Is it better to list at a lower price? or to include a repair credit?

Question

I have an investment property I'm about to list on the local MLS for a retail sale. It needs about $10k in repairs, $4k for foundation work, $4k for a new roof and misc cosmetic items. I do not want to do any repairs but just list as is. So would it be better to list the property at a lower price of $65k or at $75k and give them a 'repair allowance' or discount of $10k, effectively bringing their price to $65k. Any advantages/disadvantages to either strategy?

Mark Ferguson · Answer

I think he is saying he is not doing any repairs, but wants to know if a price of 65k or 75k with a 10k repair allowance is more enticing. The lower price is always more enticing in my view.

Bill Gulley · Answer

That's investors talking, if an investor is your likely target market, as is would be fine. If you want to target the general public, like 100 times more prospects, then the higher price with repairs made, since repairs will likely be required to close financing. Your target market will better define which direction you need to list it. You can also list it with repairs and footnote a lower as is price being considered as well, or, the other way around. Listing at the as is price will likely get more looking, they can then see the alternative offer that might be available. :)

Collin Goodwin · Answer

Belinda, long time no talk! I would much prefer the lower price. Either way, the problems are there and I would just feel better purchasing lower w/ repairs that higher w/ repairs.

Jared Benson · Answer

I agree with both zach and jon, unless you are going to do all the major repairs you are probably better off lowering your price and aiming to sell to an investor.

Jon Huber · Answer

I would go for a lower price. People generally think they could get a better deal to get the work done than the next person. Whether that is true or not, I think most people prefer the control to do the work themselves and decide what to pay for the repairs. At least that's the way my mind works...

Zach Sikes · Answer

Lower price and as-is. A typical retail buyer wouldn't buy it anyway with the work that needs done, so that means an investor would be your target market. Most would prefer to get a better price and do the work themselves.

Is it better to list at a lower price? or to include a repair credit?

Is it better to list at a lower price? or to include a repair credit?

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