In business, time is money and risks must be assessed carefully. When you have something that takes you away from your business it will likely have a financial impact. So you have to assess… is it worth it??
Here’s a real-life story:
We represented the sellers for a million dollar listing and had a lot of contact with the buyer, which is rare. We did not represent the buyer; they had their own agent.
After inspections, there were a few items of concern that the buyer wanted to dig into more by getting more specialized inspections completed. This buyer was at the property every time there was an inspection or when having contractors provide quotes for the items of concern. The seller did the same.
At one inspection, towards the end of the due diligence period, the buyer confessed that his “nitpicking” on the inspection items had cost him time away from his business resulting in a loss of $175,000 in revenue in the two weeks he was chasing inspection items and quotes. He realized that he needed to assess the risk of accepting the home “as-is”. By risking a few thousand dollars for potential repairs, he could be taking care of his business and would have made way more than the risk he was facing.
It is always interesting to see the shift in perspective when assessing risk.
As a buyer it is important to do your due diligence. It is also important to know what you might be risking by accepting the home “as-is”. Once you know that, you can assess if the risk is worth it to move forward. You have many options in this scenario and it is a good idea to know your risk tolerance ahead of time so that when it comes down to it, you already know that if the repairs would cost “x” dollars, you’ll be okay if the sellers refuse to do anything or give any money toward those items.
This is one reason it’s so important to work with an agent that you trust. Let them worry about the details so you can focus on running your business!
