Do I Replace the Carpet or Give a Credit?

This questions comes up so often.  Sellers struggle with the dilemma of whether to leave the old carpet and give a carpet allowance (some states do not allow seller give backs so it would reflect as a purchase price reduction) or put down new carpet. 

The best answer is REPLACE the carpet!  Let me explain why I say this.  When a buyer comes into your house and notices the worn out dirty old carpet they automatically make a mental deduction for a carpet allowance from the price THEY are willing to pay, not your list price.  It also plants a seed in their mind about the fact that if the carpet is that worn out and dirty, what else has the owner been ignoring?  Perhaps there is nothing else wrong with the house, but it leaves doubt in a buyer's mind. 

I have heard many times a seller reasoning away replacing the carpet by saying that they feel the buyer would object to whatever color carpet they would install so what's the point.  If you pick a neutral color carpet, most buyers are thrilled to walk in a house that has brand new carpeting.  It gives them a sense that you have taken care of the "issues" before you put the house on the market.  Replacing the carpet will overcome that same objection you will get from buyers every time the house is shown. It will then free the buyers mind to enjoy the house and focus on the assets.

When you do not replace the old carpet, you set yourself up to receive offers well below what you are asking.  Even though the buyer may realize that you will allow for a carpet allowance, once they have seen the house it is too late for the buyer to form a first impression.  It is a natural instinct for a buyer to walk through a house and mentally reduce the price they are willing to pay based on how visually aesthetic the house is.  One fo the few exceptions to this rule is if you have a house on Old Hickory Lake with a boat dock!  Buyers will over look a lot when a house sits on the water.

Don't blow your chances on making a great first impression.  Replace the carpet, WOW the buyer and you then have a greater chance at getting an offer.  Remember that if you are in a buyer's market there is a high inventory of houses and buyers won't hesitate to say........NEXT!!