Hi Sarah:

Please don't get me wrong! As an Associate Broker, I've been faced with such challenges from my clients. I love to sell properties with severe problems. I glad to know your intention of disclosing the problem. I would like to reiterate, there is a buyer for every property - HANDY MEN are out there! Market your property to a specific target market ie. if you don't have the $$$$$$$$ to fix it! However, if you do have it, fix it and ask full market value.

Good Luck

Pierre S. King, Associate Broker
Weichert Realtors, H P Greenfield
http://www.kandhHomes.com

I am going to vote along with the agents who say "repair it". I have listed houses with major problems and not only do they take longer to sell, but even if they are priced to reflect the repair issue (and who is to say they are, sometimes it's just the cost of repairs taken off the owner's inflated idea of what the property is worth), buyers still want to discount more than simply the cost of repairs, but also for their inconvenience to do the repair.

Sarah,

Are you working with a real estate professional? Ask them to explain the advantages and disadvantages of selling your property "AS IS" with right to inspect.

Under these terms you should be relieved from the need for making these repairs.

Good luck

Thank you Brigita - yours is exactly the answer I was looking for. I'm sorry if my question was confusing to the other agents replying. Don, I wish it were as simple as waterproofing ;-/ Thanks everyone!

I pretty much agree with what the other agents have answered you. You would have to disclose the problem or face lawsuits later. It will completly turn off some buyers who don't want to deal with the problem. Others will automatically discount more than the repair costs in their mind before making any offer. They will deduct these costs even if you have already discounted the price because of the problem. The end result is that it will take longer to sell your home. Your agent can give you a selling price range to help you figure out the cost benefit of repairing it or selling with out the repairs.
The best option is to have repairs made by a reliable water proofing company that will guarantee the repairs to the new buyer. You can check to see if the repair company will hold off on payment until the home sells.

Hi, Sarah!

You can sell the home without doing the repairs, but the home is to be sold in "as is" condition. The asking price should be lower due to the needed repair. Any home that requires major repairs will sit on the market for a long time. The longer it sits, the the more the market value on the home will decrease. With the large inventory on the market, buyers will shy away from homes that need expensive repairs and find a comprable home with less expenses to fix up.

If the problem is taken care of before putting it on the market, the house will sell at a higher price and you will attract more buyers if the home is priced right.

Brigita McKelvie, REALTOR, e-PRO, GRI
Keller Williams Real Estate, Bethlehem, PA
Office: 610-867-8888 Direct: 610-393-9424
E-mail: brigita@brigitamklv.com
Web: http://www.RuralAndHorseProperties.com
Blog: http://activerain.com/blogs/brigitam

I was not implying we would not disclose it. I'm saying what if we disclosed the issue, but chose not to repair it. In your experiences, do homes with problems sell or not? I wasn't sure how powerful bargaining & negotiating tactics could be in this situation.


Sounds as though either way, we'd be ahead by repairing it first. That's what I needed to know! Thanks!

Sarah:

My name is Pierre King, Associate Broker Weichert Realtors H P Greenfield. Sad to hear about your mishap! However, the Property Condition Disclosure Statement Act, requires you as the seller of residential real property to cause this disclosure statement or a copy thereof to be delivered to a buyer or buyer's agent prior to the signing by the buyer of a binding contract of sale. This is a statement of certain conditions and information concerning the property known to the seller.

A knowingly false or incomplete statement by the seller on this form may subject the seller to claims by the buyer prior to or after the transfer of title. In a event a seller fails to perform the duty prescribed in this article to deliver a Disclosure Statement prior to the signing by the buyer of a binding contract of sale, the buyer shall receive upon the transfer of title a credit of $500 against the agreed upon purchase price of the residential real property.

Another option, you could get estimates from more than one PROFESSIONAL who specializes in such area. Once you have them, they could be used as negotiating tools with your buyer ie if you're low on CASH! Remember, you may have to give a great PRICE REDUCTION!

There is always a BUYER for each property! At the right PRICE someone is going to buy! Therefore, STATEGICALLY PRICE your property if you don't have the $$$$$ for repairs!

Remember to seek LEGAL: ADVICE from your attorney!

Good Luck!

Pierre King, Associate Broker
Weichert Realtors H P Greenfield
718 692-4444 Off
718 253 6853 Fax
email:MrRealEstateKing@yahoo.com
http://www.kandhHomes.com
http://www.trulia.com/blog/PierreKing/
http://www.twitter.com/1realestateking

Dear Sarah,

I agree 100% with Jennifer's answer. You will be far ahead by having it repaired up front. Also, in the State of Wisconsin, not disclosing it is not an option. I'm not sure if I misunderstood your wording, but if that is what you were thinking -NOT A GOOD IDEA.

The other aspect of this type of problem is that once a buyer has an inspector and the problem is brought to light, it must then be disclosed to any future buyer. Therefore, you will need to fix it either way. Also, the bank will not approve the loan with that type of issue.

Best to fix it and disclose it as repaired with no further problems and keep your receipt and any warranty handy to pass along to the future buyer. That usually satisfies them with no further question.

Linda

I recommend fixing it. In my market, the houses with any sort of handicap are sitting the longest. The longer you sit, the more you will have to negotiate. Even if you price to account for the problem, the buyer will take some number off for it as well - why let them set the "cost"? It's better to repair it and just let it be a non-issue.

I just went through this with a listing of mine - there was a bulge in the basement wall. My client figured we'd get an estimate for the repair and provide that along with the disclosure statement. But the thing is, buyers like to have their own evaluation - often when I'm present when a contractor comes to a property with a problem, they want to know if my client is the buyer or the seller - - as if there might be a different answer for each...

So, why let the buyer evaluate the problem? I honestly think that it will cost you more NOT to fix it.

Good Luck!

Jennifer