Allowance Versus Doing It Yourself~~ Advice For Sellers

Lots of good advice here.  However, I do try to make buyer more realistic when there is something like an older carpet.  I actually suggest they go to the local carpet store/department and get an idea how much it would cost.  I would hate to have a buyer pass up a house because they don't have correct information... but not all buyer/agents do this.

Thank you for the straight talk.  Well-phrased and right on target.  My other pet peeve is the buyer's agent bonus...like a buyer's agent can talk them into a property that they don't like or want.  ??????

Cherimie, very well explained.  Many sellers want to give a "buyers allowance" because they think buyers then can pick out "their colors. " Not so, many people can't picture "their colors" if they are already turned off.  Also, by doing it themselves, sellers are in control of cost and even have the benefit of enjoyment until the home sells.

Very sound advice,Cherimie.  But I have found that different areas produce buyers that have different outlooks on allowances.  I know in my previous area (the midwest) a buyer would prefer an allowance over new carpet.

The reason?  The figure they can live with whatever the issue is for a while, but they want that money/allowance NOW.  It's not always the most sound decision, but there are a couple generations of buyers that were raised in the 'right here, right now' age.  They don't think in the future, so it doesn't register.  And sometimes there is just no amount of educating that can change that.

Cherimie,  Excellent thoughts.  I have actually gone in and given the homeowner a list of things to do before I will list their home.  I mean A) my photographer has to come in and shoot the home, so if it is not ready we can't do that B) I am not going to put a listing in with either bad photos, or even worse no photo's.  You get the majority of your views and exposure when the listing first hits MLS.

Cherimie - just a discussion I had two nights ago with a potential new listing.  Oh, can't we just give an allowance and let the buyer select what they want?  No ... they could afford new carpet and it was such a distraction to all they had done and the price range.  I explained and told them I know they will get full return plus for that investment.  Like going to buy a new car and they have mud all over one of the selections of many on the lot.  Oh, just wash it off and it will be the same ... no it won't.  Great post and have a wonderful day!

Cherimie,

I agree with most of your blog. Yes, sleeves need to be rolled up, a lot can be done with staging and even disclosing in the listing that items need fixing/replacing, to avoid. !

Regarding Seller Concessions: Why put them in the listing sheet? They are negotiation tools If Needed. After home inspections, that's when the seller concessions come in handy (the problem is it's getting toughter with some of the loans).

Regarding replacing carpets, most my buyers are not interested in someone else's color or fabric choice. Pretty much every house I have sold that had replaced carpets in them, were pulled out for hardwood... I think that's were the seller concession for carpet comes gets recommended. On the other hand, listing agents have removed that concession during negotation due to the price point of the buyer.... Oh well, for every house there is a buyer, sometimes it takes a buyer longer to get through the door!

This is so true. simple nickle and dime repairs are seen as insurmountable by buyers.  $1,000 worth of carpet is looked at as costing ten times as much. Houses need to show like model homes these days to stand out in a crowd.  the only concession that should be considered is one to help a buyer get into a home, not to fix deferred maintenance.

An allowance is not acceptable. The buyers will just move on to the next home.

It's definitely a beauty contest & a pricing war these days girl.  I completely agree.  KM

So true.  Thanks for Sharing.