Home : Blogs : Mike Jaquish Keller Williams Realty, Cary, NC : Mike's Raleigh, Cary, Apex, Wake County, NC Real Estate Blog

Seller Asks, "Should we replace the carpet or offer a "Carpet Allowance?"

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.

Posted by Mike Jaquish Keller Williams Realty, Cary, NC on 02/16/2007 10:17 PM

Comments (8)

home, negotiating, buyers, market, agent, mortgage, property, closing

This post has been included in North Carolina Information Wake County, NC Information

8 Comments on Seller Asks, "Should we replace the carpet or offer a "Carpet Allowance?"

I agree with you. sometimes it is not possible to have the carpet changed so the allowance is the next best thing.

This carries through with everything else that also need to be fixed.

As they say, a $200 dollar fix is a $2000 problem for most buyers.

Mario

02/17/2007 02:18 AM

by Mario Levesque, Tampa Realtor (Advantage Avenue Real Estate)

Good psychology! That was exressed very neatly, and is so true, although I have to use a lot more words!

02/17/2007 02:31 AM

by Deborah Burns ~ Seattle Real Estate Agent (BRIO Realty)

Boy, buyers do inflate (often in their mind) the cost of repairs. It saves a lot of hastle to get things fixed before they turn a mole hill into a mountain.

02/17/2007 05:34 AM

by Chris Elizabeth Griffith ~ Bonita Springs Fl Real Estate (Keller Williams Elite Realty, Bonita Springs, FL)

So true-'new carpet' is truly one of the magic phrases when buyers are selecting homes to view. And being one of the few things you can do that gets you a bigger return than its cost? a no-brainer. To any sellers reading this post-please go new carpet!

02/17/2007 07:10 AM

by Leigh Brown Charlotte NC Broker/Owner (RE/MAX Signature Properties)

Chris: I think they do, and often, rightfully so. A buyer should expect to be compensated when they have to lose time and do repairs. How much? Well, it IS all negotiable, isn't it?

Leigh: Right! We closed last week, and through MANY showings, with critical feedback, never a word was said about the carpet. It was OFF the table.

02/19/2007 06:02 PM

by Mike Jaquish Keller Williams Realty, Cary, NC (Keller Williams Realty)

Hi Mike,

You hit it head on. It is so true, you get so much for the return on investment, whether it is replacing carpet.painting the walls, replacing broken whatever "IT" may be.

No surprise, I would be saying that, since I am an Accredited Home Staging Professional. I think whether it is staging, or taking the investment in time and money to make it look it's best, you will sell your home quicker and for more money. A staged home sells for 17% more money according to the US Dept of Housing and Urban Development. You only have one chance to make an impression.

02/28/2007 07:04 PM

by Marcyne Touchton (Domaine Staging)

According to everything I learned about staging a home, fix it and don't offer an allowance. If the seller doesn't want to fix, neither does the buyer. Most people in their every day hectic lives want to move into a house that is ready to go. Offering an allowance doesn't make that happen! My feeling is that the carpet should be replaced before the house ever goes on the market. It is home staging at its best!

03/01/2007 05:09 PM

by Teri B. Clark (http://www.teribclark.com)

Marcyne and Teri,

The complete lack of discussion of the carpet through a long marketing process was validation.

Great to her from the staging folks!

03/01/2007 09:32 PM

by Mike Jaquish Keller Williams Realty, Cary, NC (Keller Williams Realty)