Am I obligated to answer?

RoseAbbeyMay 23, 2012

I am selling my flip FSBO. I had a realtor call me and ask some questions about the house, he said he had a client coming in to town next week and may look at the house. One question was how much money did we put into it and did I have receipts to back it up. Am I obligated to answer that question?

Thank you for reporting this comment. Undo
terriks

No. What you paid and how much you put into it has no bearing on the current market value. The buyer should base their offer on comps, and not what you paid for it.

    Bookmark   May 23, 2012 at 3:14PM
Thank you for reporting this comment. Undo
RoseAbbey

Thanks terriks. I hesitated in my answer to him, but I told him to bring me an offer and then we would talk about it, but after I hung up I started thinking, this doesnt sound right to
me. No one asks a builder how much money he has tied up in his new build!

    Bookmark   May 23, 2012 at 3:25PM
Thank you for reporting this comment. Undo
terriks

It sounds like he is just fishing for information to determine what your bottom line might be.

    Bookmark   May 23, 2012 at 3:44PM
Thank you for reporting this comment. Undo
RoseAbbey

I think so too. He said something about due diligence, after I told him to bring me an offer and then we'd talk. Not sure what due diligence has to do with it.

    Bookmark   May 23, 2012 at 4:01PM
Thank you for reporting this comment. Undo
weedyacres

We just had a showing and the potential buyer was pumping my husband for info about how much we put into the house (we're asking a couple hundred grand more than we paid for it, and we completely remodeled it). Same deal: it's irrelevant. What matters is the market value now. Makes no difference whether we're losing money or making boatload on the deal, the market value is what it is.

They can do whatever due diligence or research they want to, but this isn't a court of law. They can't subpoena your receipts or anything.

If the realtor asks again, I'd just smile coyly and say "nice try."

    Bookmark   May 23, 2012 at 8:43PM
Thank you for reporting this comment. Undo
RoseAbbey

Thanks weedy, good response.

    Bookmark   May 23, 2012 at 9:36PM
Thank you for reporting this comment. Undo
brickeyee

"One question was how much money did we put into it and did I have receipts to back it up. Am I obligated to answer that question?"

None of their business.

f they want the purchase price it is a public record in many places (it is often stamped o the deed by the clerk recording for tax purposes).

Anything else is non of their business.

I renovate and repair old houses.
The material costs are often a small fraction of the expenses incurred since I do not normally pay myself till the sale is completed and I personally perform the vast majority of the work.

Just look at anyone asking a say

"Why would you ever care about my personal business?

How much money did you earn last year?"

    Bookmark   May 24, 2012 at 8:38AM
Thank you for reporting this comment. Undo
RoseAbbey

Thanks brickeyee. The agent did know what we bought it for, he had looked it up, he mentioned the amount.

    Bookmark   May 24, 2012 at 9:41AM
Thank you for reporting this comment. Undo
azmom

The realtor and the buyer should know even if they has access to all of the receipts that has nothing to do with the selling price a seller would accept. They just want to use the information for bargaining.

Market price is set by prices accepted by sellers, it is not Value; it is why there are 'a steal' or 'over priced (than value)'.

    Bookmark   May 24, 2012 at 10:29AM
Thank you for reporting this comment. Undo
RoseAbbey

azmom, I think market price is set two ways. If a buyer's market, the price set by what buyers are willing to pay for a property, in a seller's market, what the seller is willing to accept.

    Bookmark   May 24, 2012 at 10:43AM
Thank you for reporting this comment. Undo
sweet_tea

Can't blame them for asking. I would never answer this directly but would take the opportunity to mention many of the upgrades that you did or the prior seller if recently:

It has new flooring, new AC, new roof, new plumbing, new cabinets...... Then you stay silent.

If they ask again for cost of these upgrades you can tactfully avoid an answer at same time "selling" the house. Maybe you say " It is a 19 SEER Trane HVAC installed last year and was $8000. It has a 10 year warranty and the elect bill went from $250/mo to $80/mo.

If they ask again for costs, you can brag about the expensive brand name cabinets or something else that is high dollar in value.

The new roof is a 30 year architectural shingles and was $9000. Things like that. But not line item of everything.

I would never say "none of your business" straight out. Want to be tactful. Don't have a file of all the records in one place....and then mention the high dollar sellable features....

    Bookmark   May 24, 2012 at 11:01AM
Thank you for reporting this comment. Undo
brickeyee

"I would never say "none of your business" straight out. Want to be tactful. "

When someone else shows no tact putting them back in place is hardlyy out of line.

    Bookmark   May 24, 2012 at 12:56PM
Thank you for reporting this comment. Undo
sylviatexas1

maybe not out of line, but it would dampen a person's enthusiasm for buying your house!

    Bookmark   May 24, 2012 at 1:14PM
Thank you for reporting this comment. Undo
gardenspice

I think this is one of those situations, where you roll your eyes, look pained and say "oh , much more than I'd ever admit!" Then smile coyly.

    Bookmark   May 24, 2012 at 3:02PM
Thank you for reporting this comment. Undo
jane__ny

I would just say, 'we spent a bundle of money on improvements...I lost count of how much.'

Jane

    Bookmark   May 24, 2012 at 5:10PM
Thank you for reporting this comment. Undo
brickeyee

"maybe not out of line, but it would dampen a person's enthusiasm for buying your house!"

Does not sound like a person I would even want to try dealing with.

    Bookmark   May 28, 2012 at 9:23AM
Thank you for reporting this comment. Undo
covingtoncat

He's fishing, its rude and irrelevant. If you paid retail for everything and had it professionally installed, you paid big bucks. If you shopped deals and DIY'd you paid less. End result is the same. Its NONE of their business. If he is savvy, he can get a good idea of the value.

Just my .02. I would try and be polite, but I would not answer. I really like Sweet Tea's suggestion to turn it into a marketing opportunity.

    Bookmark   May 28, 2012 at 2:03PM
Thank you for reporting this comment. Undo
stinky-gardener

When asked, "What did you spend for improvements?" I'd throw a question back.."What does it *look* like I spent?" Isn't that a big part of what really matters? The other part is a need for buyers to understand the "unseen" bells and whistles.

Sweet tea's details about the heating and cooling system exemplify details that should be shared...*Trane, energy efficient, 2-zone, 10-yr. warranty on all parts and labor..*

That's not too personal to share or too much information. That's a buyers right to know and part of YOUR selling strength! When you have gone to the trouble and expense to make quality improvements, you NEED to brag about them!

That doesn't mean dropping price tags all over the place, but DO share details about quality, performance and functionality of materials and equipment you've installed.

    Bookmark   May 30, 2012 at 4:55PM
Thank you for reporting this comment. Undo
gmp3

What it is worth and what you put into are two different matters. You could spend 20K on a hideous kitchen or frugally spend 6K to update and end up with a wow kitchen worth more than your investment. Wool carpet in hot pink might be $70/yard but it will not increase the value of the home as much as $18/yard beige frieze from HD.

I would let them know you have receipts for mechanical items to prove age, manufacturer and that they were professionally installed.

    Bookmark   June 5, 2012 at 12:01AM
Sign Up to comment
More Discussions
Lady Realtor coming to house at 6:30pm and its dark outside?
I was looking up homes for sale around me on trulia...
tlbean2004
Realtor company fee
Buyer agent told me there is $300 fee to realtor company....
net42k
Seller not allowing final walk-through before closing
Hi, I am struggling with a strange situation in my...
musicgold
escrow account for a repair
We received an offer on our house! The house is priced...
karin_2009
CO inspections...and other issues/questions
Son is buying a 1951 home. Inspector noticed the top...
cindywhitall
People viewed this after searching for:
© 2015 Houzz Inc. Houzz® The new way to design your home™