How Inflation Affects Buyers and Sellers

Dated: March 1 2023

Views: 147

Ok. I’m not talking about interest rates now. What I’m talking about is repairs. You may have put off a repair (paint, roof, plumbing work, dry rot, pool surfacing etc) because it was just not in the budget. And maybe you got a bid a year or two ago for that work so you have an idea in your head of what that repair might be if your buyers agree to take it on. The problem is everything is inflated right now - parts AND labor. Roof replacements have doubled. Plumbing repairs have probably increased by 75%. Small parts have doubled. There is huge demand on service providers so they can ask whatever exorbitant rate they choose and people will pay it because there are no options! I’m not saying this to scare you - but it’s important to be realistic with how inflation is affecting home sales. Buyers know that repairs are expensive so they are less willing than ever to take on even the smallest of projects. So what do you need to do: be aware of the reality of the situation. You may get your asking price but you might also get a big repair request and it’s important to be prepared that the bids are going to be much higher than you expected. If you can work with your agent to get any items done prior to marketing (and paid out of escrow) - it could be well worth it.

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Melanie Webb

Hello, and welcome to my real estate website. I am Melanie Webb, a tenured real estate agent in the Sacramento, California region.I have worked in the real estate industry since moving to the Sacramen....

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