Real estate brokers and investors need to be looking for every possible advantage when marketing a property, whether for sale or purchase. Over the past 35+ years of helping brokers, I still notice plenty of opportunities to feature the condition of the property during the sale process. As the below linked article reminds us, there are too many deals that fall through upon the expected buyer learning about one or more costly problems with the property which were previously not considered.
Sellers need to be better educated about either having their property in “ready to go” condition, or directly acknowledge problems from the start. There is no way a potential buyer should have to learn about a costly problem after a purchase price has been agreed to. Inspectors often uncover these problems, and doing so can make a potential buyer shy away from more than the listing broker. Some potential buyers also shy away from the broker, despite him or her being previously unaware of the issue(s). They may also be hesitant to come back to the lender, placing blame on others for not being aware of a situation which causes them to remove an offer and cause damage to an expected arrangement.
When a problem emerges which costs thousands (or even hundreds) of dollars to fix, the seller may not want to budge or deal with the issue. However, some buyers do not want to have to deal with a problem even if they do get a credit off their home purchase. They would still need to pay for the repair or replacement caused, and now would not have mortgage financing to cover it if they need the financial help. That buyer may not have any other leads on a property to buy, and may have a contingent sale or deadline for a planned move.
My opinion as to how to prevent this doesn’t matter. What does is the damage that not having a thorough inspection can do for everyone involved. In the situation described in the article linked below, if the seller had completed a home inspection prior to the sale and shared it, there would have been more realistic options available. The seller could have adjusted their price to reflect the repairs or had them done prior to listing the property, being able to show “brand new” whatever was done. The potential buyer could have decided accordingly. The brokers and lender would have come into the deal confident that the terms and deal would stick.
A few years back, I had a situation in which a condo I needed to sell was in need of improvements. Upon getting cost estimates, I decided the cost was more than I was willing to pay. I had the broker representing me lower the price of the property, and made copies of the estimates available on the table during showings. Potential buyers could see what it would cost them to improve the property and meet the expected price range. The third potential buyer to look at the condo wound up being the buyer and they took on the improvements while I was able to cash out.
That was all about coming up with a solution which helped the buyer and seller each get what they want. It is all part, or SHOULD be, of real estate marketing. It might help you to be “first in” on getting to the closing table.