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

 

How to talk about your pregnancy at work

The workplace isn't always a friendly place for pregnant women. Yet working women inclined to conceal a pregnancy from prying coworkers may be better off opening up and carrying on, according to a new study.

Tell us your story to win!

To celebrate Mother's Day this year we are giving you the chance to win one of five great prizes simply by telling us your story.

Where to get help to help your baby sleep

There is so much pressure about having a baby who sleeps 'all night' , it's no wonder you worry about your baby if she wakes in the night.

Vintage baby names having a comeback

What makes some names have comebacks while others silently fade into oblivion? A few factors come into play.

When your partner doesn't want you to breastfeed

Dads can have many reasons for not wanting their partners to breastfeed their baby, but both parents should learn more about it before making a final decision.

Model mum Sarah Stage shares post-baby selfie

Most new mums would recoil at the thought, but Sarah Stage has shared a post-pregnancy selfie just four days after giving birth.

I'll admit it: I have last child parenting fatigue

If you're a new mum and feeling ignored by the older mum/the old hand/the has-been, please know, it's not you, it's me. Blame the last child parenting fatigue.

Exhaustion is not the same as tiredness

Having a new baby isn't tiring - it can be downright exhausting.

Five posterior babies, four home births

I was on a high. I'd done it all by myself with no help from anyone.

Mum's list of birthday gift demands goes viral

We're big fans of kids' birthday parties - but this is one bash we're glad we didn't get an invite to.

Kate Middleton to receive 'loyalty discount' for second birth

Everybody loves a bargain - including the Duchess of Cambridge.

Fish & chip shop owner's sad note goes viral

A lengthy note put on the window of a fish & chip shop has gone viral due to the writer's serious doubts about the romance of travel.

Pregnant women need good nutrition advice, not judgment

Pregnant women are under pressure to do all the "right things" to have a healthy child. It results in women feeling judged about their decisions.

When your child wants you to have another baby

Giving your child a sibling when you don't want to have another baby can be a complex issue.

William Tyrrell's mum speaks out: 'We hope he is still alive'

The mother of missing toddler William Tyrrell says she has a vision that somebody "picked him up and moved him on ... that's the only way ... to explain for him not to be there".

Family comes first for 23-year-old Tommy Connolly

Most 23-year-old blokes spend their hard earned cash on fun times with mates or romantic dinners with their girlfriend, but not Tommy Connolly.

Newborn all-girl quintuplets 'doing great'

The first all-female quintuplets born in the United States were delivered last week, at 28 weeks and two days.

Model mum's big baby silences critics

He may be less than a week old, but baby James Hunter has already helped his model mum silence her critics.

Jammy, Hula Hoop, Rage: Reddit reveals most unusual baby names

A recent Reddit thread has revealed some of the more creative names in the world.

Woman awakens from coma, learns she gave birth

A US woman awakened this week from a four-month-long coma that doctors had feared would be permanent and learned that she had given birth to a baby boy, according to her family.

'Give us a break': mum sent shocking letter over Facebook baby pics

Posting a lot of baby photos doesn't make you a bad person. It may make your Facebook feed a little irritating, but it doesn't make you a bad person.

In defense of the dads who do so much

It's time to shift the focus off what dads aren’t doing and shine it on what they are.

The modern cloth nappies too cute to cover up

If you're only just joining the modern cloth nappy movement, or would like to spruce up your collection, we have to introduce you to Designer Bums.

How breastfeeding can affect your libido

When you’ve just had a baby, having sex isn’t usually top priority. In fact, for a lot of women it rates about as appealing as changing another dirty nappy.

Should pregnant women be allowed to use 'parent and child' car parking spots?

Is it acceptable to use these car parking spots when pregnant? How many of us would admit to doing it?

Healthy baby from sperm taken 48 hours after a man died

Fertility doctors have described their "most extraordinary case" - creating a healthy baby from sperm taken 48 hours after a man had died.

Sign up to our 30 days of #PlayIQ challenge

Sign up to receive 30 amazing tips and ideas for play with baby during the month of April and submit a picture or tip on our social wall for a chance to win an amazing Fisher-Price prize pack.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Last chance to win a year's supply of toys

You have less than a week left to win your child one of five Fisher-Price toy packs valued at over $600 each - hurry, enter today!

Childcare is a big problem, but there's more to it

Let’s keep talking about these issues and not allow them to be put into a neat little box that’s labelled ‘Fix childcare and everything is solved’.

Pink's awesome response to body-shaming trolls

When trolls felt the need to comment on 35-year-old singer-songwriter Pink's weight, her answer was an awesome ode to body love.

Fertility clinic offers egg donors $5000

A national chain of fertility clinics is offering egg donors a $5000 payment to cover their expenses, a first for Australia which is raising concerns the money could act as an inducement.

Baby boy abandoned in India amid fresh surrogacy concerns

Australian officials could do nothing to stop an Australian couple from abandoning their baby son, born through surrogacy in India, after they decided they did not want to bring him to Australia.

Herd immunity and community responsibility: how free-riders can make kids suffer

Individual choice works for haircuts and handbags, but not for preventing infectious diseases that kill kids.

Photographer captures 'unexpected beauty' of birth

If there is one thing Leilani Rogers knows about childbirth, it is that no two deliveries are ever the same.

Expectations vs the reality of making a toddler's clothes

Note to self: less sewing, more life. Not the party dress, but the party. The toddler, as usual, has it all figured out.

Mum meets 'dead' daughter 49 years after birth

In 1965, Zella Jackson-Price was told her premature baby girl had died shortly after birth.

How pregnancy probiotics can help you and your baby

New research suggests that taking specific pregnancy probiotics could be the answer to a range of common pregnancy side effects.

53 creative pregnancy announcements

Announcing that you're expecting can be a time to express your creativity, sense of humour and imagination. Check out how other parents and parents-to-be have broken the news to friends and family.

IKEA hacks for the nursery and kids' rooms

Are you one of those that know the whole IKEA catalogue by heart? Love their stuff but want to personalise it? Here's some inspiration to help you realise the potential of IKEA furniture and fittings.

36 baby names inspired by food and drinks

A French court may have ruled out Nutella as a baby name, but that doesn't have to stop you from taking inspiration from the supermarket (or bottle shop). See what parents in the US have chosen for their delicious little ones.

 

ENTER NOW!

Win a year's worth of toys

Last week to submit a picture of your baby at play for your chance to win. Visit the Play Wall to view our recent entries.

 
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.