Here’s when it does and does not make sense to pay for repairs.
Today I want to talk to you about an important topic that a lot of agents don’t understand. Whether you’re representing the buyer or seller, when does it make sense for you to cover repairs?
“Deciding if you should pay for repairs is about understanding and communication.”
This is something I hear from agents often, but it seems like most think it’s the equivalent of throwing in the towel. This couldn’t be further from the truth. **In reality, offering to pay for repairs yourself can be a powerful negotiating tactic. **
If you decide to pay for repairs, it isn’t about giving up; it’s about communication and understanding. While this is an important tool in any agent’s repertoire, you should be careful about using it correctly. If you default to paying for difficult items yourself, it could cost you in the long run when you get busier.
To get better at your job, you should attempt difficult negotiations and only pay for repairs if nothing else works. Don’t be afraid of having hard conversations with your clients. I know it can be uncomfortable, but it’s worth it to improve as an agent.
I was training an agent who somehow got in his head that he needed to pitch in to close deals. After a while, he was regularly paying $600 or so every transaction. At that point, you’re practically working for free. Knowing when to pay for repairs is a fine line. If you avoid it too much, you’re ignoring a powerful negotiating tool. If you do it too often, it could cost you long-term.
If you have any questions about today’s topic, please call or email me. I’d love to speak with you!
