"The cost of inaction is far greater than the cost of fixing a problem."
When I peruse through my ActiveRain blog archives, certain posts seem to catch my eye. That is the case with the following post.
In November of 2007, several months after a big wind storm in Wenatchee I posted the following article.
Wednesday I was asking another agent about the motivation level of his sellers and whether they are flexible on their price. The house would well suit my buyer's needs but it seemed over-priced.
So, I'm asking this agent if his sellers are flexible on price. His answer: "Well, they are offering a $9,000 roof allowance so that's nearly a $10,000 price reduction". WHAT? I was speechless. Since when is a roof allowance a price reduction?
Isn't that like a car dealer telling you they're going to include a steering wheel so that's like a $300 price reduction? Uh... what would I want with a car without a steering wheel. Likewise, what would I want with a house without a good roof? Unless you're making an all-cash, "as-is", sale you cannot sell a house with a bad roof. In my experience, lenders will request the appraiser to estimate the roof life at about 5 years or more.
You cannot price a home at market value and consider it a price reduction by putting on a new roof!
A roof allowance does reduce the seller's net proceeds but it is NOT a price reduction... is it?
So... when is a roof allowance a price reduction? In my opinion: NEVER.
Paul S. Henderson, RE...
Ron and Alexandra Seigel
Anna Banana Kruchten ...
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