The nice folks were readying their home for market when the question came up, "Should we replace the carpet or offer a "Carpet Allowance?"
My input?
"If you can afford to, replace the carpet with a good mid-grade carpet in a neutral color. It will save you money and take all carpet discussion off the negotiating table. Furthermore, if you have estimates in the $3500 range for carpet, you need to think about an "allowance" costing you more like $5500-$6000.
1. Buyers will want to be compensated for their time and effort to have the carpet installed, and the fact that they won't order carpet until after closing. They won't be able to move in until the carpet is installed. That may be 2 or 3 weeks, which means most of a month's mortgage payment consumed on a carpet project. So they will want compensation at a higher level than the allowance.
2. You will lose Buyers who will not look past the stained carpet and see the beauty of your home. They will be gone and all you will hear from their agent will be, "This floor plan didn't work out." Many buyers just don't want the hassle of renovation after purchase. That is why new construction is 50% of our market here.
3. Furthermore, the offering of allowances indicates that you may well be offering your home from weakness, in a distress sale. Offers may be low, as Buyers will think the entire property might be a "fixer-upper."
The bottom line? As best as you can afford, put your best foot forward...on new carpet.
Comments(8)