Should A Seller Offer An Allowance For Flaws When Listing their Home?

As we approach the fall season and homes that have not sold have sellers asking the question what to do. One thing I have noticed lately is more Realtors are making a statement about offering an incentive to buy the house. If the home is in need of new paint because the colors are turning off buyers they are offering an allowance for new paint. If the carpet is old and worn then they are offering an allowance for new carpet.....But is this a good way to advertise your home for sale? There are a couple train of thoughts on this. One is this way the buyer can choose to do what they want with the allowance. In North Carolina it is a little trickier than just giving them an allowance or a rebate. You cannot show it on the contract and most lenders I have dealt with will not allow it because of the appraisal issue that can come up from it. But I understand the premise. Why have a seller paint the house with a neutral color and then the buyer come in and repaint it. Just give them an allowance to allow them to have it painted anyway they want. The same goes for the carpeting as well. But what are you telling people about your house and the upkeep of it? If you are giving them an allowance for something for the home; then you know there is an issue with it. If you have not corrected that issue what other potential issues are there floating around the house that you are not telling? There may not be any; but what is a buyer to think when they read this? My first inclination is that you did not maintain the home and are throwing money to entice me to buy anyway. The other inclination I have is that you may have the house overpriced or be more willing to come down substantially on the house because you are offering an allowance for something. Meaning you are coming across as desperate to sell your home. Either way I have never heard of a situation where there is an allowance offered for carpet, paint, appliances, etc..... where the outcome was not the buyer feeling that the seller was not maintaining the house or that they were desperate to sell the house. With that why then do you insist on offering an allowance for something on the listing sites? 95% of all buyers being their search online (and I think that is a conservative estimate). Why would you want them to read that first before even looking at the house? What not in negotiations after they have looked at the house and made an offer negotiate with the price the fact that you are aware that the house needs X? I have noticed this coming up more and more often lately with homes buyers are looking at and without saying anything I get those same answers. It has kept some buyers form even looking at your home...And who knows; they may have been the right buyer for your house... Dave diCecco Realtor/Broker Coldwell Banker United Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com