My house is listed-priced well but outdated kitchen.My realtor is pushing me to put $5k into the kitchen.I want to offer $10000 credit to buyer. Which

Asked by Alice, Littleton, CO Mon Oct 11, 2010

I don't have the money to put into the house and have told my realtor that from the start. I am also worried that buyers will feel the kitchen, though more up to date, is not their style. Isn't it better to offer credit so the buyer can renovate for their own taste?

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34
Keith Sorem, Agent, Glendale, CA
Mon Oct 11, 2010
Alice
You have very good answers here.
I would ask you to do a couple of things:
See the link below. It appears that market values are holding, and that inventory is about one month.
So no need to do more than you need to to get it sold

Ask your Realtor:
How many homes, like yours, are on the market right now?
How many have sold in the past month?
How long has your property been on the market?

Get the answers to these questions, then talk about the market.
A properly priced and marketed property should have 10-12 showings or one offer in the first two weeks on the market. The longer a property sits on the market, the greater the gap from asking price to selling price.

So if you are not yet on the market, make sure that you are priced slightly below the market price (2-3%). State the sale is "as is".
If you are on the market, and not seeing showing activity by Realtors, they are telling you it is priced too high.
If you are getting showings, but no offer, the buyers are telling you that it is priced too high.

Good luck. I agree...lower the price, forget the credit.
2 votes
Pamela Meyer, , Littleton, CO
Mon Oct 11, 2010
Today's market is both a beauty contest AND a price war. If you do not have money to spruce up the kitchen - drop the price enough to make it entice someone to update the kitchen on their own. That price needs to compensate them for the trouble of doing the kitchen. I agree with Gerard - forgo the credit - just drop the price. If the kitchen costs $15k to remodel - drop the price by $25k. (just an example).

Pamela Meyer
Keller Williams Realty - Denver Tech Center
303-506-0106
2 votes
Laura Stewart, Agent, Greenwood Village, CO
Mon Oct 11, 2010
You are thinking in the right direction however I would encourage you to reflect the kitchen credit in a lower price-and have your realtor mention that in the text that the potential buyers see on line. There are three "gas pedlas" you have at your finger tips to sale a house; 1. Price 2. Marketing 3.Condition. Ultimately price trumps the other two! That being said if the price really is on traget for the market and the lack of the updated kitchen buyers should take action. The majority of the buyers in Colorado today are looking for the best value-not the best granite slab. Good luck with a successful sale soon!
2 votes
Colorado Exp…, Agent, Littleton, CO
Wed Feb 4, 2015
Credits to buyers will not really do much to sway them, as many lenders will not allow it at closing anyway. Price the home accordingly to get them in the home and stay firm.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Mon Oct 11, 2010
Instead of offering a credit, do strongly consider reducing your price--even though your kitchen may be outdated, do make sure it shows well--make sure your kitchen is functional, operational and spatially creative: functional—make sure every appliance works (no leaky faucets); operational—working counter space; space creativity involves positioning of tables, chairs, shelving and other floor accessories to invite getting-togetherness during food preparation. It doesn’t have to be modern; shiny and nostalgic may often be more appealing. It doesn’t have to be spacious—just an appearance of such--consider a fresh coat of paint, sparkling clean floors, etc.
1 vote
Julie Reddin…, , Highlands Ranch, CO
Mon Oct 11, 2010
I personally wouldn't put a new kitchen in. Everyone has different tastes and styles, and if it were me, I would prefer to choose my own. I agree with Gerard in that if the house is priced right, it should sell.
1 vote
Kyle Foster, Agent, Englewood, CO
Thu Apr 30, 2015
Alice, you have most likely SOLD your Littleton home, by now, since this question was asked in 2010.
The market has changed dramatically since 2010. Today, April 30th of 2015 we are in a Seller's Market. There is a shortage in our current inventory and buyer demand is at an all time high! In today's market, upgrades are usually unnecessary to sell. However, if you'd like to get the most $$$ for your home, some upgrades may help you. These upgrades need to purposeful and appeal to a wide range of buyers. As far as a credit goes, I would not suggest a credit for anything in this market. Just lower the price and buyers will be all over it!
Web Reference:  http://www.OurDenverHome.com
0 votes
Colorado Exp…, Agent, Littleton, CO
Thu Apr 30, 2015
Most lenders will not allow for allowances, this will limit your buyer pool. Beware.
0 votes
Mary Richards, Agent, Applewood, CO
Thu Apr 9, 2015
This tends to tell the Buyer you are willing to drop your price. The typical family tends to gather in the kitchen that is why it is critical to have at least have some updates. If it is not in your budget to have anything done at least have it sparkling clean with fresh paint.
Mary Richards
Coldwell Banker
303-356-1418
mary.richards@coloradohomes.com
0 votes
Kit Wilson, Agent, Prescott, AZ
Fri Mar 13, 2015
one of the things that I have learned is that every buyer is different. You can spend a million dollars on an incredible kitchen and have a buyer not like it and want a credit. The advice I give to my sellers is unless whatever it is is just totally disgusting, don't replace or paint anything. Who knows, the new buyer may love your outdated kitchen, the different colors on the walls, or whatever else you have going on.
0 votes
Caleb Hart, Renter, Orem, UT
Fri Mar 13, 2015
It just depends on the buyers that are going to look at your house. You can probably find a buyer that wouldn't mind doing a remodel himself. Have you see any of the kitchens in your area? That would give you an idea of what you could do. http://www.renovations.rdinet.com/your-project/
0 votes
Angela K Sams, Agent, Annapolis, MD
Sat Feb 21, 2015
It is always best to price the home at its market value in its current condition. Most buyers will search for homes within a range of prices. If your home is priced $10,000 higher than its true market value, you will be missing out on a lot of buyers who are looking in the lower price bracket.
0 votes
Danielle Nic…, Agent, St Louis, MO
Sat Feb 21, 2015
I would recommend pricing your home in accordance to it's current condition. A $10,000 credit will likely be a problem with many buyers and the financing that they will most likely have obtain (lenders don't like to see such big credits). If you put $5,000 in are you sure you are putting the money where the buyer's would (are you making the most popular selections).
If you are willing to give a $10,000 credit then drop the asking price $10,000- buyers will be more excited about a price drop than a credit listed in the MLS
0 votes
Jodi Guliuzza, Agent, McCall, ID
Wed Feb 18, 2015
In my experience with buyers, if a room is extremely outdated, they seem to have a hard time looking past it and "imagining" the potential it has. There are many people who hate the idea of a remodel because they are scared of the cost, the mess, and the time it takes. It seems that most buyers want a move-in ready house that doesn't need any updating.

In your case, it depends on how fast you want to sell your house and what kind of feedback you getting from the buyers who have looked at it. If you do choose to remodel, you will have to take it off the market for the time it takes to complete the work. If you can't afford to remodel the entire kitchen, then it may not be worth it. So there are definitely pros and cons to each option.
0 votes
Jan Baer, Agent, Littleton, CO
Sun Feb 8, 2015
Price it accordingly for the current condition and allow the buyer to choose their own Kitchen updates in the future. Good Luck!
0 votes
Jan Baer, Agent, Littleton, CO
Sun Jan 25, 2015
You have most likely SOLD your Littleton home, by now, since this question was asked in 2010.
Today, 2015 we are in a Seller's Market, you can sell your home and let the buyer update the kitchen to their liking. There is a lack of Inventory, and demand is high. Please let me know if you still need help with your Littleton Real Estate needs. Cheers, Jan Baer Broker Owner/Realtor BAER Realty LLC 303-931-5853
0 votes
Jennifer Sch…, Agent, Centennial, CO
Sun Nov 2, 2014
You've hit on one of my favorite tasks to resolve for my sellers! How to tackle an outdated kitchen or bathroom on a non-existant budget. Yes, you can expect a higher selling price if the kitchen is updated, I know the Littleton market well as a native and current resident, but what if the money just isn't available? There are so many things you can do to make it feel refreshed and inviting without a total remodel. Sometimes simply wiping down light to medium stained cabinets with scratch-coat for dark woods gives the cabients that much needed luster. Other times, the cabinets are too dark or too dated, but they can be painted or glazed for a more contemporary look. In a recent listing we glazed the original 1979 dark cabinets with a more urban semi-transparent "portobello mushroom" color to give the entire kitchen a new up-to-date feel. The home sold for top dollar in one day. We also addressed a 1950's bathroom with pink tub & sinks with simple staging to make it feel beautiful as is. I invite you to look at some of these photos on my website http://www.HomeRealEstateColo.com. I can also email some before and after photos to give you more ideas.
0 votes
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Nicholas Bow…, Agent, Denver, CO
Fri Mar 11, 2011
Alice,
Great question, Rameh hit the nail on the head when he said, "I have not had a single buyer yet get excited over an allowance. I would make minimal repairs or updates, super clean and declutter and go from there. Price reduction over an allowance any day and it nets you the same." More than an answer at this point, I am just curious if you ever sold your house? - Nick
0 votes
Gita Bantwal, Agent, Jamison, PA
Tue Feb 8, 2011
The buyer may not offer full price so the $1000 will not make a difference.
Web Reference:  http://www.gitaabantwal.com
0 votes
Rameh Khazen, Agent, Mobile, AL
Sun Feb 6, 2011
I have not had a single buyer yet get excited over an allowance. I would make minimal repairs or updates, super clean and declutter and go from there. Price reduction over an allowance any day and it nets you the same.
0 votes
Connie De Gr…, Agent, Los Angeles, CA
Fri Feb 4, 2011
Since I do not know your neighborhood and the homes there this question is tricky. Most of the time this investment will pay off IF THE IMPROVEMENTS are done well. Nevertheless, this may not be necessary in your case. What I do with my clients and most of them have homes over 1 million and do not like to spend even 100 dollars, is to first make the inexpensive fixes such as declutter, rearrange the furnishings, paint the front door if necessary, paint rooms or trim on the house. The home will be much improved for under 1000 dollars. If you have a friend that is good with design get her involved. Lastly, look at the other homes in your area and see if most of them have up-to-date kitchens and how your house ranks against them. If most of them, in your price range, have this and your home doesn't have a significant advantage in say having a larger yard, nice master bdrm, etc, then yes you should make that investment or the costs to you in that final sales price will be much more than 5000 dollars or worse, you may not sell at all.
Good luck.
Connie
0 votes
Julie Montgo…, , 80238
Fri Jan 28, 2011
My advice is "listen to your realtor." She is 100% correct. No. 1, if you put it $5,000, you'll get at least $10,000 in return. Offering buyers an "allowance" never works, because generally, people are not visual. In addition, they don't want to inherit "projects," especially something as extensive as a kitchen. I've just created a company in Littleton, CO, called "Affordable Home Staging and Remodeling." The premise is to show people "HOW" to affordably update their home to ensure maximum return on investment. If you really can't put money into your kitchen, the only other option is to lower your price ... Julie Montgomery, RE/MAX Masters, Inc., 303-906-3150
0 votes
Brooke Hengst, Agent, Littleton, CO
Thu Oct 21, 2010
Hi Alice,

It looks like you've got a lot of great answers below. In consideration of YOUR financial situation, I would say to price the home appropriately that reflects some kitchen updates that are needed. I think this is perfectly fine and actually just put a home out in Lakewood under contract that was quite outdated as well.

We priced it appropriately and listed with statements like "Give this your OWN finishing touches", "priced to sell", and "a little outdated but priced accordingly".

In this market is all about price and if you can be aggressive with yours, you'll get the response that you are looking for.

I hope this helps and best of luck with the sale of your home.

Thanks,
Brooke Hengst
Your Castle Real Estate
Web Reference:  http://www.brookehengst.com
0 votes
Alicia Chmie…, Agent, Frisco, TX
Mon Oct 11, 2010
As previously stated, it is hard to make a definite decision without seeing it for ourselves; however, if you don't have the funds, it is usually wise not to spend. I've seen people put in new (whatevers) and hope to get a higher offer. It sometimes happens, sometimes not.

It would be good to see what can be done minimally to make the kitchen show better. Can tile grout be cleaned? Cabinets polished or painted? Think creativelly and work within YOUR budget not that of a "possible future buyer's" expectations.
0 votes
Edith Karoli…, Agent, Winnetka, IL
Mon Oct 11, 2010
There is a perfect answer and Realtor decision to your question and then there is your financial situation.
I understand that it is much easier for you, once you sell your home and have a net to seller at the closing table to pay from that a credit to the buyer to have the kitchen remodeled.

In order to give you the best advice one would need to see your kitchen, how much work needs to be done really, improving just a little is not making the big impact, but if you are competing with homes around the same asking price as yours, with a remodeled kitchen, updated baths, refinished hardwood flooring, new windows etc. (just an example, then they will leave your home behind and move on to the updated ones)

For that your agent can help by showing you some of the homes, that are priced just like yours so you can see for yourself.

If and when you should decide to offer a remodeling credit to the buyer, make sure you put that sign on the
kitchen counter or table, have some estimates available and have your Realtor bring you some ideas of what
the new owners could do to the kitchen once they own the property.... That might entice them to accept the
remodel credit.

Hope this helps and good luck!

Edith YourChicagoConnection and Realtor4life!
0 votes
Kimberly Ryan, Agent, Highlands Ranch, CO
Mon Oct 11, 2010
Alice-
I would consider your Realtors advice to be correct. Our goal is to create a positve emotional reaction in the Buyer. Seeing a kitchen that needs works just to "get by" is more than most buyers are willing to take on. With many homes on the market, the Buyer will just move on to the "next" one.
Best wishes
Kimberly Ryan
http://www.SwanRealtorGroup.com
303-523-8333
0 votes
John Danyliw, Agent, Littleton, CO
Mon Oct 11, 2010
If affordable drop price but it may have to be substantial and remember that even at a low price you'll probably still receave an offer for less. All depends on your equity position. Another choice, if feasable woud be to borrow the funds to redo and $5K doesn't sound like enough. You have to compete with newer homes out there-granite, nice cabs, appliances,etc. Credits don't seem to work.
0 votes
Esther Harns…, Agent, Littleton, CO
Mon Oct 11, 2010
I concur with others. Drop the price to reflect the cost to renovate the kitchen. A buyer has a different taste than you do, so let them create the kitchen of their dreams. Great question and good luck in getting your home sold!
0 votes
MODUS Real E…, Agent, Denver, CO
Mon Oct 11, 2010
Leah is correct about the credit being an issue when a buyer is financing your home. I don't think any banks will allow that these days-looks like cash back incentive. If you are willing to give up that dollar amount of concessions maybe advertise an interest abatement.
0 votes
Mary Weaver…, , Glenwood Springs, CO
Mon Oct 11, 2010
I think perhaps your Broker should create an advertising quote or catchy ad phrase to attract buyers to "A blank canvas waiting for your touches" and many buyers who like to do their own remodeling will be drawn to this type of an ad. Then be willing to lower your price to the suggested amount your broker recommends. I would think the broker's price would have already taken into account that the kitchen needs remodeling. If you can buy a bucket of paint and paint the walls an attractive color and maybe spruce up the cabinets and do cosmetic improvements as cheaply but as professionally as you can, this might help without a total remodel. If you have photos of your listing, please send them to me or a copy of your MLS and I'd love to see what you have for further suggestions. mweaver_52@yahoo.com.
0 votes
Lillian Live…, Agent, Lakewood, CO
Mon Oct 11, 2010
Right now it is a buyer's market. Listings are in a combination price war & beauty contest. If you cannot afford to update the kitchen then it is time to lower the price, rather than offer a $10K credit.
0 votes
Leslie Monaco, Agent, Greenwood Village, CO
Mon Oct 11, 2010
Alice,

I would try and talk to your agent again and reiterate this. Your agent should be working on your behalf. In general offering any type of credit to a Buyer says to them I am willing to reduce the price by $X amount. FYI, some loans only allow a certain percentage for closing costs so the $10,000 may be too much (ie 3%).

Good luck!

Leslie
0 votes
Leah Thomas, , Denver, CO
Mon Oct 11, 2010
Offering a "credit" to the buyer will not work if the buyer is getting a loan on the property. It has the appearance of the buyer getting money back at closing and looks like loan fraud. Lenders will not permit it anymore.

Price the home to beat the competition! Go look at the homes that are comparable to yours that are on the market right now. Then beat their price and condition the best that you can.

Good luck!
0 votes
Gerard Dunn, Agent, Chevy Chase, MD
Mon Oct 11, 2010
If it is TRULY priced well - it will sell.

You should not have to update the kitchen -OR offer a credit.

Why not reduce the price further and forgo the credit?

Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
703-216-9100
0 votes
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