Sellers often prefer to make it sound like a good deal when they offer to credit buyers for something rather than spend for the item.
Though it may sound good on paper it is better to spend the few thousand dollars and take care of the item .
I am not suggesting that sellers replace carpet if it is in good shape. This post is for homes where the carpet is worn out and has stains that cannot be removed and the seller can afford to replace it. If you see homes sold by flippers you will see that they make a profit by just making cosmetic improvements- paint and carpet.
A buyer who buys your home may need seller assist towards closing costs . Lenders allow only a certain percentage of purchase price towards seller assist . If you add the amount of credit towards say new carpets to the amount needed for closing costs it may exceed the amount allowed.
If the carpet is in poor shape it may not create a good first impression. A house that shows well sells quickly and for more money than a house that does not show well.
When buyers make an offer on a house they base it on condition of the house and if you say you are giving them a credit of $xxx they may feel they need more than that amount and offer less.
New carpet makes a person feel like it is a new home.
If the carpet does not need to be replaced and can be made to look good by steam cleaning, I am not suggesting that you instal new carpet but if it is in poor shape and you are thinking of giving buyers credit for new carpet I feel it is better to replace the carpet with neutral colored carpet.
If there are items that need to be repaired and you want to credit buyers for the items , it can be a red flag for the lender. The lender will want to know what items need to be repaired . They have a check list of items that need to be in good condition . The buyer may need a renovation loan or will have to fix the items before settlement.
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