Carpet Allowance At Closing

The seller recognizes that flooring in the home needs to be replaced.

Carpet allowance at closing.

I know if i don t sell it soon within the. An addendum for seller credits cannot mention home inspection remedy for home inspection repairs carpet allowance etc. The truth of the matter is that buyers who do want to pick out their own carpet will usually not only expect the carpet allowance at closing but they will also make a lower offer effectively having you pay for it twice they may even have you paying for it 3 times. You ll be paying twice for that carpet allowance.

Here s a common scenario. Only closing costs can be paid for by seller credits but i find many realtors do not know this or forget this and they write into the contract or an addendum that the seller agrees to pay to compensate the. A flooring allowance for instance is a factor that goes into price negotiation. Why not carpet allowance.

Many home buyer s ask for anywhere from 3 50 5 per sqft on average that is over double the price of what it. Payment at closing makes installing new carpet less stressful when you don t have to pay out of pocket right away. For example let s assume an asking price of 202k with a carpet allowance of 5k. I m a 51 year old single woman who has lived in my home for almost 12 years.

3 500 effective sales price. Buyer s typically ask for much more than 1 99 per sqft for their carpet allowance. 2 buyers will expect a much higher allowance than the actual cost of replacement with careful shopping you may be able to have the carpet installed for 3000 while a buyer will ask for 5000 in. My home has become hard for me to manage and is falling into disarray.

The lender will reduce the sales price by the allowance and calculate the ltv off of that sales price. However if the buyer s agent is searching for properties less than 200k this property will not be included in the search even though the net asking price is lower the upper parameter of the search of 200k. Homes with brand new carpet typically sell faster than homes that need new carpet. The other problem with this alternative is that most lenders will not allow the sellers to give the buyers any type of a cash allowance at closing.

The net asking price to the buyer is 197k. Giving the option of a floor allowance says that they re willing to lower the price slightly to help offset the cost for the buyer to replace the flooring.