Jump to content

If you were a vendor
Would you reduce your price if the house was a lemon?

  • Please log in to reply
10 replies to this topic

#1 paula1

Posted 21 November 2012 - 09:45 PM

I'm in a situation where I will be pulling out of a sale due to the results of a building inspection. I will be looking at a minimum of about 30-$40,000 on repairs.
Some are major like foundation work, new drainage, plumbing etc.

This house will no doubt be hard to sell unless the price is reduced.

Have you ever chosen to reduce your expectation as a vendor due to major issues found on your property?

Or would you stay stuck with a lemon that doesn't sell due to major issues and refuse to reduce your price?

Edited by paula1, 21 November 2012 - 09:54 PM.

#2 ubermum

Posted 21 November 2012 - 09:57 PM

Sounds like you are buying the place I sold last May.

We had a lemon. We had our base price that we couldn't financially afford to go below. We advertised high knowing that the price could always come down, but never goes up. We were lucky. We had two potential buyers, a builder who was going to offer $150 less than advertised price, and the eventual buyer who didn't get a building inspection and bought for $40K less. We would have sold to the builder for what he offered if the buyer hadn't counter offered what they did.

In your case, don't assume the vendor doesn't already know the condition of what they are selling. It may be the reason for the sale.

#3 fatbelly

Posted 21 November 2012 - 11:00 PM

We just sold a lemon.  Only found out from a buyers building inspection (they pulled out), we approached the other interested buyer who we had refused for the ones who pulled out.  We dropped the price by $5k (but had already dropped it by $10k over three months), she had got a quote for repairs $20k (asbestos removal).

We knew something was up because it took five offers to finally sell.

We considered keeping it because it was so hard to sell, but now I am glad it is gone, it's her problem now to consider resale values etc.  Monkey off our back (we would have rented it out)

You can always over think these things, keep it, rent it, sell it, we lost more money than we think we should have but at the end of the day we came out with a profit and don't have a rental in another country.  The problem was never going away and the value would always reflect that.

On my street I have three houses for sale, all overpriced - $100k overpriced.  We are watching with interest but it seems ridiculous to me that agents let them put these prices up in this ecomony.

#4 paula1

Posted 22 November 2012 - 09:11 AM

Thanks guys, I'm pulling out today.
Even the bank valuation wasn't satisfied.

#5 FiveAus

Posted 22 November 2012 - 09:28 AM

Depends on who's doing the building inspection. When we sold our previous house (1960's double brick house set over garage, steeply sloped block), the buyers had a pest inspection mob do the building inspection as well. They were hopeless....it was all tick the box stuff, with disclaimers that they weren't experts and a professional plumber/builder/electrician/engineer etc should be employed for an accurate assessment.

The lower part of the house had surface cracking in the mortar on the outer layer of bricks but it didn't go through to the inner wall. It was pretty obvious that it was cosmetic only and of no consequence. However, the pest/building inspectors advised an engineers report, and the buyers squealed and carried on about  structural faults and integrity of the foundations and wanted the price reduced. Mind you, the report also advised a plumbing report in regards to a rusty downpipe, an electricians report for some untagged electrical work and a plasterers report on a piece of wonky plastering in the laundry.......but none of that was mentioned by the buyers.

We got an independent builder to come in and do an inspection and write a proper report, and didn't reduce the cost at all.

They still bought it. And they still own it.

#6 tle

Posted 22 November 2012 - 09:37 AM

If I was the vendor I would probably already know all the problems with the property and would have priced it accordingly so no, I would reduce the price.

#7 paula1

Posted 22 November 2012 - 10:22 AM

It's a deceased estate and the daughter is selling it.

Got a call from the broker this morning to say that basically the bank valuation was also a problem as whoever did it also noticed the problem and it would need further investigation.

#8 FiveAus

Posted 22 November 2012 - 10:31 AM

The buyers of our house also wanted the price reduced because it didn't have a split system and they wanted to add one. We pointed out it had never had a split system, it wasn't like it had one and now it didn't work, it had never had one in the first place.

Then they wanted a reduction because the concrete ramp going to the backyard had no handrail and they would need to get that added to bring it up to specs for renting out. We pointed out we weren't renting it out, we were selling it and if they wanted to rent it out it wasn't up to us to meet the costs to bring it up to spec.

#9 Escapin

Posted 22 November 2012 - 10:36 AM

If the bank isn't happy then I would say RUN! Which you are. Sounds like you've dodged a bullet on this one...

#10 Therese

Posted 22 November 2012 - 11:23 AM

QUOTE (Escapin @ 22/11/2012, 11:36 AM) <{POST_SNAPBACK}>
If the bank isn't happy then I would say RUN! Which you are. Sounds like you've dodged a bullet on this one...

I agree.  I hope your perfect house comes up soon!

#11 Holidayromp

Posted 22 November 2012 - 12:24 PM

As a vendor if you have a choice then hold on to it and rent it out and use it as collateral for another home.  After awhile and you have the means to do so - level it and sell it as a vacant lot or if you can afford it build.  

You are better off hanging on to a lemon as a rental because you are never going to make money on it selling it and it will just bleed you dry should you try and do it up.

1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users


Newborn baby found in a nativity scene

Police are trying to trace a woman who abandoned a baby boy in the manger of a church nativity scene.

Life would be harder without my kids

The Humans of New York Facebook page is well known for sharing touching, real stories from one of the world's biggest cities – and it's just hit the heart of parents everywhere.

Mum dresses as Wonder Woman for last day of chemo

A Brisbane mum dressed up as a superhero to celebrate the end of her chemotherapy and created a moment her family will remember forever.

How a raisin can predict a toddler's IQ

All you need to assess a child's future intelligence is a plastic cup and a raisin, according to new research.

Former Hi-5 member's cannabis hope

Former Hi-5 star Tim Harding hopes a cannabis-derived drug will help control his daughter's epilepsy, which sees the four-year-old suffering between 50 and 100 seizures a day.

The top 5 reasons your toddler throws a tantrum

Whilst to the outside world little people may appear to have it easy, it's actually not always the case – just ask any toddler who's had their toast cut up the wrong way.

Glenn McGrath thought he'd lost his wife and baby

Australian cricket ledged Glen McGrath has spoken about the moment he thought he might lose his wife, Sara and their baby daughter, Madison.


Inside my Centrelink nightmare

Mother Bec Smith has been trying for months to access Centrelink payments. A "serious error" is preventing her.

Warnings over push for hourly childcare billing

Australia's peak childcare body has called for caution around the Turnbull government's push for childcare centres to charge parents by the hour, not by the day.

Cate Blanchett thought about adopting for years

Cate Blanchett says her recent adoption of a baby girl had nothing to do with wanting a daughter after having three sons.

Kate Walsh: 'I can't have kids'

Grey's Anatomy star Kate Walsh has revealed she is unable to have children because she has experienced early menopause.

The parasite that could boost fertility

The Tsimane women of Bolivia are often revered as among the most fertile in the world - on average having 10 children in their lifetimes -- but some are even more fertile than others.

Family may sue cousin over genetics

A Melbourne couple is suing the Royal Children's Hospital for failing to diagnose a genetic disorder in their first child - an error they allege caused them to have another child with severe disabilities.

Strange things mums have done in labour

While most women in labour focus on the upcoming birth of their baby, some women do more interesting things.

Michael Clarke reveals baby's name

When Michael Clarke said he was wrapped around the finger of his little princess, he wasn't joking.

The logistics of breastfeeding twins

Our life is more or less divided into neat four hour parcels of time and it's hard to get much of anything done in the time between feeds.

How to stop people ruining Christmas

We can make a conscious effort about how we react to those curly Christmas day scenarios that can send us up the wall, or should we say chimney.

Lots of formula offers for desperate mum

The mum who was down to her last three tins of baby formula said she had received hundreds of calls and offers to send her formula.

Surviving breast cancer while pregnant

It was last thing Rebecca O'Donnell expected at 30 weeks' pregnant. One morning, while putting on her bra, she felt a pea-sized lump in her right breast.

Cot sheet brands for the nursery

With so many awesome cot sheet options these days, we thought we'd put together a list of go-to brands for you to seek out for your baby's bed.


What's hot on EB

How I survived breast cancer while pregnant

It was last thing Rebecca O'Donnell expected at 30 weeks' pregnant. One morning, while putting on her bra, she felt a pea-sized lump in her right breast.

Grieving father's letter to Bataclan terrorists: "...this little boy will threaten you by being happy and free"

A grieving father whose wife was killed in the attacks on the Bataclan Theatre last weekend has written an open letter to her killers.

5 challenges of motherhood - and how to see them differently

Despite the smiles, the sloppy kisses and the pure magic children bring to our lives, it's hard to deny that motherhood can be tough.

4 challenges of being a new dad - and how to face them

Becoming a parent is challenging – and that applies to both mums and dads.

My battle against antenatal and postnatal depression

I was five months pregnant when I realised I needed help.

Children swapped at birth will not be returned to biological parents

A boy and girl accidentally swapped on the day they were born will stay with the families who have raised them, a South African court has ruled.

A quarter of men believe they get 'man periods'

A British study has revealed one in four men believe they have a monthly cycle.

Baby deposit

How much do you need to save for a 'baby deposit'?

It's fairly straightforward to calculate a house deposit, but how much money do you need to save up for a baby?

Dad's beautiful note to his wife, a nurse

To anyone else it might just look like a picture of a mum having a nap with her toddler.

'I was a complete schmuck': Mike Baird opens up about his wife's postnatal depression

When his wife Kerryn was not well following the birth of their daughter, NSW Premier Mike Baird buried himself in his work.

Mum's desperate plea as whooping cough alert issued

A desperate mother has shared a heart-breaking video of her baby struggling to cope with a coughing fit caused by pertussis.

Coffee could help you live longer

New US research found people who report drinking three to five cups of coffee a day are less likely to die prematurely from heart disease, suicide, diabetes or Parkinson's disease.

The joy and dread of playdates

To live vicariously through your child is to rediscover anxieties you thought dead and buried.

Sick baby could die without scarce special formula, mum says

Lizzie Cann is down to her last three tins of a special formula in short supply.

Adorable toddler's strop foiled by squeaky shoes

We're probably all familiar with the pouty bottom lip and tightly crossed arms of a tot mid-strop.

More sex during World Cup created more baby boys

More sex during South Africa's World Cup meant a disproportionately high number of boys were born nine months later, a new study has found.

Win one of two ABC Shop prize packs in time for Christmas

What a boon it would be to have your toddler's Christmas gifts covered this year. We have two awesome ABC Shop prize packs to give away to two lucky winners.

Do fitness challenges really work?

Fitness challenges aren't new. There's Michelle Bridges 12WBT and a bunch of other programs if you really want to lose weight.

What are pregnant women Googling?

Pregnancy is a huge change for any woman, so it's natural we'll have questions - and turn to Google to ask them.



Can't decide?

Check out the Essential Baby Names section for some inspiration

Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.