Why Buyers Want You to Fix Your Crested Butte Home?
Why Buyers Want You to Fix Your Crested Butte Home? It is rare for me to work with a couple looking to buy their Mountain Dream Home here in Crested Butte who say: “Take us to the crappiest homes in Crested Butte!” or “We want to see the homes that require the MOST work…”
This just doesn’t happen. Buyers want (and expect) to walk into a home that is in very good or in pristine condition even if it was built 25 years ago. This means “issues” have been repaired, or replaced or updated if necessary.
The Buyer Will Hire an Inspector
If your home goes under contract – one of the rights (and contingencies for termination) that the Buyer gets is the Inspection Period.
The inspector will find all that is “wrong” with the home, including all the “issues” that need repair and items that need fixing. These things will be listed in the inspection report along with photos. It is very normal for the Buyer to expect the Seller to remedy these issues.
Translation: Buyer expects Seller to pay to either fix the issues, or put up the cash so the Buyer can fix the issues after Closing.
The Buyer’s Lender Wants You to Fix Your Crested Butte Home
Here is the problem – about 50% of our transactions have lenders involved. The Inspection Objection Resolution form becomes part of “The Contract to Buy & Sell”, and the Lender gets a copy of this. Lenders don’t like to lend on properties with problems because they don’t want to take a property back and have to re-sell it AND spend their money to fix it up… Also a seller setting aside a chunk of money in escrow can be problematic for the loan to value ratio. Lenders will typically require the stuff to be fixed BEFORE closing. Taking the time before closing to get bids, hire contractors and get work done will delay closing or could queer the deal (hard to repair a roof in the winter)…
So whether it is the Buyer – or the Lender who Wants (or requires) you to fix your Crested Butte home – it is likely that YOU will have to have these items fixed anyway.
The “Reverse Inspection”
My goal is to help Sellers get the highest price for their home and making their home appeal to the buyer market is key in doing this. I coined the term “reverse inspection” a few years ago. Normally Buyers get the inspection. Better to get ahead of the curve and if you are a Seller then YOU should consider hiring an inspector. It is advisable to do so long before you list our home to provide you with a report, and then get a handyman or contractors to come in and make the necessary repairs (especially the items that are visible to the buyer).
Your home may have been built before certain codes were created, and the inspector will find all of these faults.
Here are some common issues found in most Crested Butte Home Inspections:
- Broken seals
- Double pane windows with the seals broken
- Cracks in drywall from settling
- Water in Crawlspace
- Lack of vapor barrier in Crawlspace
- Exterior paint, stain, stucco, wood issues
- Deck railing that was damaged by winter snow shed
- Water heater that is 16 years old? (typically they are rated to last for 15 years)
- Electrical outlets near running water have GFCI outlets or are on a GFCI circuit
- Does your Crested home have both working smoke detectors and carbon monoxide detectors?
If they are battery operated, replace the batteries. It is so annoying to show a client a home and have that loud CHIRP sound every twenty seconds – the buyer cannot concentrate on your home, and they just want to get out as soon as possible.
Let’s say you had a toilet overflow and the resulting water damage seeped through the floor, and discolored a spot on the ceiling below. The buyer will assume this is a major issue and that there is a leak in the roof and water leaking into the house. Their perception will be that your house has issues, and they will wonder what else is wrong that they cannot see.
Do you have old A/V equipment in your home with a rats nest of wires visible, and does it take 5 remotes just to turn on a TV with audio?
Is your home clean and tidy? If a home is messy and cluttered it will negatively affect the showing. Some things will turn a Buyer away immediately – they may like the home, but will assume if they can see issues, there must be many more. Others are the difference between a turn-key home and one that needs work. The market will reward the homes with a higher price point that are pristine and ready to move-in.
If a Buyer decide to make an offer on a home with issues, it may be a low offer. The buyer’s assumption is that they will need to spend lots of money fixing the house if they buy it, and they don’t know how much money? So there is a risk factor that will be represented by a discount from asking to selling price to “compensate” the buyer for spending their time, effort and money to fix these “issues”.
How can I help you with Your Crested Butte Real Estate Needs?
This article and my monthly market reports on Crested Butte Real Estate, and the level of detail is representative of what you can expect from me as your Real Estate Agent.
I have consistently been among the top real estate agents in Crested Butte, and I strive to exceed client expectations.
Existing Crested Butte Homeowner – If you are interested in finding out what your property is worth, or may be considering turning a chapter in your life – contact me today.
Considering Buying a Crested Butte Home for sale – If you have started thinking about how great it would be to have your own Crested Butte Home and are considering me to represent you as a Buyer, I would appreciate the opportunity to earn your business!
For more info on me and the Crested Butte Real Estate Market – Visit www.chriskopf.com.
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Global Luxury Property Specialist
Coldwell Banker Bighorn Realty