Big Incentive or Lower Price?

by Susan Gruenling on May 13, 2008

Which would you choose? Realtor.org posted an article about Buyer incentives. Potential problems are many. Using their example, if Sellers offer a $40,000 car with the house as an incentive, the house is still going to need to meet appraisal. Another example they use is offering a decorating allowance if there is a purple bedroom. You see this all the time for carpet allowances. Why not just paint the purple bedroom a more neutral color? And instead of offering a $10,000 carpet allowance, I think there would be a much more positive impact if you spent the $10K on a new carpet now so the Buyers could view the home with a nice clean carpet instead of literally looking down on an old dirty and dingy one. It really makes a big difference when the home is in its best possible condition. Granted, the Sellers may pay to install nice new carpet and the Buyers may come in and rip it out nice new carpet because they want bamboo or stained concrete floors. But if those Buyers saw the dirty old carpet they may think that the Sellers have not properly maintained or cared for other areas of the house and therefore come in with a much lower offer. First impressions are important; make them great.

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