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Should A Seller Replace Old Carpet Or Offer An Allowance?

Should I Replace the Carpets when I’m ready to sell my home? This is a question that real estate agents hear time and time again. So lets look more closely at this topic. Most real estate agents will say “Yes, absolutely replace the carpet”. But why?

1. The Home Will Show Better

The most obvious answer is that it will make your home show better, and thus impress potential buyers more and hopefully result in a quicker sale of your home. For a buyer, walking into a home with a dirty and disgusting carpet is a real turn off. Even if the house is otherwise in great condition, the buyer’s first impression was the ugly carpet, and this will stick with them throughout the tour of the home.  (Note that if the carpet is in good condition, a professional cleaning should suffice).

2. Seller Saves Money Overall

A common seller concern is that buyers may not like the new carpet and would rather pick their own style and color. The answer to this is to pick a neutral beige color with a style common to the area and neighborhood. As a seller, you should understand that a buyer is going to ask for a credit, or allowance, for replacement of old worn out carpet. The buyer will also generally make a lower offer if there is old or damaged carpet. The buyer feels he or she should be compensated for the hassle of having to replace the carpet after closing, thus delaying moving in for a week or more. In most cases, the seller will save money by replacing the carpet.

As an example, a seller of a $200,000 home decides to replace the carpet and the replacement cost is $3000. The buyer makes an offer of $190,000 and the deal closes at $195,000.

In another scenario, the seller decides not to replace the carpet of a $200,000 home. They buyer wants a credit to replace the carpet. But also, the buyer feels the home is not worth as much due to the first impression of the ugly carpet. The buyer also feels the inconvenience of having to replace the carpet is worth a sizeable discount.  The buyer then offers $185,000 and asks for a $6000 carpet allowance. Assuming they meet half way on price, the deal closes at $192,500 and the buyer ends up negotiating a $5000 carpet allowance. In this scenario, failing to replace the carpet cost the seller $7500. In the previous example, replacing the carpet only cost the seller $3000.

In the sale of a home, every situation, and every buyer or seller is going to be different. The above recommendations and scenarios are based on what one would generally expect to experience in a real estate transaction where carpet is an issue.

Related Articles On Pensacola Real Estate News:

Home Improvements: Which Ones Really Pay Off

How You Can Save Big Money On Home Improvements

  1. Cal

    Never give a carpet allowance….reduce the sale price.

    $200,000 less carpet allowance, realtor gets commission on $200,000=12000
    Actual cost of carpet allowance is $5,300 depenting upon percentage.

    $200,000 reduced to $195,000 to compensate for carpet, realtor gets commission on $195,000=11,700

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