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Good suggestions here.
Usually when I take a listing, the price range is reflective of the current condition of the home. As we know, each transaction is different. As the listing agent I would advise the seller to do one of the following:
Raise the asking price to cover repair cost.
Lower the selling price and make no repairs.
Let my Seller decide what repairs - if any - he is willing to negotiate. If the price is good maybe he will handle some things. Otherwise bye bye Buyer and on to the next one!
there are times when you need to be on to the next buyer....
I calculate how heavily invested the buyer is and then I approch the seller with option B, the back up buyer. It is surprising what happens in that situation that tends to be very agreeable to everyone.