I have never had anyone come out and see for sure, but I have found a baseboard that was eaten away. The footer behind it is solid as steel however. I also found what I THOUGHT was a crack that turned out to be a path eaten through the PAPER on the sheetrock. In the process of remodeling, I have checked studs etc and everything seems solid. IF this is termites, but damage is not severe, what is a reasonable discount to give the potential buyer as compensation? Should I knock 5k off the price? Similar homes are selling between 88,000 and 98,000. I have installed new carpet, laminate floors, ceramic tile, 2 complete bathroom replacement. Will the upgrades and improvements offset the extermination process? Should I just stick with market value?
2006-10-06 04:59:21 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
If someone has an inspector come in before buying the house, it is going to be obvious about the termite problem, and it may cost the sale.
Why don't you have an exterminator come and give you an estimate? If it is reasonable for you to do so, have the problem taken care of.
2006-10-06 05:07:49 · answer #1 · answered by missportal 2 · 0⤊ 0⤋
I am going to assume that your area is a buyers market. This puts the buyer in control of the negotiations and you at a disadvantage. In this secenario, it would be best to have the termites mitigated and any damaged repaired. Disclose that you found termites, treated the areas and repairs were made, provide documentation from licensed contractors. This eliminates the issue before it becomes one. Many areas of the country have termites so they may become more like background noise.
If you just disclose the potential buyers will move on to the next property that doesn't have the spector of being a big problem.
You have done some great upgrades and if you don't aggressively address this a buyer could end up thinking "what else is hidden in the renovation?" Price the house to sell in your timeframe - lower will sell quicker, higher slower. Its simple realtor economics!
//Rick
http://paccrestinspections.com/
2006-10-06 13:36:02 · answer #2 · answered by Rick B 1 · 0⤊ 0⤋
First, for a bank to loan to your prospective buyer you will need a "Termite Inspection". Then this should give you an idea of what you may have overlooked. If, the house will pass inspection after your repairs, then you good to go. If, the inspector finds a problem you may have to repair it before the Bank would loan any money to the buyer. So, odds are you will fix and then sell at fair market price which is usually done by an appraiser and paid for by the buyer. You can go ahead and have the house appraised at your expense so you not over-pricing and be asking a good price. I not sure, but, normally an appraisal was good for one year. It is usually a good incentive for the buyer if you already have it done. You may be able to do this with your Termite Inspection too, plus it may help you clear up any problems before you get a buyer.
2006-10-06 12:14:05 · answer #3 · answered by Snaglefritz 7 · 0⤊ 0⤋
I would have someone come out and give you an inspection for termites. It might be WAY cheaper to have the house fixed and the termites run off. And that way you arent trying to talk a buyer into getting a house that is being eaten away. If I was a buyer and knew you had termites I wouldnt give you the time of day no matter what you fixed up or how cheap it was!
2006-10-06 12:08:16 · answer #4 · answered by katybeth212001 3 · 0⤊ 0⤋
List it at whatever you want (I would stick with the market value). The potential buyer will (or should) have a termite inspection done and can make an offer based on their determination of the cost of any repairs.
It isn't necessarily termites. Let them worry about how much discount termites are worth and you can accept or reject the offer accordingly.
2006-10-06 12:06:44 · answer #5 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
The discount be at least that which it would cost to repair or return it to a non-termite state.
You have to sign a disclosure agreement indicating you have disclosed all significant flaws to the house. You should get a 3rd party to assess the damage because you mayor may not have to disclose. If you have to disclose and keep it at market, you won't get list price. If you have to disclose but don't you're setting yourself up for a lawsuit.
2006-10-06 12:05:01 · answer #6 · answered by aint_no_stoppin_us 4 · 0⤊ 0⤋
Have a home inspection done. Find out the extent of damage. This is something that the buyer will have done anyways. Get it done now, so there are no surprises down the road.
2006-10-06 12:03:02 · answer #7 · answered by Justin 3 · 0⤊ 0⤋
Just get an estimate for repair of the damages and give an allowance to cover it. You could even have it repaired as part of the contract and paid out of escrow.
2006-10-06 12:06:12 · answer #8 · answered by Daddy of 5 4 · 0⤊ 0⤋
market value minus cost of repairs of existing damage and cost to rid and prevent termites.
2006-10-06 16:31:44 · answer #9 · answered by Anonymous · 0⤊ 0⤋
NO
2006-10-06 12:07:29 · answer #10 · answered by newyorkgal71 7 · 0⤊ 0⤋