Northern Michigan Real Estate: Let's Give the Buyer an Allowance

Let's Give the Buyer an Allowance

Let's Give The Buyer An Allowance

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.

Sellers will increase the value of their homeand the a higher price if they prepare the house for sale and replace the carpet with a neutral colored carpet.

If you are curious about what to do to increase the value of your home, call me at 231-944-0854 or contact me at christine.stalsonburg@coldwellbanker.com or visit my web site at www.stalsonburg.com.

 

"A Tradition Of Sound Advice"

Christine Stalsonburg, Realtor

231-944-0854

www.stalsonburg.com

www.northernmichiganrealestatecs.com

 

Coldwell Banker Schmidt Realtors

402 E. Front St.  Traverse City, MI   49686

Christine Stalsonburg, Broker/Owner

Cherry Wings Realty

 

 

231-409-4140

 

 

 

 

 

 

 

 

 

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Comment balloon 2 commentsCherry Wings Realty • April 22 2009 11:29AM

Comments

I have found that it is better to replace the carpet before someone even looks at the house!

Posted by Mike Frazier, Northwest Tennessee Realtor (Carousel Realty of Dyer County) over 10 years ago

Yes, I would agree with that whole heartedly.  It can really make a bad first impression to the potential buyer to come in and see the house that way.  Some buyers do not have any vision of what things will look like when there is new paint or carpet.  Sometimes, it can be a challenge to get our sellers to understand that concept.  When my sellers are a bits stuborn about those things, I try to find the most unattractive home on the market and take them to preview it.  That is usually enough to bring them to the reality of what a potential buyer will think when they come in to a challenged home.

Posted by Cherry Wings Realty, Your Traverse City Michigan Realtor (Cherry Wings Realty) over 10 years ago

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