The purpose of a listing agent is to get the most money for their client at closing. Not the highest sales price but the highest net price.
Too often, listing agents have the seller order inspections upfront without doing the repairs. I contend that in most cases, this is costing the seller money. Here are some reasons:
- Remember, the seller is strongest during negotiations, when the buyer is in love with the property. If problems show up during the transaction, the power shifts to the buyer.
- If a seller waits until the contract, they are obligated to replace what is there, with existing materials. If a seller does the work before the contract, they can creatively downgrade, thus saving the seller money. If a seller has a questionable roof, the buyer might demand it be replaced if they want to sell. If it is shake, that is what the buyer will expect. If instead, the seller had replaced the shake roof with an ashpalt roof, they would have saved 1/2 and now had a marketing advantage ......NEW 30 yr ROOF! Or instead of a several thousand dollar mastic tile showere, put in a new Plastic insert at 1/2 the costs.
- If you shop the Seller repairs before the buyer offer, you can save lots of money. If you wait until 15-20 days into the deal, there is little time to effectively shop. Also, if you wait, the Buyer might insist that you use their contractor.
- Sometimes there are alternate solutions to fix a problem. If you do it upfront, the seller can be creative, inlcuding removing the item (non-code patio cover, etc).
- Everyone agrees that properties that show best, sell quicker and sell for more. So, if that is the case, why would an agent let their seller wait to make repairs, where there is a glaring problem? How often have you toured a house, only to see a disgusting shower or a stain on the ceiling from a prior roof problem? So, instead of a buyer opening the shower door and wondering ..."How do people live like this?", they open the door and say .....Honey, come look at the new shower.
I think the best approach is to ask youself, if I were FLIPPING this house, what would I do. Then, ask, what will it cost to fix and how much return will I get back.
WHAT DO YOU THINK????