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Buyers about a property: “Needs a lot of work...” What’s “a lot?”

Real Estate Agent with Alain Pinel BRE 01367196

July 14, 2012 09:08 AM

Buyers about a property: “Needs a lot of work...” What’s “a lot?”

There's a show on HGTV called “Love It or Leave It” where homeowners are debating whether to renovate existing home or buy another that will meet their requirements. What was so interesting is that on this episode, no matter what room, or property the buyers saw, the husband kept saying “It needs a lot of work.” And he was merely reacting to the colors of the rooms.

This buyer sounds like someone who will always be challenged to have a vision.

But the big question is, what exactly do buyers mean by "needs a lot of work"

It’s relative, and totally depends on the buyer’s budget, willingness and ability to undertake projects.

Most buyers will not have a clear idea of how much it costs to repair/replace.

Sellers are always advised to do as much as they can to present the house in the best possible light. Peeling paint, broken light fixtures, rusty hardware, stained carpets, unkempt landscaping all add to the buyer’s view that a property “needs a lot of work".

It also helps to stage a home --- another very helpful way to highlight the property.

Examples of fixes -- easy, or hard?

I've represented many first time buyers in Alameda County and Contra Costa County --- and they are quick to say a property “needs a lot of work” because they have very limited knowledge of what it takes to fix up a house on a budget.

Repainting may be simple and easy for people who have basic knowledge of what it takes. Or it could be challenging for someone who has never painted before, and who may not even understand the concept of using a primer.

Replacing stained carpet or refinishing wood floors could be a huge expense (hence, “needs a lot of work”) for people who are looking at homes at above their budget range and don’t have any reserves for repairs or upgrades.

If the furnace doesn't heat up, the water heater is at its last legs, roof needs to be replaced, windows and doors are broken, floors and walls have holes....then yeah, that property definitely “needs a lot of work”.

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Adrian Willanger

206 909-7536 AdrianWillanger-broker.com - Seattle, WA

Profit from my two decades of experience

Pacita, I just walk into the house and Love or it or Leave it was on. I agree first time buyers really have a hard time trying to figure out how much things will cost to upgrade, replace or repair. Give them a few homes and they'll have it figured out.

Jul 14, 2012 09:12 AM

Kathy Sheehan

Bay Equity, LLC 770-634-4021 - Atlanta, GA

Senior Loan Officer

I would be more concerned with making any necessary repairs that might be required by the appraisal process.

Jul 14, 2012 09:27 AM

Carla Muss-Jacobs, RETIRED

RETIRED / State License is Inactive - Portland, OR

The "needs a lot of work" homes can be the best deals -- if they're priced correctly, and under market. DO THE WORK and reap the rewards. Most buyers don't though. Pity.

Jul 14, 2012 09:58 AM

Mel Ahrens, MBA, Kelly Right Real Estate

Kelly Right Real Estate - Hood River, OR

Customized Choices for your Real Estate Needs

It takes just the right buyers to take a home needing a lot of work. If they are the right folks, they may get an incredible value. We're seeing far more people (including us!) who want a home to be "move-in ready" and updated. The buyer's market of the past few years almost demanded that. As seller's markets are re-emerging, this may change.

Gretchen

Jul 14, 2012 10:35 AM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

Floors and paint or easy to deal with, and at least paint is not expensive, yet so many buyers balk at ugly paint and dirty floors.

Jul 14, 2012 10:47 AM

Jenny Durling

L.A. Property Solutions - Los Angeles, CA

For Los Angeles real estate help 213-215-4758

I am so tired of that expression. Some people simply have no clue what 'alot of work' actually is! They say they want a 'fixer' but they are really looking for place that needs paint and carpet!

Jul 14, 2012 12:36 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Adrian -- somebody must have told these buyers that if they say the property needs a lot of work, that they can lowball their offer

Kathy -- and even then, some appraisers (for FHA, for example) only wants peeling paint areas to be repainted.

Carla -- you're right. They could be the best deal, if the people knew the real value behind these properties needing a lot of work. That's why flippers do so well -- they have vision.

Gretchen -- in my neck of the woods, it's now a seller's market.

Gene --- perception is reality. People see peeling paint and they think the house is falling apart.

Jenny --- I'm tired of this complaint, too, especially when I can see the buyers' perception of a lot of work is mere cosmetic repair, and nothing major or structural.

Jul 14, 2012 02:03 PM

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366

Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA

General Contractor, Dry Rot and Water Damage

We use an expression, "Everything is easy, some things just take longer to do".

I would consider "a lot" to mean a contractor is needed because the owners can not or will not do the job.

Thanks Pacita.

Jul 14, 2012 05:24 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Tom -- How true. Easy for me is a simple paint job. EVerything else, I hire a pro.

Jul 14, 2012 05:34 PM

Sally K. & David L. Hanson

EXP Realty 414-525-0563 - Brookfield, WI

WI Real Estate Agents - Luxury - Divorce

It's an excuse and a one comment covers all my objections kind of reaction...if we have a listing that has some glaring issues, we supply pricing right with the sales sheets...the "a lot" which is usually not done by the buyer themselves comes down to how much money are they willing to put into it to make it "their house."

Jul 14, 2012 09:38 PM

Michael Blue

Home Smart Realty West - Encinitas, CA

REALTOR - 760-889-8877, Encinitas/Carlsbad

Some of the homes on the show would be hard to leave if it were me. Your right about its all relative but some of the people need a good kick in the butt. Just me sayin.

Jul 15, 2012 07:55 AM

Lloyd Binen

Certified Realty Services - Saratoga, CA

Silicon Valley Realtor since 1976; 408-373-4411

Pacita, yeah everyone defines "needs work" differently. It's a good idea to talk about specifics so everyone is on the same page.

Jul 15, 2012 12:51 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Sally and David -- buyers may not even have a clue of what "needs a lot of work" means. Or as you said, it's an objection

Michael --- some of these buyers are probably already kickin' themselves in the butt for not moving sooner. Now, they're finding themselves in multiple offer situation.

Lloyd --- all we can do is to listen carefully to get a full sense of what the buyers mean.

Jul 15, 2012 02:28 PM

Jeff Dowler, CRS

eXp Realty of California, Inc. - Carlsbad, CA

The Southern California Relocation Dude

Pacita

No doubt we have all found that "it needs a lot of work" has as many meanings as there are buyers. I always ask buyers to tell me more speciifally what they are willing to do, either themselves or to pay to have done. It's pretty illuminating as the perspectives vary from "willing to paint" to "ok with a major remodel."

BUt then you get folks out there and they sometimes seem to forget what was discussed, and the reasons for not moving on a property can be as simple as paint color or carpet. But put them in a seller's market and all that changes.

It's always a dialog worth having.

Jeff

Jul 19, 2012 04:15 PM

Pacita Dimacali

Alain Pinel - Oakland, CA

Alameda/Contra Costa Counties CA

Jeff --- there's another reason why we ask sellers to clean and declutter. Some buyers look at a mess and think it's a lot of work even if the property is in good shape. They just never can get over the clutter.

Jul 19, 2012 04:18 PM