When we're consulting with a seller ready to list their home, we're commonly asked, "What issues do we need to address and which ones can we ignore? Do we really need to spend that much money" These are loaded questions, and every case is different. It's a totally different situation when you're selling a $2 million dollar home versus a $250K home, but in general, I break repair requests into three categories.
An inspector can kill a deal by calling out every little, picky thing on a home they see. Maybe once a year I'll get a 10-page buyer request for repairs. It's their job to identify what they see, but it's unreasonable to ask the seller to agree to every repair. In reality, repair requests don't kill deals unless it's something major. If you have a reasonable buyer who wants to buy the home, a reasonable seller who wants to sell it, and agents on both sides providing good input, they'll all figure out a way to make it happen.
I've also sold many homes that required very expensive repairs, such as broken pool equipment, electrical issues, failing HVAC units, and failing roofs. Those can be tough conversations with a seller. How do you convince them to put substantial money into a home they're selling?
I think of repair issues in three categories ...
- Dangerous Safety Issues - Seller should Repair
- Functionality Issues - Seller should almost always repair
- Cosmetic Issues - Unless it's something so bad it's preventing reasonable offers, Sellers should not address
Dangerous Safety Issues - In my view, if it's a safety-related issue, it should be repaired at the seller's expense prior to closing. First of all, how would you feel if someone were injured or even died in a home you sold to them because you never addressed a safety issue you were aware of? There might even be legal consequences, even if it was disclosed on the Seller's Disclosure Notice. Anyone can sue anyone for anything. Whether the claim will hold up in court is another matter, but lawsuits are expensive and time-consuming. The goal isn't just to sell your home, it's to sell it with a clean bill of health and without having to look over your shoulder worried someone will be coming after you down the line. I'll talk more about this in an upcoming post.
Functionality Issues - Leaving obvious functionality issues unaddressed sends a signal to the buyer that you haven't really maintained your home through the years. If you're ignoring those issues, what else have you failed to maintain on the home? More often than not, they're quick and easy fixes that a handyman can take care of. If it's cracked windows, the most popular callout on inspections, get those replaced. I once sold a home with 26 broken windows so it was a major expense, but that's highly unusual. It's usually three or four windows. It might be a gate that isn't shutting or latching. A door that's out of alignment. A window that doesn't close properly. Maybe a pull down ladder to get to the attic. Does the home need a new roof? There are a million things that will eventually wear out on a home. Of course, if it's a major and costly functionality issue, like the HVAC or pool equipment breakdown, it becomes more problematic. By the way, if a system, like the HVAC, is working but old, I don't think it's reasonable for the buyer to ask for a new unit. Anyway, we can usually find a way to work through issues like these, however the lender will have to approve them.
Cosmetic Issues - This is where I tend to draw the line in the sand on repair requests. Should the seller be asked to have the pool deck re-stained because it's looking worn? Should the seller be responsible for repainting the inside or outside of the home because it hasn't been done in ten years? Should the seller replace broken tiles or countertops? We see that a lot, and again, from my point of view, that's on the buyers. Those are things that are expected with lived-in homes. But there are also exceptions to this rule of thumb. For example, extremely worn carpet with stains that won't come out is glaring and a major turn-off when someone walks into a room. I usually advise the seller to replace it.
