Allowance: Effective For Your Kids, Not For Your Buyers

When sellers consider putting their home on the market and the carpet or counters or vanities or light fixtures, etc are outdated, the all-familiar debate ensues - upgrade now or offer an allowance to potential buyers? 

Many sellers think it is wise to offer an allowance and then the potential buyers can select what THEY want to put in.  There are several backfires to this theory. 

The first backfire is that buying a house is often an emotional decision.  If a buyer doesn't fall in love with what they see upon entering the house, it is harder to appeal to that emotion with a small product sample of what they COULD have. 

Additionally, living through renovations or even just organizing installation of carpet or counters or vanities or light fixtures, etc can be a hassle not welcomed by buyers who are already stressed out by the moving and home buying process. If the upgrades were installed before the buyer first laid eyes on the house, then this issue would be eliminated. Many buyers highly value "move-in ready" properties. 

Thirdly, sellers are often afraid to move forward with upgrades now because they think, "What if potential buyers don't like what I pick?" The reigning guideline when preparing a home for sale is to go neutral.  I have yet to hear of a potential buyer saying, "I don't want that house.  That nice, new carpet is too neutral for me. I'd rather go buy the house with outdated, pink carpeting and pick something else out later."  Many real estate professionals would agree that 9 times out of 10 the brand new and neutral carpet or counters or vanities or light fixtures, etc will win out over a buyer seeing dingy items but knowing that they can be replaced with an allowance. 

Of course there are instances where it is impossible financially for a seller to make upgrades and the only way they can facilitate changes is to offer an allowance out of closing proceeds; however, if it all possible it is most effective to make smart upgrades now rather than later.

For more information on Home Staging services in Omaha, Nebraska, please call Ross Designs at 402.490.3244 or visit our website for more information at www.ross-designs.com.