Home Seller Quandary: Fix Up House Or Offer Credit?

Offer a credit if your area is taking a long time to sell or just lower the price.  If it is cheap enough it will sell even with problems

I have had the best luck with advising clients to turn the lack of improvements into a positive.  Either price it appropriately and market it as a "vintage" unit just waiting for the buyer's touch.  Or do a display in the property with carpet & flooring samples, countertop samples, etc and quotes for upgrading everything, with flyers (BUYERS PICK YOUR COLOR or something along those lines) advertising what credits the seller is willing to give -- buyers inevitably ask for more money than is reasonable, this way, your seller is, in effect, saying "Hey, I'll pay for new carpet but I'm not paying for hardwoods."  If the buyer wants to upgrade beyond what the seller is offering, then they at least have the credit toward what THEY want.

The buyers typically get excited by the "shopping" aspect of this approach instead of focusing on just how ratty and nasty the carpet really is.  ;-)

I have seen soooo many properties with brand new (but CHEAP) carpet be sold, only to drive by the following week after settlement and see all that brand new carpet being ripped out by the buyer who wants better quality or hardwoods. It seems there should be a better way.

Along the same line price the house in line with the market, take in consideration the repairs needed. Don't offer the credits up front but rather use them with the counter offer. This will also help you get the the seller to put in the counter offer if they were on the fence or just wanted to kill the offer.

I currently have a seller with a terrific condo much in need of some work.  My advice is to always do the lesser expensive items such as paint so that the listing does not turn off buyers.  A credit for more expensive things allows the buyer to select the final items.

Price is the determining factor for most buyers to even look at the home and if it needs some work I think buyers will accept that faster than a higher price. Good luck.