They know that a fixer-upper requires additional time, inconvenience, and cost. Therefore, they feel that there should be a financial benefit to such a purchase. Consequently, they bring a strong negotiating position to the bargaining table, if they show up there at all. Additionally, buyers have a nasty habit of over estimating the costs of repairs that a property may require. Most people are not very familiar with improvement costs and tend to be rather generous with the seller's money when they estimate costs of repair.
Sellers often feel reluctant to invest money in a home that they are ready to sell.
They should consider that ultimately, the seller will pay for the repairs. The only question is when and how much. Will they pay for the repairs in advance of marketing the home and enjoy the benefits of a top dollar sale in a reasonable period of time, or will they pay for them later in the form of a larger discount. One party to the transaction will surely earn a return on their investment for the renovation. Copyright 1998-2001, Norm Fisher, Royal LePage Saskatoon Real Estate, all rights reserved.