You’ve found the home of your dreams but it needs a bit of work. How do you ensure your dream home doesn’t become a money pit?
As your agent, I see this situation often and have been around long enough to know that few causes are hopeless if you’ve really found your perfect home.
Here are a few issues to consider before we either start a negotiation with the owner or walk away.
How bad is it really?
Is it just the color of the walls, or the state of the carpet? Is the kitchen a 1970s original? Or is there a serious mold problem connecting the ceilings to the floors and a collapsed ceiling? Understand if your issues are just surface problems that can be easily rectified with some elbow grease or a handyman. If they require major work we can get a contractor to help with an assessment.
What do you need to spend?
To understand just how much the value of the home is affected, find out what the cost of repairs is likely to be. We will request access to the property with the contractor so they can provide a detailed quote. This will help guide the offer, provide an important proof-point as part of the negotiations, and get you up and running quickly should you win the property.
Consider the market
Your first instinct will probably be to just make an offer that’s way lower than the asking price. But in a strongly performing market, this may not be successful in ensuring you secure the property, as the issues are likely to have been factored into the expected price range. If the market is a little quiet, you’re in a stronger position. Make sure you’re well-armed with the information that will help rationalize the offer.
How long are you going to live there?
If the property is perfectly positioned, close to the schools and in the neighbourhood that you’ve always wanted to raise your kids, then consider the money you’re going to save by not moving again for the next 20 or so years. Factor this into your budgeting for repair work.
Let the agent know you’re serious
If you really love the property, we will let the selling agent know you are serious but that you have reservations. We’ll outline to them your offer and say you expect a callback, even if the owner rejects the offer. Sometimes, dropping the price isn’t the best solution. The seller may offer to complete the repairs. Everything can be negotiated.