pest reports
Managing Buyer Repair Requests to Buy a Home in Elk Grove
Managing buyer repair requests is an art form. I can always spot that experienced buyer’s agent who invests the time to educate her buyers. It’s as plain as day. Some buyer’s agents simply take orders from their buyers. Don’t know why. Who is the professional and who is the client? I suspect some agents don’t know the answer to that question, so they allow their insecurities to bubble, to thrive and to rule. Agents don’t want to tell a buyer to back off or calm down or listen to reason, not in those words, of course. They want to be a buddy. And that’s the problem.
If an agent can’t find a way to explain to a client why the buyer’s chosen plan of action is harmful and a really bad idea, then how is a buyer’s agent representing that client? What kind of service is that? I tell you what it is. It’s called lip service, for some of you younger guys. Lip service is a disservice. Just like agreeing for the sake of harmony when the agent knows it is wrong. The best way to engage in managing buyer repair requests is to have a conversation with the buyer prior to inspections. To review other types of inspections and to prepare the buyer for the inevitable: The fact their dream home has things wrong with it and damages the seller might not fix.
This is never time “wasted” on behalf of the buyer’s agent. Yet so few set aside time to discuss aspects of the transaction with their clients.
I’ll give you a case in point. Yesterday, I closed a listing in Elk Grove. A sale which I sold twice and got paid once. Nobody likes to do that, albeit it is less work for me than the poor buyer’s agent who now has to hit the street to show more property or, worse, lost a client over it. In this scenario, a buyer’s agent begged me to show compassion toward his buyers. The agent made a plethora of promises he ultimately could not keep. When I hear from that agent in the future, I shall no longer hold a high opinion of that agent. The opposite. He lied. Repeatedly.
— Which is unacceptable in my book. Other agents say, hey, we all huff and puff and fluff, get over it. But, no. We all don’t huff and puff and fluff. —
After promising his buyer would purchase AS IS, he sent the sellers a 14-item request for repairs. It included things like replace all the fixtures and faucets in the house, replace the siding, install new windows. Crazy-ass stuff. The one thing he should have focused on was replacing the leaking water heater and he might have closed. Focusing on one major item is a sign of a smart agent. But no, they tend to get caught up in drama.
I tell sellers not to do repairs after they get a home inspection. But they take it personally. They actually want to fix broken things. It’s hard to get them to back off and wait for a request. Because what they think a buyer will want fixed and what a buyer really wants are two completely different viewpoints. No sense fixing stuff the buyer doesn’t care about. No two buyers are ever the same. After the existing buyers canceled, we found another buyer right away. Of course, this new buyer did not care at all about the home inspection. Just like I said. Those buyers had an agent who was adept at managing buyer repair requests.
Also, in this particular transaction, when our winning offer arrived, we already had a counter offer out to another buyer. That buyer was slow to respond. His agent did not appear overly motivated, either. While that counter offer was out and awaiting buyer approval, we received the offer we really wanted. Bay area buyer. Cash. $5K over. So we sent the second buyer a withdrawal of offer, withdrew that counter offer, and accepted the offer we preferred.
The sellers had already decided at that point to replace the water heater. It was expensive. Cost $1,400 to replace a 40-gallon water heater. Yikes. For that price, one may as well go tankless, but I digress. Last water heater I helped a seller replace was $750. Only a few years ago. However, these particular buyers had paid for a pest report. The first set of buyers did not. See? They don’t always get a pest. The pest showed $7,500 of Section 1 work, plus more for Section 2.
We had bumped up the sales price by $5,000, so we reduced it by $5,000, which made the sellers even. Even Steven. No pest work, and we closed with a cash offer. 9089 Paseo Grande Way, Elk Grove, CA 95758 closed escrow on September 12, 2018 at $339,999.
First-Time Home Buyers in Sacramento Just Closed on Anna Way
All kudos in this transaction have to go to the selling agent, Julie Reardon, a Lyon Realtor, for making sure her first-time home buyers in Sacramento got their home. Julie did everything right. In fact, if it wasn’t for Julie, I’m fairly certain her buyers would not have been able to buy this home. It was her attitude that made all of the difference. She was upbeat, positive and earnest, presenting her buyers in the best light possible while remaining respectful of the situation and the sellers.
She also persuaded me to want to work with her. No easy feat somedays in this business, LOL. I can be stubborn and grouchy. This was not a circumstance of bulldozing her way into a purchase offer, either. Quite the opposite.
I listed this home on Anna Way from our second home in Hawaii last month. Although my team member Josh Amolsch sold the home to the sellers, I had not seen it yet, apart from photographs. There was quite a bit wrong with the house. Deferred maintenance. The pest report was not pretty.
On top of this, I’m not sure any of the occupants in the home spoke much English except for the Cambodian seller. He had his parents living with him, and 3 little girls, and his wife. His hands were full. He also owned a bakery in the city of Davis, but people were not buying luxury doughnuts anymore. So he planned to move to Maine. Haul his entire family to Maine. I only hope they are not in for a shock when it snows and blizzards set in. Having traveled to Cambodia, I have a special soft spot in my heart for Cambodian immigrants trying to make it in America.
The lender had asked for a copy of the pest report, and my heart began to sink. Oh, no. I thought for certain they would want all of that work completed. Our agreement between the parties was the home would be sold AS IS unless the lender required repairs. In that event, the seller would cure any defaults demanded by the buyer’s lender.
Fortunately for the seller, the only thing the bank insisted we fix was a leak behind the shower. It meant removing drywall. Drying out the area. Repairing the leak. Treating the wood. Replacing the drywall. And it was almost $1,800 to fix, not nearly the total amount on the pest report, though. At least these first-time home buyers in Sacramento do not have to deal with a stinky bath anymore.
These buyers had been evicted after living in their home for 16 years. Their landlord decided to sell the house and evidently not to them. They have 2 children of their own plus they care for 2 other kids. They needed an affordable home, and there are not very many homes on the market anymore that suit the needs of first-time home buyers in Sacramento.
Julie downplayed her experience, saying she has not been in the business as long as I have and welcomed any tips I could give her. She doesn’t need tips. Ha! She’s doing a great job. There aren’t many agents with the kind of longevity I have in the business but it doesn’t mean agents without as much experience are any less effective. No siree. Julie is a perfect example of a fabulous Sacramento Realtor who wants what is best for her clients and it shows.
Congratulations, Julie, on a smooth closing.
2512 Anna Way, Sacramento, CA 95821 closed escrow on July 30th at $230K.