I Don’t Have Money for Updates; Should I Offer a Discount When Selling My Home?
When your home is on the market, it needs to stand out from the crowd. And certain features like beautifully appointed open kitchens or impeccable hardwood floors are great at drawing eyeballs for listings. But what if you can’t afford to renovate? Some sellers may choose to offer an allowance, or discount, on their home to entice buyers. Read on to learn more about the pros and cons of this strategy.
Benefits of offering an allowance
If you cannot afford to make necessary repairs to your property, offering a home improvement allowance is certainly a viable option. This strategy might be a good one if you’re having trouble selling your house or when a buyer brings up the need for updates. If you choose this option, get written estimates from contractors first before offering the allowance.
This strategy has two great advantages: 1) buyers can have a ‘vision’ for the home. 2) Buyers can manage the project themselves, and thus, they will have peace of mind knowing that the repairs will be done to their liking.
Disadvantages of offering an allowance
So, of course, there are valid reasons against offering a home improvement allowance. One big one is the fact that most buyers favor a move-in ready home. But, still, some buyers would enjoy the opportunity to customize the home.
Another disadvantage? Depending on the market, it’s possible that a home improvement allowance won’t even be necessary to entice buyers. In desirable neighborhoods with limited inventory, a home will likely sell, even if it’s outdated or saddled with condition issues.
Aside from offering a home improvement allowance, how do you can attract buyers? The best solution is to price it correctly. That includes taking into account the conditions in that individual market and how much work the buyer will have to put into the home.
But there’s also another option. Put some level of sweat equity into it. It costs you nothing to do a thorough cleaning and remove clutter. You can a good return on investment by painting your home’s interior with a fresh coat of white, which you can do yourself. White paint will reflect light and make the rooms appear bigger. Plus, it gives the appearance of a clean palette and can help potential buyers imagine themselves—and their stuff—in there.
Article originally appeared on Realtor.com.