I cannot tell you the number of times I have worked with a buyer who had a “discerning eye”. Or to put it more bluntly… who were “picky”!
And well they should be! They are about to make what is likely their biggest investment to date. However, when “picky” gives way to “unrealistic” then it is time to have a difficult conversation and possibly introduce alternative options.
Throughout the country, we are experiencing inventory shortages which translate to lack of options for many buyers in competitive price points or areas. There are some areas where it is rare for a home to be on the market for more than a week. I have written several articles regarding handling multiple offers which you may want to review:
However, if you have tried these solutions and your buyers keep running into a situation where the perfect home is going under contract with too many offers, it may be time to employ a different approach and employ the help of a builder or contractor.
Builders and contractors can be your ally in helping your buyer find the perfect home in the perfect area – it just may not be perfect yet. Builders and contractors can take spaces that are not working or need a fresh look and transform it into a truly functional space that not only works for the potential home buyer, but also with an eye for resale down the road, protecting your homebuyer’s investment.
You can start by reviewing your area and determining if there are homes in a lower price point that are in areas that appeal to your potential buyers that can be renovated or added onto within your buyers’ ultimate price points. Additionally, you may want to focus on homes that are not in high-demand because the builder or contractor is going to need some time to determine feasibility.
This solution has pros and cons, of course, which you will want to review with your homeowner before deciding if it is the right solution for them:
- The buyers need to be able to finance a remodel.
- The buyers need to take into account that the builder or contractor may run into unforeseen but necessary repairs that need to be done which could cost thousands more than they expected.
- The builder or contractor should be reputable and be sure of their numbers. If you are providing the referral, provide several.
- There may be a cost to the builder or contractor to draw up the plans and create an estimate. In the event the buyer moves forward with the plans, this may be refundable.
- There may be permit or zoning issues to consider.
If you have been banging your head against the wall with multiple offers, perhaps it is time to take a different approach and consider how your buyers can take an imperfect house in an otherwise-perfect area and make it theirs through a professional renovation.