is that filthy, what makes me think you have ever changed an A/C filter? Performed any maintenance whatsoever? What damages are concealed under the dirt?
If you want a great offer, present your house as a great house. People don't pay full price for a pig sty of a dump. You want a good offer, clean the place up.
You on fire? Read it. and I agree with some of it, but also disagree with some of it. The listing price is only a good listing price if 1. if someone is will to pay for it, and 2 if it will appraise (for a mortgage) The real question is if it is priced right , how long has it been on the market. If you tell me more than 30 days , then it is not priced right. People will look at the house an assume, yes I do not like that word, but they will and see a dirty home and think the rest of the house is not taken care of also. I always try to present the house in as perfect shape that we can get it. If the home owner is not willing to get the home ready that way, then I will tell them that people may have these thoughts and it will show in their offers.
Lanre ~I understand and empathize with your frustration as the listing agent. I too wonder how agents can submit offers 20 - 30% lower than fair market value but as we well know value is determined by what a buyer will pay and a seller will accept. I do encourage all sellers to clean, touch-up & declutter or I explain that the buyers will be submitting lowball offers.
I agree a little bit with Robert which is that if the house is dirty, you feel that other things are not taken care of. Its important for a house to look presentable when being shown. I agree with you that its not a reason to submit a low ball offer, but its not a bad start to offer something really low just to see if there is a bite. Your seller can always counter offer to something more reasonable and/or counteroffer at the listing price again to show you are not budging. I think that if the house is a mess, then it makes sense for a low offer to be submitted. Perhaps not as low as you'd like, but it almost has to be expected that a low offer will be coming in. Good luck on the listing. Perhaps that will be a lesson for the seller to clean up a little if they expect to sell the house.
I hear your frustration, but I'm thinking this is a Perception is Realty situation - buyers prefer clean houses, so you can fight them about it, or you can realize that you aren't going to change them and do your best to give the market what it wants.
And I agree that a dirty house puts all kinds of doubt in a buyer's mind that it's been well-maintained, not to mention the fact that they simply aren't going to fall in love and be willing to pay what they consider top dollar. I'm guessing buyers who make low offers on dirty houses aren't doing so because they think it will cost them $10,000 to clean it up, but rather because they aren't emotionally attached. Yeah, they realize the house suits their needs, but they don't care much if they lose out on it because they aren't in love.
Perhaps taking a different approach with the seller might work - explain to the seller that their dirty house may very well cost THEM $10,000 and let them make the decision if they want to spend $500 cleaning it up or not ;-]
Lanre, I hear ya! I agree with Jennifer and a couple of people above. Buyers are probably thinking that the house has major problems. If the picture above truly represents the condition of the house, you will probably get a few more unacceptable offers. I would suggest having someone clean up a bit. I am sure the offers will improve. Plus, there is no way anyone will be able to conduct a home inspection on this property in its current condition. Best of Luck!
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