Ha! This is the portion of the program where you speak your truth brutally and honestly . . . and if they can't handle the truth, they are cordially invited to be someone else's problem. If a homeowner does not understand 'every mess or deferred maintenance = less and less cash for you' they are too dumb to work with. And dumb is a liability for us.

Candice A. Donofrio is right. The conversation with them begins something like "can I be honest with you?  Are you absolutely sure about that?".  Their motivation (or lack of) will likely follow.  

This is supposed to be our teaching moment but I find it hard when the basics like floors being washed are not done. If they can't handle that, how are they going to do required maintenance? Oblivious & lazy is what I like to think.

But like Candice said, no upkeep means lower dollars to you. 

Personally, I'd rather disappoint them upfront.

Tact and honesty and concern are not enough for those with closed minds. They will reject the truth and their minds will not be changed.

Eye-opening events do not disappoint...

Most of the homes I list start out like that. However, thankfully, my clients understand that the home needs to be professionally cleaned, and we get it ready for the prom. We work with what we have - and price it accordingly. 

In my market, those homes are still selling for several hundred thousand dollars above market. And, wait for it, they are appraising! 

"Standards" are getting lower, Shayne. 

Slob houses are indicative of the general decline of our once-civilized Society.

Shane,

And here is Candice A. Donofrio to narrate this part of the scenario! You cannot improve on perfection!

Good point Shayne! I previewed a small (around 1,200 sq ft) residential property for a client. It was grimy, with stuff piled halfway up and against the walls in almost every room, plus several dogs and the mattresses were on the floor with kids laying on them...the renter was a nurse at the local hospital...! 👀

Probably they are hearing buyers are buying everything, no matter in what condition.  Sorry that is all you are seeing.

The whole truth ... and nothing but the Truth!

Nobody takes a rental car through a car wash.  People need to realize a home truly needs to sparkle to get TOP dollar.  Pride of ownership goes a long way.

Isn't the human species entertaining? God must sit watching and say "What have I done?...lol

Next.......unless they understand the real value to expect and then I'd sell it to an investor

This is where photos of the fixed-up homes come in handy.  This is where my knowledge of fixing up homes benefits me, as I can tell them what it would take to bring their house up to that level.  I have the frank and honest conversation with them and if they ignore the facts, then I wish them the best and refuse to take them on as a client.

I once told a homeowner to remove all of the growth from the exterior of their home.  The truth hurt in that case and I lost the listing.  The house sold nine months later $200,000 below the original list price.

If you don't tell them like it is, someone else will. Or, they'll talk some eager agent into doing what they want, only to waste everyone's time.

it's very rare that I have that type of condition unless it's a foreclosure.

Go ahead and tell the truth of the past experience gained by decades in this business.
But the next agent WILL list it and it WILL sell at a price the seller accepted. At a price the seller accepted. Those are the operative words. The prelist dance needs to be done with that in mind.
The truth to accept is not that of the seller but the agent.
The 'judgement' often conveyed in ones telling of truth is not beneficial, but the reality of today's world is 'no one really knows anything." So go with the flow, suppress judgement, play the hand you are dealt, or don't.
The agent and the seller need not AGREE but must understand each other. What happens next is simply based on who the seller believes is being served.

These shoes are made for walking if we can't come to agreement about what "sale ready" means! Life is too short!

Some people ask for the truth, others do not, some can handle it others cannot.

Hi Shayne Stone Well there is a market value for that type of house it is just a different market value than the upgraded homes in the same neighborhood. I like to give them three sets of comps to compare.

1. One for original builder upgrades but worn out and needs work. 

2. Some upgrades of Home Depot quality, nice but not complete

3. Fully upgraded

Let the seller see the differences between these 3 levels of comps and they will see what the price should be.

The fun part of our businesses; reality checks!

In our area any shack will sell. Just handled one all boarded. No one cared about the condition. People will fix it up add a bath or brm put right back on the market. I saw one 5500 sf lot with 3 homes and 2 are not permitted.  People make money lease them out for income.

There is always something different and unusual to deal with.  We just have to grin and bear it.