Rick Gomolka Realty

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From the desk of
Rick Gomolka

Call Rick Gomolka if you are.
but read below first!

We now know the internet is speeding up the real estate purchasing process. But buyers act in waves. It's a mood/sheep phenomena. If you feel optimistic you will buy. If rates are favorable you will buy. If it is sunny out you will more probably buy. If you don't catch the wave you will be paddling a long time to catch the next wave. So what does that mean to you as a seller?

When your house hits the market, all the pent up buyers will rush to see your house if properly marketed. If they feel it needs to much work it will sit. And sit. And you will do a price drop. And sit. Smell blood? And Sit. This will keep going until you start to approach wholesale pricing. Your home is either in need of substantial upgrades due to differed maintenance in which you will take the biggest loss or it needs some cosmetic upgrades.

Developers who flip homes with major work must "MAKE THEIR PROFIT ON THE BUY!" The reason is, there is so much that can go wrong on a redevelopment, so why invest in purchasing your home just to lose money? If it turns out there were no major hidden issues (there are always unexpected cost!) then the developer makes a bonus, which no one should begrudge them from your differed maintenance.

Now here is the crying shame. If your house needs some paint, hardwood floors, a new driveway and power-washing, small stuff like that if you don't do it is either of two reasons. You are tight with cash or you are willing to take a haircut on the sale of your price for no apparent reason.. If you are tight with cash, a good agent should be able to get you a crew to do the work with terms or get the bulk of the invoice paid at closing. If you couldn't be bothered or have relocated, expect a developer to do what is called a "SPLASH AND DASH!" They have crews to paint, repair, install. With no major structural issues. They will make a quick $50-100K on your home and move onto the next one. They will do this 10-20 times a year and make $500k-$1MM a year just searching for your property. That's their bread and butter.

The challenge to sellers that set themselves up with, is they assume their home is worth far more because they do not take the effort to go into other homes selling at the moment. So they see square footage, location number of car garages, but they do not see layout and condition.

What happens next is a shame. They don't spruce up the house. They wonder why the house is not selling so they drop the price. More people see the house, but only low offers come in. Endless cycle. If they had put the money into the house it would have sold quicker so there are less carrying cost to pay the mortgage and taxes. Also the "bottom feeders" who are waiting to steal the property at a bargain price no longer are competing with retail consumers because the general consumer has now given up on that house with the exception of new to market eyeballs.

Sometimes I get prospective buyer customers so mad at me because my pictures look so good but the house is in dire need of a paint job. I ask them would you rather I post the worst possible pictures of the property that disgust you? I would not be doing my job if I did post those horrible pictures!