Here’s the Scoop on “Decorating Allowances”
Putting a home on the market can be a very overwhelming process. There are so many moving parts and things to consider that sometimes when a seemingly convenient shortcut presents itself, you leap at the opportunity.
One of these “shortcuts” for sellers and Realtors is a decorating allowance. A decorating allowance is a sum of money a seller is willing to contribute to the transaction in order to help pay for remodeling or renovation to the home after purchase.
Many homeowners commonly consider decorating allowances for painting or flooring in areas of the home they believe to be in need of updating. The perception of decorating allowances is that it creates an incentive for a buyer to make an offer on the house.
But is it really an incentive – or is it a deterrent?
According to some of the area’s top Realtors, a decorating allowance does more harm than good for folks trying to sell their home. Here are a few reasons why an allowance isn’t all it’s cracked up to be.
Decorating allowances may disqualify your property as a ‘must-see’ property
When a prospective buyer scans a list of houses on the market, seeing a decorating allowance could be a red flag and raise questions in their mind. Is there something wrong with the house? Is it full of ugly retro carpet? Does the laminate or hardwood flooring need work? How much work will I have to do?
These notions may be completely unwarranted, but just the suggestion of taking on work may be enough to dissuade a prospective buyer from placing your home on their list of properties to visit.
Some buyers have unrealistic expectations
A buyer’s expectation of what a fair price is for a given refurbishment project may be a little off-base. Buyers are going to be looking to get the best deal, the most bang for their buck. When they walk through a home after hearing what your proposed allowance is, they very well could be upset or turned off if they perceive an allowance to be too low.
The seller will get estimates or do research in order to arrive at an allowance figure, but invariably the buyer will assume any renovations or installation will cost more. This can be a problem.
Doing the work is not appealing
If there is one thing that is certain about home shoppers in 2017 it is that they do not want to do any more work than they must. Statistics clearly indicate that buyers want a home that is move-in ready.
Even if the rest of the house is acceptable and the allowance is reasonable, a buyer may choose to look elsewhere to a home that won’t need as much effort to become move-in ready. In this case, “turn-key is key”.
So, what’s the solution?
Smart home sellers often opt for having the cosmetics such as paint, flooring or appliances updated or replaced prior to listing their home. Realtors across the board agree that the research is accurate: the more move-in ready your property is the higher the selling price and the fewer days it will be on the market.
Tish Flooring understands the struggles of listing a home. That is why we offer high-quality flooring economical, seller-friendly prices. See what’s hot at Tish Flooring today or give us a call at 317-879-TISH (8474) today.
