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Denver Home-Sellers Ask: "Should I Offer a Paint & Carpet Allowance instead of actually doing the work?"

By
Real Estate Agent with Jennifer Allan, Inc.

Question: "Should I offer a "paint and carpet" allowance instead of actually doing the work?"

JA: Homesellers- I feel for ya. When you're getting your home ready for market, the to-do list seems endless, doesn't it? The last thing you want to do is to relocate your furniture to refinish the floors or take down all your artwork to paint the walls.

It would be much easier to just offer an allowance, right? Besides, the buyer probably would prefer to pick out his own carpet or paint color, wouldn't he?

Unfortunately, no. The problem with offering a paint or carpet allowance in lieu of actually painting or carpeting is that these two items are strong emotional triggers for buyers. When a buyer walks into a home, he forms an impression right away that's hard to overcome after the fact. If the buyer's impression is that the home has bad carpet or grungy walls, no allowance will change that initial reaction.

But don't fret! It's the first impression that is most important, so if you're on a limited budget (and who isn't?), just ensure that the flooring in every room the buyer can see from the front door is in the best condition it can be. Same with the paint. A buyer will be more likely to "forgive" bad carpet or not-so-fresh paint in secondary rooms that don't contribute to the critical first impression.

Good luck with your home sale!

Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Here in my area - I would say "No" to your question too. I'm not sure if the answer would depend on regions but buyers these days just dont want to lift a finger and rather pay "more" for the conveniences.

Sep 30, 2009 12:32 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

My question too is: Is the allowances made with the offer - or after we come to an agreed price? I see lots of "problems" here.

Sep 30, 2009 01:11 AM
Sandra White
John L Scott Real Estate - Port Townsend, WA
Experienced Residential Resale Broker

I agree with you totally.  The buyer ususally cannot picture themselves in a home that is not fresh, and you cannot overcome the original impression created by the current homeowners deferred maintainance.  I the homeowner can do the work themselves (painting and landscaping) and get a payment plan for the carpeting, it will pay off big time in the long run.  I once had a buyer renogiate the asking price after an inspection in which the Buyer took more time to look at the carpet.  I was really angry but my broker said it was legitimate to put it in the inspection notice and we took $1000 off the previously negotiated price.

Oct 01, 2009 05:19 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

I think, it depends on the price. If it is a fixer, no ''lipstick on a pig'' will help. It is better be honest and price the property right.

Mar 08, 2015 05:50 PM