Avoid a potential train wreck and save money in the long term
Q: My cousins and I inherited our aunt’s home. The co-trustee seeks consensus on selling the property as is or hiring inspectors and making repairs and minor enhancements. Basically, opinions vary. It’s a single-family home in an established suburban neighborhood. The nearby remodeled homes for sale have new exterior paint. These homeowners spruced up their curb appeal by replacing original shrubbery with colorful plants.
Should we sell the home as is or does it pay to fix the property?
A: In my career, I’ve never had a property seller regret investing in inspections, repairing deferred maintenance items or providing property enhancements. However, for some people, it’s hard to take money out of the bank and put that into homes and yards they don’t own, or worse, properties about to be sold. To them, it’s wasteful spending. The practicalities need to be comprehended. As a result, the co-trustees will hear, “Just put the property on the market and sell it,” meaning to sell your aunt’s home in its present (as-is) condition, sans inspections, repairs and improvements. In that case, there are strategic, relatively low-cost steps to improve the home-selling process exponentially.
Frugality can be expensive for home sellers. To illustrate, if there are property condition surprises during a home sale, homebuyers often cancel the sale or renegotiate from a position of strength. Ultimately, home sellers find themselves in a weak position. These are just two avoidable negative ramifications for home sellers, costing thousands to save hundreds of dollars on presale inspections.
It’s important for homebuyers to purchase with confidence. The home seller’s presell assortment of inspections provides credibility and removes distrust. Buyer remorse is the enemy, especially with an as-is home sale. Homebuyers with “advisers” who have not bought or sold a property in years or decades can frequently fuel a homebuyer’s anxiety. Don’t let that happen. Before the first homebuyer sets foot on the property, savvy home sellers obtain home, termite, roof, chimney, foundation and lateral sewer line inspections from the appropriate firm. Presale inspections are tactical risk management tools for home sellers and outstanding consumer protection for homebuyers. In other words, you can protect your cousins by looking out for the homebuyers’ best interests.
For Housing Market Data in your area, visit my webpage for trends here. Do you have questions about home buying or selling? Full-service Realtor Pat Kapowich is a Certified Real Estate Brokerage Manager and career-long consumer protection advocate. He is based in his hometown of Sunnyvale, California. Office: 408-245-7700; Broker# 00979413 Pat@SiliconValleyBroker.com