Should I Offer an Allowance or Update Part of My Home?

If you are considering selling your Markham property, you may look around your home and notice the upgrades and repairs that should be accomplished. While you can always complete these projects on your own to increase your home’s value and to make your property more appealing, you may also consider offering an allowance to buyers. 

What is an Allowance? 

An allowance is when you give the buyer a credit to complete certain repairs around the home. Often, you will see an allowance given for projects such as installing new flooring, painting the entire home, landscaping projects, etc. Typically, this allowance is mentioned directly in the listing but sellers can always ask for it in the offer as well. 

The allowance can also be given multiple ways such as a cash credit or even as a discount on the purchase price or closing costs. 

Should I Offer an Allowance or Update Part of My Home?

Whether you choose to offer an allowance or make the updates on your own, it will depend on your current situation. For example, if you are in a time crunch and you need to sell your home quickly, an allowance may be ideal. You likely do not have the time to make the necessary repairs before placing your home on the market. 

However, if time and money are not an issue, it is best to complete the repairs yourself. This will make your home more appealing to potential buyers and you increase the likelihood of receiving a good offer on the property. 

You must be careful when offering an allowance, particularly if an allowance is mentioned in your listing. An allowance can cause buyers to believe something is wrong with the home. It can make the home less appealing to potential buyers who are looking for a move-in ready house.

It may also be a sign that you are in a rush and want to sell the home quickly, giving buyers the impression that you are more likely to accept a low offer.

If making decisions such as whether or not to include an allowance is a little overwhelming, do not fret. Markham real estate agent Martin MacFarlane can help you every step of the way. Contact him today for more information on selling your Markham home or to begin the buying or selling process.