Fix that home for sale up or give an allowance

By
Real Estate Agent with Keller Williams Realty 0575737

PainterA question asked quite a bit by home sellers is what improvements do I need to make my home ready for sale? Do I really need to change the carpet or will shampooing it do just as well? What about remodeling the kitchen and baths? That roof is about 15 years old now and looking a little worn, couldn't I just give an allowance? Besides if I give an allowance, say for carpet, then the new buyer will get to pick out the colors they like.

There are two answers to what homeowners should do about deferred maintenance on their house prior to selling. And each answer comes down to how much money do you want to net? Fresh carpet and paint for the cost of the materials and labor will always net you more than if you give an allowance. To NOT do the maintenance and give an allowance will give you less net on the house, but it does provide you the CONVENIENCE to get the heck away from that dog.

So with homeowners it is all about what is most important to them. Deferred maintenance comes back to bite you with energy, time and money. So it's really a case of pay me now or pay me later.

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Anonymous #15
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Gary-This is a very timely post for me personally.  Thank you!  We just listed our own home and I'll tell you, I find myself nit picking everything in my path and wondering if there is more we should be doing or if we should just let the buyers negotiate.  I'm finding that being a seller isn't all that simple. 
November 25, 2007 10:04 AM
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Patricia Kennedy
For Your Home in the Capital
Evers & Company Real Estate, Inc.
Gary, I'm on my way to a listing appointment for a house that is going to involve some of these issues.  In most cases, the prospective buyer will want to subtract far more than the cost of doing the repairs.  Great post. 
November 25, 2007 10:39 AM
Rainer
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Tyghre Collentine
Coldwell Banker Burnet
Great post...there's nothing unclear about it.  Sellers have to be willing to pay for the maintenance before the sale, or be willing to leave money on the table when it comes to closing.  
November 25, 2007 04:09 PM
Rainer
78,917
Linda Sticklin
Home Staging & Organizing
I say fix it up front. The majority of buyers are not interested in taking on a seller's neglected repair or replacement projects even if they are offered an "allowance." With a lot of inventory to choose from, the buyer is going to choose the house that looks the best and is priced right.  
November 26, 2007 08:01 AM
Rainer
6,089
Jason Botelho
Keller Williams Utah Realtors
Good post Gary.  The problem these days, is that sellers do not have the cash to do it right! 
November 26, 2007 03:21 PM
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Gary Woltal

Assoc. Broker Realtor SFR Dallas Ft. Worth
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