When going on a listing appointment, I often will make suggestions to sellers about upgrades or improvements that they should make in order to get their home sold faster and for more money. While fresh paint is at the top of the list often times, carpet is usually close to the top of necessary improvements. Lots of times the carpets are soiled beyond repair or have cigarette smoke or animal smells in them. If the carpet is not in good condition, it can have a real negative impact on the buyer.
Lots of times sellers are more willing to give an allowance rather that to simply replace the carpet. They rationalize that the new buyer may not like their color choice or that they may want to lay wood or tile in place of carpet. I can understand that thinking. But in my experience, buying a home is an emotional decision. If the buyer is met with hunter green carpet or pink carpet or stained carpet, their entire first impression is different from if they are met with new neutral colored carpet.
Sometimes price is a concern for the seller. There is enough money in the equity of the home to pay for the carpet but they do not have the available funds to purchase the carpet now. Working with a local carpet company (I know one) may allow you to do some in-house financing where the carpet company allows you to pay for the carpet out the proceeds of the sale of the house. The company I use does not charge interest if the house closes in a reasonable amount of time.
I always suggest that people replace the carpet rather than give an allowance because it tends to lead to a higher sales price and the house sold in a faster period of time. I once had a listing that had pink carpet. The seller was offering a $3000 carpet allowance, after 3 months on the market and no offers, I convinced the seller to replace the carpets. We had two offers within one week of changing the carpet. To me this illustrates the importance of the first impression and the power of the emotion that seeing the new carpet installed (which actually cost less than the amount that the seller was offering in an allowance) than the promise of new carpet in an allowance.
If you are considering buying or selling a home please feel free to call me at 405-213-2992 or visit my website at http://www.sandiwalker.com
Carpet allowances simply do not work for home sellers, buyers look at how much carpet needs to be replaced and subtract more than double for what it normally costs to replace.
Thank you for confirming my thoughts.