Mahoney Knows Homes: Seller Expenses and Buyer Expectations

In a slower real estate market where buyers have more leverage, sellers are being asked to repair items and bring homes to a certain standard in order to attract buyers and ultimately sell their home.

Over the last few years “safety and function” were the focal points during a buyer’s home inspection. Without many other homes to choose from, as a buyer, it felt like just having an offer accepted was a success itself. When it came time to perform inspections, many sellers were refusing repairs that were needed, especially if they were considered to be minor.

That dynamic has shifted. Today, sellers are adjusting to buyer expectations that are very different from even a year ago.

With more homes available and longer days on market, buyers have time and options. They know that if this house doesn't work out, there’s another one around the corner. Literally.

Sellers are starting to feel the brunt of this and it has been an adjustment for those who haven’t been keeping up with trends. No, your home does not need to look like it belongs on the cover of “Good Housekeeping”, but when it comes to home repairs, mechanical issues, ages of systems as well as other big ticket items, buyers are paying attention and if they are paying a premium - they want everything to be functioning properly. Can you blame them?

Before listing a home, I often get questions regarding repairs, projects and what may or may not be “worth it”. In my opinion, there are two types of projects that make sense. Those that bring a return on investment, and those that will assist in selling the property with less friction.

The key here is understanding the difference between the two. Just because you fixed uneven floors, replaced the broken water heater, or repaired the fence that was falling - doesn’t mean you will get your money back. Sellers want to factor these items into their sales price because they spent money on the upgrade, but in reality - a buyer expects those items. They aren’t going to pay extra because your water heater works and is new.

A few years ago, buyers may have overlooked an aging HVAC system just to secure a home. Today, that same issue can become a negotiation point or send buyers to the next listing.

Considering the cost of homes, this should be a standard expectation. Nobody wants to buy your problems, unless you are offering a discount. I view this as a positive change in the market and how real estate transactions have been proceeding. If sellers want top dollar for their home, they should provide the buyer with a top dollar product, or they will search elsewhere.