When do I mention the work to be done?

Question

HI yall!

So for the longest time my family has had a 2BR cottage in Wisconsin as well as a plot of land. Both are lake front properties on a very nice, desirable lake.

We don't want to have either property any more and are looking to sell both to buy a cottage a little bit closer to our area (our present lake is 3 hours away from our home). We haven't listed it with a realtor as we aren't in any huge hurry to sell. A few months ago, in an attempt to get some feelers, we put up a for sale by owner sign out front. We've gotten a handful of inquiries but my Mom, who is handling the calls, doesn't know how and when to notify the potential buyers about a structural issue with the house.

The problem with the cottage is that the floor in the family room is borderline caving in. It's been happening now for some time. Our land is below our neighbors and there was a massive rainstorm that caused the lake to flood, subsequently causing some structural damage (that's the theory at least). We've gotten it looked at and it was estimated to cost about $6k to repair the floors.

So my Q is, how do we handle the maintenance issue without scaring away potential buyers? Those that have called seem to be turned off when we mention the issue upfront. We also don't want to not mention it and have them see it for themselves when they walk in the place if they're interested in looking at in person.

Thanks in advance for any and all input.

Joffrey Long · Answer

I agree with the "fix it" crowd.

Problem I've always had is that there's a "expert / in the business" price to get stuff done, then there's the "scary eyed worried homebuyer" price.

Your price might be $6,000 to get it fixed, but people go in and have no idea, think it costs 3 times more than it does, and if the contractor knows how scared they are, it will.  Then they talk to their friend Edgar, who used to be a room addition contractor in the 80's but still knows everything, and he starts telling them all the other problems that could be there.

Next....... well you get the picture.  Please get it fixed.

Joffrey Long

Karen Margrave · Answer

James Gannon First off, is there any way you can afford to have the problem fixed? If so, that would be the best bet. The reason being, if there is an issue like that, people will want you to discount the price for more than the actual cost of the repairs, and you will end up with less money in the end. If you can fix it, and don't have a problem to disclose, it puts the property, and potential profits in a much better light.

If on the other hand you cannot afford the repairs first, be up front with people, and then price accordingly, with the caveat," Price includes discount of $xxxx for structural repairs to be made before close of escrow."

If you want to do a FSBO (for sale by owner) you might offer to pay selling side of commission, that helps get agents bringing you clients, just put "will coop w/agts."

Get everything else on the property ship shape and you should be good to go!

Dawn Anastasi · Answer

For something like this, you have to disclose it.  Also, depending on the nature, it might be something that would prevent a lender from financing a borrower.  I know lenders are picky about financing properties with foundation issues, roof issues, electrical issues, and plumbing issues.

Ramon Jenkins · Answer

My suggestion only : have an expert perform the work w / warranty
- to get top dollar 
- reputable company to perform the work
- numbers must make sense ( return for your repair investment )

Make sure disclose issue upfront ( warranty )

To be honest: 
if you’re going to sell the next 5 months will be very important 
Due to our weather climate

David Niles · Answer

Something cosmetic that you get people in the door and hope they can overlook or see beyond is one thing, this being structural, you need to be upfront as it saves you and buyers wasted time viewing something they have no interest in. 
I would try and get some more detailed bids and then at least when you mention it to potential buyers you can state you have the bids ranging from $x-$x and roughly what was found to need repair.

My son plays hockey and keeps us busy, backyard rink just completely melted ending our practice sessions, lol.