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

 

Video: 10-week-old baby sounds like she says 'I love you'

It’s mixed in amongst garbled baby talk, but this 10-week-old's apparent attempt at telling her parents that she loves them has made her an internet star.

I only enjoyed pregnancy after booking my caesarean

To say I became obsessed is something of an understatement. Everywhere I went I found cause to be reminded of my impending pain.

When your bundle doesn't bring immediate joy

One mum says joy is very a personal feeling and expecting all new mums to feel it in the months after their baby born may do more harm than good.

Lessons learned from my toddler

Blogger Kiran Chug explains why she is going to let her toddler make more decisions for himself.

Family welcomes first baby girl in more than 100 years

The Silverton family has heard the phrase "it's a girl" for the first time in four generations.

When a community of kindness steps in

In future when someone I care for, or even someone I barely know, is experiencing a difficult time, I will not overthink it. I'll follow my heart.

Mum in Business: Jac Bowie

Jac Bowie is the founder of Business in Heels, one of the fastest growing women’s networking events in Australia. She shares her story, including how she juggles work with a young family, and ways to work smarter.

What not to say to a mum of twins

Being a mum of identical twin boys stirs up great interest and fascination. It also opens itself up to nosy, invasive questions, as well as huge assumptions.

The mums suing over unplanned babies

A mother-of-five who calls her two youngest sons "miracle babies" is just one of many mums seeking financial compensation for their children's unplanned conceptions.

Video: Dad sings 'Hallelujah' to his daughter every year

It's a gorgeous song to begin with, but this dad's version of Hallelujah, sung for his young daughter, is especially touching.

Constipation in babies when starting solids

While starting solids can be frustrating and messy (yet also fun!), introducing solids can also play havoc on tiny digestive systems.

Parents reunited with baby snatched from hospital

A mother whose newborn baby was snatched from hospital has spoken of her joy and relief at getting her daughter back.

In defence of the bumpie

Are bumpies - bump selfies - really "exhibitionism of the weirdest kind"?

Life on the other side of the fence: Why I'm child-free and quite content

Acknowledging that motherhood isn't a bed of roses – to begrudge lack of time, sleep, money and spontaneity – is sacrilegious and a no-no, especially by mother superior-types.

'Go the F*** to Sleep' author's new book for frustrated parents

A sequel is coming soon to the 2011 hit book 'Go the F*** to Sleep' - and this time, it's about mealtimes.

Win a $200 Pumpkin Patch voucher

Fill out this quick survey and tell us in 25 words or less your best pregnancy or parenting tip - you'll go in the draw to win a $200 Pumpkin Patch voucher.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Losing yourself to motherhood

While watching your baby grow into a unique little person is exciting and wondrous, the intensity of meeting everyone else?s needs can ever so sneakily overtake your own needs for self-care.

Tearing during delivery: the facts

Almost all women will experience bruising, grazing or tearing after a vaginal birth. Depending on the degree of tearing, there are various treatments available.

6 tips for a day out with a baby and toddler

Outings can be lots of fun with the kids, but there are inevitable challenges. Here's some information about days out to help you be a little more prepared.

Why I invited a dozen people to watch my son's birth

I sent invitations on burgundy scrapbooking paper stamped with a field of poppies, and told each person why I wanted him or her there. I warned that there would be nudity.

Getting labour started: tips for a natural induction

When your baby?s due date comes and goes without so much as a pop - let alone a bang - it can be disheartening. Mums and a doula share their stories of natural inductions.

7 mistakes old hands make with new babies

As I sat across the table from my friend ? me, a seasoned mother of three; her, a brand new mum ? I thought of all the mistakes an old-hand parent can make when visiting a newborn baby.

That's my boy: a dad's diary of the first 4 months

Unbearable anxiety, unspeakable joy, constant exhaustion and bouts of frustration ... The many shocks of first-time fatherhood resound in a dad's diary of his son's early months.

One of the most important things a new mum can do

Finances may not be as cute as a newborn, but with many women?s working arrangements changing post-baby, monetary matters need attention too.

In defence of the bumpie

Are bumpies really "exhibitionism of the weirdest kind", as one writer has claimed?

Personalised baby gifts

We've scoured the internet to find gorgeous personalised keepsakes and nursery decor to record baby name and dates. They make great gifts for christenings, name days and birthdays! (All prices in AU.)

 

My Wellbeing

Making time for me

We look at your wellbeing, covering health, relationships, beauty and fashion, mind and body.

 
Advertisement
 
 
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.