Pay closing/decorating allowance. Work?

raya7694April 12, 2010

We were going to drop the price 10,000 and that is as low as we want to go. Do you think it would be a better idea to drop it 5000 and offer closing or a decorating allowance. The drop won't make that much of a difference in payment.

Thank you for reporting this comment. Undo

It's much better to drop the price.

    Bookmark   April 12, 2010 at 1:08PM
Thank you for reporting this comment. Undo

Dropping the price by the $10K seems more straightforward and less gimmicky than dropping it by $5K with a $5K allowance.

    Bookmark   April 12, 2010 at 10:05PM
Thank you for reporting this comment. Undo

If you need the price drop, then just do it. I've been told that if you offer an allowance, people will try to low ball and get the allowance on top of that.

    Bookmark   April 12, 2010 at 10:19PM
Thank you for reporting this comment. Undo

I also think a price drop has a better chance of bringing more potential buyers to look. That's the first and necessary step. I am chuckling, because no matter how you do the deduction, buyers often try to squeeze the turnip a little dryer with asking for the commission to be paid and also $$ for decorating. Most feel it doesn't hurt to ask.

You can always give them the other options after they decide they can't live without your house.

    Bookmark   April 12, 2010 at 11:27PM
Thank you for reporting this comment. Undo

In my small city in the Southeast, asking price doesn't really matter. People are low balling AND asking for cosmetic allowances, closing costs, etc. If your new price gets you to a different search parameter, ie 209K to 199K, it may help. But, prepare yourself to get offers lower than your lowered price.

    Bookmark   April 14, 2010 at 8:19AM
Thank you for reporting this comment. Undo

I agree with what deee said. IIRC, isn't your house the one that is competing with new construction? If it is, IMHO you need to drop it at least 10k, and you may sell for 15k less. If I was in your market, your home would have to be an outstanding deal for me to pass on the new construction. Since everything in the other houses are new (such as appliances, windows, hvac etc) that is an expense in your house that should come do sooner than in the new ones. As such, your pricing has to reflect that. Sorry to be so blunt, but I think the most important thing for you is to sell your house. Pricing it well will do that.

    Bookmark   April 14, 2010 at 9:02AM
Thank you for reporting this comment. Undo

How would a decorating allowance work? How would it benefit you, or the buyer, more than just dropping the price by that much?

    Bookmark   April 14, 2010 at 10:37PM
Sign Up to comment
More Discussions
Getting house ready to sell and have door knob question.
My house is going on 11 yrs old. Everything is pretty...
Home closing delayed or is it a wash-out?
Hello everyone, I am a new poster, but have enjoyed...
Realtor company fee
Buyer agent told me there is $300 fee to realtor company....
Seller isn't signing the sale contract
Land has been on the market for 1.5 yrs and asking...
Why would nosey realtor say these things?
It is clear my house lacks a wow factor. I over de-cluttered...
© 2015 Houzz Inc. Houzz® The new way to design your home™