Buyers Don't Dance With Ugly Houses

A savvy sage once said, “You never get a second chance to make a first impression”. In a competitive buyer’s market that is a price war & a beauty contest, sellers need to realize buyers horribilize house defects and avoid deferred maintenance rather than making any offer at all.

For example, I recently listed a large estate property in Mesa, Arizona that is situated in a good area on almost an acre lot. The seller was advised to paint the peeling fascia trim and front porch immediately to create a good first appearance. The executor declined the $4,000 paint job, but attracted several offers around $100,000 below the list price. The property remains unsold as the days on the market increase.

This past week I closed on a property where the seller was reluctant to spend a few thousand dollars prior to the listing for cosmetic repairs such as a broken arcadia door, pool light, etc. The seller who needed to sell due to a divorce did accept an offer that was $82,000 below their current appraisal.

It is seldom necessary or wise for sellers to make capital improvements prior to selling. But, it is very intelligent to make cosmetic repairs particularly those that can form a first impression for buyers. Broken doorbells, fading front doors, rusted door handles, and cracked windows are repair items that pay dividends.

Some agents employ a ‘smooth move’ approach. This includes pre-ordering an appraisal, termite inspection, and home inspection. All three items will cost a seller less than $1,000.This upfront investment is a lot less than the first price adjustment.

As the song says, there may be fifty ways to leave your lover. Buyers only need one reason to leave a property without making an offer. It’s much easier to invest a few hundred dollars in cosmetic repairs prior to listing, than throw tens of thousands of dollars at a buyer who is retreating from an ugly property inspection.