Most people have wandered through new home developments and wished their own home
looked as modern and chic. Model homes showcase the latest upgrades and decorating
trends; for home sellers these homes are their competition, and it can feel daunting to offer
an older floorplan and design.
While it might seem like a smart idea to simply offer a buyer credit and list, there are
downsides to this plan, and taking the time to update a bit on your own first could mean
thousands of dollars in your pocket.
Here are a few reasons why offering a credit might not be the best strategy:
• Buyer Impression – A dated home looks old and not all buyers can see the potential.
• Lower Offers – Offering a credit could be viewed as high seller motivation, resulting in
lower offers.
• Value Differences – You and your buyer might disagree on the value of needed
upgrades. For example, you might feel $7,500 is a fair cost for a new countertop
whereas your buyers might expect considerably more; this can lead to more
negotiations and lower sales price.
• Home Condition – A property that shows its age can prompt the buyer to worry about
the overall condition.
• Loan Approval – Lenders are wary of buyer credits; in fact, upgrade credits are no
longer possible. You might have a buyer unable to take advantage of the credit at all and
you could lose the buyer.
Home design trends change quickly. If you’re ready to sell, it could be tempting just to list your
home in its current condition. Before you just add a credit to the listing, consider some simple
updating so your buyers can see the value of your home.