This is an analysis currently making the rounds. Actually, there is a great deal of truth here. Sellers should be advised of the potential views of many Buyers. There are of course numerous exceptions. It’s a large large and the property will sell for the price of the land. Same price even if you spend $50,000.00 on the kitchen.
Sellers (hopeful)
What you see: “This kitchen just needs cosmetic updates!”
“Someone with vision will love this!”
Buyers (almost all)
What buyers see: “$40k kitchen reno before I can use it.”
“I have to live in a construction zone for 6 months.”
Sellers (hopeful)
The potential gap:
Sellers: Worth $500k with some minor work!
Buyers: Needs $80k in renovations. I’ll pay $420k.
The buyer who “sees potential” wants an $80k discount to deal with it.
Why “potential” doesn’t sell:
1. Buyers don’t want projects
They want move-in ready, not move-in-and-renovate.
2. Buyers can’t visualize
You lived there 10 years. You know what it COULD be.
They see what it IS.
3. Buyers do the math
Outdated kitchen = $40k
Ugly carpet = $8k
Overgrown yard = $5k
They’re subtracting $53k from your price.
The brutal truth:
Option 1:
- Fix it yourself
- Spend $30k
- Sell for $70k more
- Net $40k profit
Option 2:
- Sell “as-is with potential”
- Spend $0
- Buyer demands $70k discount
- Net -$40k loss
What buyers actually think:
You say: “Hardwood under the carpet!”
They think: “Why didn’t YOU remove it?”
You say: “Easy cosmetic fixes!”
They think: “Then, why didn’t you do them?”
You say: “Priced for potential!”
They think: “Priced like you’re lazy.”
You don’t need to renovate everything.
But you DO need to:
- Deep clean
- Remove clutter
- Fix obvious issues
- Paint neutrals
- Mow the lawn
- Cost: $2k-$5k
- Return: $20k-$40k
The truth:
Buyers don’t buy houses for what they COULD be.
They buy for what they ARE.
Or they discount heavily for the work.
Your choice:
- Fix it and get top dollar
- Price it like the fixer-upper it is
- Watch it sit wondering why “buyers don’t see potential”
They see it. They just don’t want to pay full price for your to-do list.
COMMENT
It’s extremely important for Listing agents to have a careful conversation with the Seller about the discounts being sought by Buyers in a Buyers’ market.
Brian Madigan LL.B., Broker