Did I screw up?

15 Replies

I have a condo currently listed for $39.5k (one week today) I did a quick flip on. The property rents for $650 easy. Purchased for $19,150 and put just shy of $3k in repairs, however I skimped on repairing some rot around an exterior glass sliding door. There has been 2 showings and 2 more scheduled. Feedback from one buyer that has seen the property was their concern about the rot around the door. My question is should I go ahead and take care of the remaining repairs while it's listed? I'm concerned I may have jumped the gun listing it.. It's only been a week so can just ride it out or should I go ahead and take care of it? My agent is aware and knows I will fix the issue if its written in the offer. $39.5k is below comps and a great investment price. Other than the rot it's in perfect condition..renter ready. New carpet, kitchen counters, appliances, and updated AC.

Personally, if it was me- I would not give anyone an excuse to talk me down anymore than what you are already listing it for. This will be a negotiation tactic a buyer's agent will use against you. I am more of a wholesaler and full disclosure I have only done one flip to day, but I would do anything that would keep a buyer from complaining.

When a buyer sees one item then they will start to really pick things apart looking for more flaws. My two cents @Spencer Rossie  : just get it fixed and any other little item that is an easy fix that is easily noticeable. 

First impressions as they say last a lifetime. You cannot take things back, you can only do damage control once problems come to the surface. Your best bet is to correct the issues and get it looking good. In fact, a good agent will inform you that they can pull the listing-let you make the needed repairs and then put it back on the market. Good luck!

Your post indicates you already know it is a problem. Fix it before more potential buyers see it and either walk away because they suspect there are more problems and it is not worth making an offer or send you a low offer because they suspect there are other problems and they overestimate how much it will cost to fix the obvious issue.

Have your agent pull the listing. Give yourself time to fix it then after everything is looking good relist it. Price point does not seem to make a difference. When people are buying they want to feel they are getting something good. If they see an obvious flaw they will suspect you are covering up who knows what that will become their problem, inconvenience, and expense in the near future. That one thing may cost you not to be able to get your house sold.

Fix it.  Be proud of what you put on the market.  I truly believe you will make more money doing the right thing for the end user.  You just have to plan for it from the beginning.

Besides you'll sleep better.

Don't be the used car dealer hoping they won't notice that engine noise if you pour some motor honey in the oil.

Thanks everyone..I'm jumping right on this and getting it fixed ASAP. I just needed to hear it from someone else to justify my thoughts. Hopefully I can find someone with an open schedule and it won't cost me too much time. Rookie mistake here for sure!

Hey Spencer,

Either you fix it before you are under contract or you give them a credit if they require it as a contingency. It is best to leave the liabilities on the buyer. 

Cheers,

Lira

I've got a slightly different recommendation. Remarket your home as a handy man special and disclose the problem. You'll likely get a different pool of buyers that see your price as below market value for the problem with the home. If you're upfront about the issue and fair on the price then you'll find those who are willing to do the work needed to make the necessary repairs. 

There is now a total of 4 scheduled showings for this week. The soonest I can have it repaired is by Monday afternoon. I know a lot of you mentioned pulling the listing until the repairs are complete, but would you still do that to the buyers with appointments already? 

Keep the property listed. Instruct your agent to inform the buyers' agents that the issue will be fixed by a professional contractor on Monday. This shouldn't be an issue at all then.

I second what @Beau Ryan said. Assuming that there aren't other issues that potential buyers have seen/can see/will see then it should make them feel good knowing that the seller is taking care of the obvious issue.