Short-term decisions, long-term consequences:

One of the most unique and challenging aspects of being a Realtor is that of working with a home seller to reconcile their shortterm decisions with the long-term reality of the situation. As one would imagine, this is not an easy conversation to have and is compounded by the fact that selling a home brings forth a great deal of emotion for people. There is just no avoiding the fact that an individual’s home is, by nature, a major part of their overall life. Due to the length of time we typically spend in our home (years if not decades) it is easy to overlook how certain short-term decisions can impact the eventual value and salability of the property. After all, something like the decision to paint a child’s bedroom their favorite shade of pink is a personal one and not something that would typically be thought of in the context of a future buyer of the home. Many times we even see things like room additions or garage conversions that have been completed to help with the space requirements of a growing family. Furthermore, it is not uncommon for these short-term fixes to be completed without obtaining proper permits or even constructing them to code. It is a matter of “We need it today, so lets just get it done.” Unfortunately, the long-term consequences can often present a greater problem than those which were solved by the decision in the first place. Obtaining permits after-the-fact is significantly more difficult and in some cases impossible altogether. If permits can be obtained, there are typically additional fees and penalties that are required. Sometimes as luck would have it, a buyer can be found who will accept the property the way it is. However this rarely occurs without the expectation of a significant discount in the price of the home. In short, all of the costs and inconveniences that were thought to have been avoided were really just pushed forward to another day.

In a market that is extremely competitive, homebuyers are often forced to “settle” for a home that has flaws such as a poor location, non-functional floor plan, or deferred maintenance that they don’t have funds to immediately repair. These buyer eventually become accustomed to the eccentricities of their home and almost forget they are even there. Neglected repairs are put on the back burner, or put off entirely as life gets busier and more expensive. But the day of reckoning always comes - and it often does so when the homeowner decides to sell.

These days, there is the additional complication of a solar lease agreement on many homes. Some homeowners were simply “sold” onaproduct that they did not fully understand, some succumbed to peer pressure (everyone was doing it) and some truly felt like leasing a solar system was the right decision at the time. The unfortunate reality is that a leased solar system typically becomes a lien on the property to which it is attached and therefore by default becomes a negotiating point the minute the homeowner decides to sell. Many of the agreements have turned out not to be as beneficial as they were originally believed to be and as information has become more readily available, potential buyers now know to be aware and skeptical of these systems. As with the unpermitted addition or custom paint job, the true cost of these short-term decision will only be realized at a much later date…