Home Selling in 62025>Question Details

Owner, Home Seller in Edwardsville, IL

Would a price reduction or a decorating allowance be more attractive to a buyer?

Asked by Owner, Edwardsville, IL Tue Oct 11, 2011

The home is 12 years old with original carpet which is in good condition and has laminate counter tops. It has been newly repainted throughout, has a new roof and new windows throughout. It is located in the Lincoln Knolls addition.

Help the community by answering this question:

Answers

19
The price reduction should give you more bang for your buck as it will likely open up doors to potential prospects that had search parameters just under your current list price.
1 vote Thank Flag Link Tue Oct 11, 2011
This is a fantastic question and one that many ask when considering buying a home with needed repair.
Lenders these days are not allowing any types of allowances, so the quick Answer to your question is a PRICE REDUCTION. Another great option would be CLOSING COSTS. This allows a buyer to put less money down as their down payment, leaving money in their pocket for improvements.
0 votes Thank Flag Link Wed Mar 19, 2014
Price is generally the most important thing for most buyers. Allowances are a thing of the past. Most loans will not allow the buyer to receive any kind of allowance other than for closing costs. Depending on the type and color of your counter tops you might need to consider replacing them. Lincoln Nolls is a great neighborhood, but at that price point your house needs to show well.
0 votes Thank Flag Link Sun Mar 16, 2014
I completely agree - decorating allowances get lost in a description and are overlooked. Buyers shop by price. Put your allowance into the price - will serve you much better!

Good luck and best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Fri Aug 9, 2013
Most clients I deal with would prefer a price reduction, however, if the property is competitively priced, the decorating allowance would appeal to buyers who can handle the mortgage, but lack the funds to make the home their own.
0 votes Thank Flag Link Thu Aug 8, 2013
Lower price>>>more traffic = better chance for an acceptable offer...

With enthusiasm,

Meir Aloni & Team
CRS (Certified Residential Specialist)
CDPE (Certified Distressed Property Expert)
RECS (Real Estate Cyberspace Society)
Successfully selling Broward County since 1986!
Direct phone# 954-338-5220 http://www.WeSellBroward.com
All Star Realty Inc.
0 votes Thank Flag Link Thu Jan 10, 2013
Price reduction. Let the buyer decide how to spend the money
0 votes Thank Flag Link Thu Jan 10, 2013
A very good question. :) I have the pleasure or working with as many buyers as with sellers. As a result I am pretty good at seeing homes through "buyers' eyes..." I am familiar with your subdivision and know how it compares with the area. Given your price range most of the competition will granite counter tops... I applaud you for the fresh paint, new windows and even new roof (although many area homes have new roofs - compliments of storms and insurance coverage). Carpet in good condition is still dated and unfortunately with so much market competition buyers are likely to pass over your house for one they consider more "move in ready". If you'd really like to sell within the next 3-6 months - I recommend investing just a little more money for new flooring and countertops. By the way, updated lighting would complete the package! That shiny brass gold (possibly installed 12 years ago when your house was built) is also dated and leaves a "cheap" impression. You live in a wonderful area - make the most of it! Buyers are willing to pay to live there! You will net more money having made the improvements prior to contract negotiations. Good luck to you! Kathy Shemwell
0 votes Thank Flag Link Fri Apr 20, 2012
Go with the price reduction. The decorating allowance will be buried in the text and likely overlooked by a buyer. Take it right to the bottom line so you attract the buyer. If you have not gotten traction and more directly an offer, you need to address price.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Wed Oct 12, 2011
Hi Owner

Buyers will most likely appreciate whatever win win comes their way. If you are considering offering decorative allowance part of the repairs request "credit", it's common practice to recommend both buyers and sellers to agree to keep the "credit" lower than the closing costs. If this precaution is not taken, it can be flagged and delay the process.

This is to my best knowledge and only an advice. Please discuss this with your agent for information tailored to your specific scenario.

Good luck

Mimi Davies
0 votes Thank Flag Link Wed Oct 12, 2011
A decorating allowance must be disclosed to the buyer’s lender if they are borrowing part of the purchase price. I frequently see contracts written stating the seller will write a check to the buyer at closing for a decorating allowance. When written like this the lender must lower the loan amount because the seller is giving the buyer money at closing. So it doesn’t help the buyer.
0 votes Thank Flag Link Wed Oct 12, 2011
I highly recommend home staging to the best possible point of showing and being up to or above "comparable" to the comps. Most people right now don't want a house that they have to come in a remodel just to be able to move in. If the price is right but doesn't show as well as the other homes that the buyers are seeing, they would pay a little more for a place they don't have to remodel. Very simple.

Jolene Hardy
Fort Myers, FL
0 votes Thank Flag Link Wed Oct 12, 2011
Hi, Yes it would be or you could just factor the upgrades into the inital asking price, the option is yours.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Wed Oct 12, 2011
How long have you been on the market?

Have you been getting negative feedback about the carpet? If so, replace it now. Buyers want move in ready and CAN look somewhere else with all the inventory.

If you haven't offered closing cost assistance to a buyer, try that first.

When you reduce it gives the impression of being a little desperate. Most buyers will come in with an even lower offer (when they see that you've reduced, assuming you're willing to take anything if you keep reducing) or they'll wait to see if you reduce again.

That's just been my experience.

Good luck.
0 votes Thank Flag Link Wed Oct 12, 2011
A price reduction is probably your best option.
0 votes Thank Flag Link Tue Oct 11, 2011
Hi Owner,

I would recommend the price reduction which is the biggest factor when selling a home. Since the home seems to be in good condition and the carpet is the only thing that seems to be older, I would recommend you just change the carpet and account for the cost of replacing the carpet when making the price reduction.

If you have set a good price and the home is in good condition then the rest will take care of itself.

Hope this helps

Michael
0 votes Thank Flag Link Tue Oct 11, 2011
What is your agent advising; start by reviewing comps with your agent, recently sold similar properties in the immediate area; if pricing needs to be adjusted in order to be as competitive as possible, adjust accordingly. In addition and if applicable, consider simple cosmetics, make sure the house is neat, clean, clutter free, remove/rearrange any bulky furniture, remove dated carpeting even if believed it's in good condition, don't forget the exterior for curb appeal, etc.; also make sure the marketing maximizes your exposure.
0 votes Thank Flag Link Tue Oct 11, 2011
Price reduction.

But you may get the most bang for your buck by doing the redecorating yourself.

A lot of buyers will be turned off by 12-year-old carpet (even in good condition). Put in new carpet. Then you don't have to worry about choosing between a price reduction or decorating allowance.

Consult with your Realtor for more details.
0 votes Thank Flag Link Tue Oct 11, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
you might want to try a BTSA.
0 votes Thank Flag Link Tue Oct 11, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer