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    The Pros & Cons of Offering a Discount on Your Home

    So you don’t have money for house updates—should you offer a discount when you sell your home?

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    Some sellers may choose to offer an allowance or discount on their home to prospective buyers as compensation. In other words, the seller would agree to take a financial hit on repairing anything the buyer sees as an issue.

    If you can’t afford to make necessary repairs to your property, offering a home improvement allowance is certainly a viable option. The amount very much depends on the type and price of the updates that need to be conducted. The first step is to get written estimates from contractors to do the work and then offer an allowance for the estimated amount.

     

    An allowance gives buyers the license to customize their home once they’ve purchased it.

     

    For example, suppose you were thinking of updating the kitchen and bathrooms, but you didn’t want to choose a color the end buyer may not want. With an allowance, the buyer can choose the final colors and finish themselves.

    However, some disadvantages come with offering an allowance. Although some buyers would enjoy the opportunity to customize a home, there are plenty who will avoid going this route. Depending on the scope of the projects, they might have to take time off work or endure the hassle of chasing down contractors for the job. Plus, depending on the market, it could be that a home improvement allowance won’t even be necessary to entice buyers. In desirable neighborhoods with limited inventory, a home would likely sell, even if it’s outdated or saddled with condition issues.

    Aside from offering a home improvement allowance, you can attract buyers simply by pricing it correctly. That includes taking into account the conditions in your market and how much work the buyer will have to put into the house.

    If you have any questions about selling your home on a budget or time constraint and would like to discuss these strategies in more detail, don’t hesitate to reach out to me. I’d love to help you.


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    Our agents write often to give you the latest insights on owning a home or property in the Essex, Morris and Union County area.