Unfortunately in the Phoenix market area many homeowners do not have the funds to make the HOA payment, let alone pay for repairs on a house for which they receive zero at the closing table. Phoenix - land of the short sales these days.
Are repairs a necessity? Only if you want to sell your home! Over the past couple months I have written lots of offers on homes for buyers and many were lost due to the inspection, well really not the inspection, but the seller’s unwillingness to do any repairs.
For many buyers they just don’t care, they understand a home is not perfect and expect to do some repairs upon moving in, they know they are buying a used home. But, the people who don’t always think this way are the banks.
But, when I show homes to buyers that need FHA financing, I only look for homes on the MLS that list they are FHA financeable. But, after an inspection there are times the banks says “NO WAY”, not unless these repairs are done. Now, unfortunately for the seller, I hear this, “We have taken enough of a loss on this home due to the market, we aren’t going to take a bigger one and do the repairs!”
This is where the seller may be making a huge mistake, especially if home prices are still falling like they are here in Beaverton. Because we have such a large inventory of homes for sale, that even if we don’t list another home, it would take us over a year to sell everything.
Why could it be a huge mistake not to do the repairs? Simple, most buyers may not be able to qualify for anything other than FHA financing because of the lack of down payment. This will immediately eliminate a large number of potential buyers for your home. Add that to the fact that your home may now have to sit on the market another few months waiting for a buyer, meanwhile the price of your home will be following the market and losing value.
In the end, you may have to lower the price even more to get it sold and my guess is that the amount you lower the price will be a lot more than the cost of the repairs. Combine that with the fact that the next buyer may ask for the same repairs to be done. In my experience as a buyers and sellers agent, the seller will usually just say “fine” and do the repairs the second time just so they don’t lose another buyer.
Todd Clark and the Friendly Home Team
Capstone Real Estate
Todd Clark is a licensed Realtor who specializing in Washington County, Oregon and also works both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard.
All information contained in these posts is copyrighted and cannot be used without prior written approval authorization from the author. If you are looking for an outstanding agent please give Todd Clark a call he would love to help you in all your real estate needs.
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If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with Haven Express @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.
Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!
Tony Marriott - Chief Executive Officer - Haven Express @ Keller Williams Arizona Realty
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