If you represent buyers or sellers, you have probably heard your buyer or the buyers agent say - "The House Needs Too Much Work."
The real question to ask is "Does It?"
From my experience, when a buyer tells you that the "house needs too much work", they are really saying two things:
1) I am not interested in this house for many reasons, not just that it needs work.
2) I am interested in this house, but do not know how much it will take to fix this house, or I THINK that the cost to repair is so great, that it is not feasible to move forward.
When I hear this statement from other agents or buyers, I say the following:
To my buyer clients:
Me: I understand that and can appreciate that, as it does appear that the home needs work. What concerns you the most? If it needed no work inside or outside, would it be a home you would be interested in? What about the floor plan? What about the backyard? What about the neighborhood or location? Are the property taxes within your budget? etc...
Buyer: I like all of that, but it seems that it needs $50,000 in repairs, and I do not have the money to do this or the time... But I do really like the house and layout.
Me: Ok, great! Lets first determine if it really needs $50,000 in repairs. Lets first determine the value after the repairs. Lets keep looking and comparing, and I will give you an action plan.
Buyer: But, at this price I could not afford the repairs.
Me: I understand. What if there was a way to get the house you want at the price you want, and not pay for repairs out of pocket... Would you be interested in that?
Buyer: Of course... but how?
Me: First off, I have did my research and I will show you that the market value of this house "AS-IS" is ($XXX,XXX) - So the seller is priced close to market value. Also, this house would qualify for a rennovation loan or 203K so you can get a new roof, bathroom, or even a new kitchen... Do you know what that is? etc....
Buyer: I am interested, tell me more...
To the Buyers Agent:
Agent: My buyer liked the property but it needed too much work for them...
Me: Ok, I get it and we have heard this statement so many times in our business... (smile and laugh)
Does you client like the house other than it needing too much work?
Agent: They would have to gut the kitchen and baths.
Me: What if it had a new kitchen and baths?
Agent: Is the seller going to upgrade those?
Me: Well if they did the price would be higher ;) No, but did you know that my lender offers a rennovation loan program and your clients could pick out their dream kitchen and luxury bath and roll that into their mortgage and at this price, the house could still absorb that and appraise.
Agent: Bob, get me more information and I will talk with my buyers about it.
The point of all this dialoque is that it is "dialogue" conversations... A sale does not happen without good conversations. Too many agents do not answer their clients objections. Too many agents do not attempt to get their hands dirty in providing more than one solution to a problem or objection.
It is your business to have deeper and thought provoking conversations with your clients and other agents.
Remember, everyone is an EXPERT in real estate. Buyers and some agents think a typical water heater costs 3X that it really does. They do not know the cost of a roof, a furnace, or what gutters cost. Many agents and buyers get caught up on the cost of tearing down wall paper or non grounded outlets. Heck they do not even know what an inspection cost...
Be the leader in your industry and control or add value to the CONVERSATION.