Small repairs can cost big bucks

Yea very old gravity furnace - should it stay or should it go?

Sometimes the repairs don’t cost all that much but home sellers end up getting a lot less for their home because a repair is needed. A buyer may ask for $5000 off of the sale price for a $200 dollar repair. A new furnace isn’t a small repair it is a big one but again a buyer may want to subtract twice the amount that a new furnace will cost from the asking price. A Minnesota home has to have a working furnace.  The gravity furnace in the picture happens to work just fine but it scared a few buyers away.

Sometimes home owners believe that their asking price is in line with the condition of the house and that may be true but buyers will still think in terms of paying less than the asking price because repairs are needed. It ends up being a kind of vicious circle and in my job I see all the drama it causes.

If you plan on putting your home on the market don’t spend any more money on it than you have to. It usually isn’t necessary to remodel anything or buy all new appliances but if the place needs a new water heater, furnace or a roof it might be cheaper to do the work rather than trying to sell “as-is”. A house has to have a roof and even though they can get expensive they are not considered a luxury.

Banks will sometimes require that repairs be made before they will lend the money and of course sellers can say no and sell the home to someone else who will need to borrow money and who will also run into some difficulties.

Investors will buy homes that need a lot of work but they need to pay below market value in order to pay for the work that is needed and turn a profit when they resell.

My advice is to make repairs before the home goes on the market.

3 Replies to “Small repairs can cost big bucks”

  1. Joe Sheehan says:

    Sometimes we offer a home warranty to buyers for systems near the end of their useful life but still operational, such as HVAC systems, Water Heaters, etc…

    1. Teresa Boardman says:

      Sure you do Joe

  2. Sometimes the photos don’t come through on the emails. This one didn’t. Those heating systems are scary basement monsters!

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