Sellers often seem to think that it is a good idea. As a seller, it makes sense to let the buyers make the choice. Your carpet needs to be replaced. It is showing lots of wear. Or perhaps, it is a pretty green. You have always loved it. It goes with your furniture. You know it is not one of today's trendy colors. So, why not give the buyers an allowance and let them pick what they want?
That "allowance you want to give them" is a deduction off the price of the house. That means after the close buyers have to come up with the case to buy new carpet. They may not have it. Particularly in today's market where they need 20% down. Lenders will not let buyers roll the price of the carpet into their mortgage. Even if you have the money held with the escrow for the allowance, the buyer will still fear that it will not be enough to cover the replacement cost.
Then there is the buyer's fear of the unknown. What will the price be to replace the carpet? In the buyer's mind, the carpet costs more than the allowance you want to give them.
"A Tradition Of Sound Advice"
Christine Stalsonburg, Realtor
Coldwell Banker Schmidt Realtors
402 E. Front St. Traverse City, MI 49686