Is it better to list at a lower price? or to include a repair credit?

[Belinda Lopez]

I have an investment property I'm about to list on the local MLS for a retail sale. It needs about $10k in repairs, $4k for foundation work, $4k for a new roof and misc cosmetic items. I do not want to do any repairs but just list as is. So would it be better to list the property at a lower price of $65k or at $75k and give them a 'repair allowance' or discount of $10k, effectively bringing their price to $65k. Any advantages/disadvantages to either strategy?

[Mark Ferguson]

Originally posted by @Bill Gulley:

That's investors talking, if an investor is your likely target market, as is would be fine. If you want to target the general public, like 100 times more prospects, then the higher price with repairs made, since repairs will likely be required to close financing. Your target market will better define which direction you need to list it. You can also list it with repairs and footnote a lower as is price being considered as well, or, the other way around. Listing at the as is price will likely get more looking, they can then see the alternative offer that might be available. :)

 I think he is saying he is not doing any repairs, but wants to know if a price of 65k or 75k with a 10k repair allowance is more enticing.  The lower price is always more enticing in my view.