Some tips on avoiding a home sale crash.
Tips on avoiding a home sale crash, from my experiences in the building inspection industry since 1978.
Here are some of the main reasons I have observed for property sales not proceeding:
- Sellers and sometimes Agents, not disclosing or covering up major problems they were aware of .
- Expecting a prospective purchaser to accept costly repairs of major the problems they were not made aware of, before allowing them to sign a contract.
- Still expecting the buyer to pay the original agreed price for the property.
- Not allowing any negotiation to compensate the buyer for cost of rectifying the problems.
No one likes unpleasant surprises, especially when heavily mortgaged and having to pay for rectification costs on top of the house purchase.
- Be upfront with a prospective purchasers by making them aware of any major problems before allowing them to sign a contract.
- Disclosure of known major problems is essential if a seller wants a sale to go through without a hitch
Disclosure can be an inconvenience if someone decides not to sign, but nowhere near as painful as when a contract falls through, for all concerned!
An example of how disclosure helped a property sale:
In the late 1980’s I carried out an inspection in an inner city suburb of Brisbane, the house was reasonably large and of a traditional style, therefore quite expensive so the buyers expectations were high. The building required replacing of the stumps, roof sheeting, gutters and some plumbing. These in most circumstances would be considered normal for the age of building, depending on the buyers expectations and asking price for the property.
With a client consultation on completion of the inspection, as I made the client aware of the main problems they (surprisingly to me) were not worried at all as they informed me that the Agent made them aware of the main problems before they signed the contract.
The sale went through without a hitch! This is what disclosure can do for you.
This was one of the most satisfying inspections I have ever carried out!
Property seller tips on avoiding a home sale crash
- Inform the Agent of any major problems, when listing the property and definitely before a prospective buyer signs a contract.
- Rectify any major problems, fully and properly, as if you were not selling, not a bandage job!
- Take photos before and after also during the course of the rectification
- Only use reputable firms with a QBCC license that will guarantee their work!
- Make sure any guarantees are transferable to the next owner (within a reasonable period)
- Keep all documentation, plans and approvals (building & plumbing), photos, receipts, termite treatments, appliance warranties, etc in a folder ready to pass onto the next owner
- Obtain approvals of building/plumbing additions or alterations of items you know that have not been Council approved
- Pool building approvals, enclosures and certifications.
- Keep maintenance up to the property and buildings.
- Be realistic if the buyer wants to renegotiate on major problems, put yourself in their shoes.
Following these recommendations may help improve your chances of a property sale!