Selling - Price concessions
Hello I’m in need of some advice. I’m selling a 1960 duplex. Buyer did a specific sewer inspection and found corroded pipes with root intrusion under the concrete and the quote was $40K. Buyer is asking for a price concession but I don’t think it’s warranted. The building is being sold as-is, there is no immediate issues that alerted me as the owner that we even had issues and I’m told that pipes with corrosion are common and can still flow because the dirt below becomes compacted and does not impede the flow. What is the right course here? Price reduction or stand by as-is sale? Thank you for any advice.
#1 All Forums Contributor
- Investor
- Northern Virginia
@Brenda Garcia
Get a second opinion and determine if it’s entire run or a section as 40k seems excessive.
We are getting a second bid tomorrow, but if much less would you suggest I give a price concession?
#3 Managing Your Property Contributor
If it was marketed as 'as is', then tell them it is as-is. I'm guessing the price was lower than market value to reflect the 'as is' condition. What does your realtor suggest? They should also know someone who could price it.
Quote from @Theresa Harris:My agent is saying to concede on price but they are also representing the buyer so I wanted a second opinion.
If it was marketed as 'as is', then tell them it is as-is. I'm guessing the price was lower than market value to reflect the 'as is' condition. What does your realtor suggest? They should also know someone who could price it.
#3 Managing Your Property Contributor
Quote from @Brenda Garcia:
Quote from @Theresa Harris:My agent is saying to concede on price but they are also representing the buyer so I wanted a second opinion.
If it was marketed as 'as is', then tell them it is as-is. I'm guessing the price was lower than market value to reflect the 'as is' condition. What does your realtor suggest? They should also know someone who could price it.
If they are double ending the deal, then I wouldn't trust them either. They are meant to represent you. Ask them if they are willing to reduce their commission since they will be getting the full amount instead of splitting it with another realtor...I'll bet they say no. Call and get a second quote for replacement and then offer to split it 50:50 with the seller AND have the realtor kick in a bit to make the deal happen (only because they are double ending the deal).
Quote from @Theresa Harris:
Quote from @Brenda Garcia:
Quote from @Theresa Harris:My agent is saying to concede on price but they are also representing the buyer so I wanted a second opinion.
If it was marketed as 'as is', then tell them it is as-is. I'm guessing the price was lower than market value to reflect the 'as is' condition. What does your realtor suggest? They should also know someone who could price it.
If they are double ending the deal, then I wouldn't trust them either. They are meant to represent you. Ask them if they are willing to reduce their commission since they will be getting the full amount instead of splitting it with another realtor...I'll bet they say no. Call and get a second quote for replacement and then offer to split it 50:50 with the seller AND have the realtor kick in a bit to make the deal happen (only because they are double ending the deal).
Thank you, I realize now that it was not listed as as-is so I’ll get a 2nd bid and offer to split the costs if the agent kicks in too. I appreciate it, that seems fair for all parties.
#2 Market Trends & Data Contributor
- Investor
- Las Vegas, NV
Do you have any other offers? The realtor should be presenting all offers. If no one else is jumping at your price then maybe you have to take this offer. Since they are e presenting both ends I would specifically ask them in an email so you have it in writing. Are there any other offers? Do you need/really want to sell? If the price is high enough and you start talking about pulling it from the market if you have to fix this then maybe the realtor jumps to your side? I THOUGHT a double agent owed more responsibility to the seller than the buyer, but that might be state by state?
Is this $40k on a million dollar home or a $200k home? Is it a rental bringing in money or a house sitting empty? Could you sell it for more if you advertised it as having new pipes? Obviously it’s worth more with brand new pipes than u0 year old ones, so no way should this be 100% on you.
Quote from @Bill Brandt:Good points Bill. Thanks!
Do you have any other offers? The realtor should be presenting all offers. If no one else is jumping at your price then maybe you have to take this offer. Since they are e presenting both ends I would specifically ask them in an email so you have it in writing. Are there any other offers? Do you need/really want to sell? If the price is high enough and you start talking about pulling it from the market if you have to fix this then maybe the realtor jumps to your side? I THOUGHT a double agent owed more responsibility to the seller than the buyer, but that might be state by state?
Is this $40k on a million dollar home or a $200k home? Is it a rental bringing in money or a house sitting empty? Could you sell it for more if you advertised it as having new pipes? Obviously it’s worth more with brand new pipes than u0 year old ones, so no way should this be 100% on you.
#3 Managing Your Property Contributor
Quote from @Bill Brandt:
I THOUGHT a double agent owed more responsibility to the seller than the buyer, but that might be state by state?
I thought the same as you.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
It is completely up to you and how much you want to give up. Wether it is fair or not does not play a factor for you. If this is a "as is" sale the buyers should have expected there to be repairs.
@Brenda Garcia
Check your state regs. Dual-agency in WA actually means no representation, just facilitation.
I'd say get more bids. Some Buyers will find a nice expensive contractor and bid to encourage dropping price. I have represented many Sellers where Buyers do that. I've seen bids for rotten sub-floor work 10x actual cost and others. The craziest I have seen is a bid for foundation work 20x actual cost to get job done. I've had Buyer's agents tell me, "if you go back onto market, then you have to tell people what we found", thinking this is a ploy to get me to convince Seller to drop price. It's the Seller's choices. It's so funny because each Buyer has different pain points. I've seen where one Buyer will have a problem with a roof and then want to terminate. Another will look at the same inspection report (previous Buyer's report) and say roof looks fine. Recently I was helping a Seller sell their property AS-IS. Buyer asks for repairs. I ask the agent, "so your Buyer put it in writing that they are buying AS-IS, what's up with the repair requests? Does that mean your Buyer was lying?" Agent responds with, "Everyone in my office does this." So I respond back with, lol, "So you are telling me everyone in your office lies?" Agent seriously tried to back-pedal that one. Seller stuck to their guns and yes it sold to THAT Buyer.
#2 Contractors Contributor
- Severna Park, MD
Have the sewer jetted , basically a pressure washer that blasts away the roots . There is ALWAYS rust in cast iron pipes . After thats done have it inspected again . It should be fine .