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Rainmaker
2,425,090
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

The lower asking price will not benefit the seller.  The buyer will still offer less because of what needs fixing.  I would prefer they fix them and sell at the highest price they can.

Aug 02, 2015 10:52 AM
Ambassador
3,985,382
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Price first. When an allowance is offered it generally is not satisfactory to the buyer anyway. The price will get in more buyers to look.

Aug 02, 2015 10:45 AM
Rainmaker
3,508,585
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I'd rather they just fix the problem up front. But in the absence of that, do a lower price. Buyers don't like allowances and lenders don't allow them in many cases. Besides, how do you decide the appropriate allowance. People have different ideas for standards and quality of fix-ups.

Aug 02, 2015 09:18 PM
Ambassador
1,532,961
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I like to write a good and clean offer right up front. 

Aug 02, 2015 11:34 PM
Ambassador
4,770,376
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Best to start with an accurate asking price, though many buyer and their agents take advantage of buyers who do by expecting to renegotiate the price when repairs are needed.

Aug 02, 2015 12:44 PM
Rainmaker
782,289
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Lower asking price always (IMHO) with wording in the description that states the condition is reflected in the asking price. Never found  "allowances" attractive. If anything, it complicates the matter, a nice clean cut offer based on condition is mostly preferred even though the net numbers could be the same with an offer reflecting a allowance situation.

Aug 02, 2015 11:01 AM
Rainmaker
666,648
Sara Wagner
The Woodland Companies - Adams, WI
Stevens Point Rentals

Fix the items

Oct 15, 2018 07:29 PM
Rainmaker
3,685,869
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

A price that obviously reflects the condition.   If it is priced well in our market, the savvy buyers and their agents will understand the value.  If the value is not obvious, you're likely to encounter no or low offers. 

Aug 03, 2015 12:46 AM
Rainmaker
5,398,699
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

the home should be priced to sell in its present condition... there should be written bids for large jobs....to determine the price, start with the top condition price and deduct all of the costs needed to satisfy the jobs to reach the present state.

Aug 02, 2015 09:47 PM
Ambassador
2,209,980
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I would rather my seller fix the problems. 

Aug 02, 2015 01:42 PM
Rainmaker
822,729
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Blake - Good question, and obviously there is a difference of opinion on this. I would much rather have the repairs done, but that wasn't an option in your question.

So, I believe that an allowance would be a better way to go simply because you are stating that you know there are issues with the home, and you are already giving money to the buyer to fix them. If you go with a lower price, the buyer will probably not realize that the price is lower based on things that need repaired, so they will probably offer an even lower price.

Aug 02, 2015 11:38 AM
Rainer
66,214
Evelyn M Epperson
Coldwell Banker Residential Brokerage - Johns Creek, GA
A Tradition Of [Excellence, Trust & Service]

Lower the asking price!

Aug 02, 2015 11:34 AM
Rainmaker
1,093,178
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Highly debatable. Do the CMA if it does not sell allow $%K for carpet allowance.  As IS sale.

 

Aug 03, 2015 04:36 AM
Rainmaker
791,657
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Lower price to compensate for needed work, or better yet, have seller fix as much as they can afford to fix. Get estimates from licensed contractors if need be. The problem with allowances is: The seller and agent will say" let's allow $800.00 to paint that bedroom", then the buyer and his agent will say, " It's gonna cost me $2500.00 to have that bedroom painted ". Buyers always seem to overestimate cost of repairs.

Aug 02, 2015 11:53 PM
Rainmaker
823,310
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

What you suggest is to start the process with the seller negotiation with themselves..before anyone makes an offer. Once the seller starts going backwards, momentum will not be their friend.

Price properly and sell 'As Is' (this leaves repair decisions in the sellers hands) with a benefit. Then play wisely the cards you have.  Know who the ideal buyer is and sell the house to that buyer. Kick the others to the curb.

Aug 02, 2015 11:06 PM
Rainmaker
1,412,427
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Blake Rickels First off I believe the seller should make the repairs before putting the property on the market. If they can't an allowance works better than a lower asking price.

Aug 02, 2015 10:48 PM
Ambassador
1,706,708
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

In Oklahoma our contracts call for repair allowances negotiated into the contract so we figure out net sheets that way at listing with a typical amount of repairs. Of ocurse it depends on condition of property as to what we figure.

Aug 02, 2015 10:09 PM
Rainmaker
3,497,736
Richard Weeks
Dallas, TX
REALTOR®, Broker

Allowance for repairs.

Aug 02, 2015 09:50 PM
Rainer
322,790
Linda Metallo DiBenardo
RE/MAX Impact, Lockport, Illinois - Lockport, IL

Lower the price, the buyer pool will be larger.   Often the seller can't afford to do the repairs.

Aug 02, 2015 09:46 PM
Rainer
230,824
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

allowance. hands down as Evelyn said.

Aug 02, 2015 10:55 AM