A question I hear from a lot of home sellers is: Should I replace the carpet or offer a carpet allowance? We hear the word Carpet Allowance come up a lot but what does it mean? And is offering a carpet allowance a good idea for home sellers?
Well, a carpet allowance is basically the seller saying that they know the carpet needs replaced but they didn’t want to do it so they are offering you some money to fix the problem. Basically, giving an allowance is just throwing money at what you know is a problem. It also calls out that you know there is a problem.
In my experience, buyers are likely to not fall in love with a house that needs work. They want to buy a house that they can envision themseleves moving right into. Even with the allowance on the table, they often move on to other homes or try to put in a low ball to try and get a deal. That aren’t giving the seller full credit for what is being offered.
Another problem with offering a carpet allowance is that you would probably put in a cheaper carpet than what the buyer is expecting. Therefore, your offer of a few thousand dollars may not cut it for them, especially with the hassle of scheduling the contractors to come into their new home. If you just pick out and install new carpet now, you can market the home as having “New Carpet”. That new carpet wow factor will get you more money for your house and eliminate the hassle for the new home owners.
Obviously every situation is different. If you are thinking of selling your Northern Colorado home, give me a call or text and we can discuss exactly what is going on in your situation and come up with the best strategy. Reach me at 970-203-5066 or contact me through the contact page.
What are the best upgrades to do to your home to improve property value?