Replacement vs Allowance (Houston, Howe: hardwood floors, transplants, for sale)

[GripeWater]

What do suggest for sellers in DFW market, to replace and remodel or give allowance? Are allowances legal in Texas?

https://www.city-data.com/forum/real-...e-replace.html

[BigDGeek]

I'd rather pick my own than live with someone else's decorating choices. That's just me though.

[Rakin]

If you want top dollar, the house should be in top condition.

Replace the flooring or carpet.

[FalconheadWest]

Underwriters do not approve allowances anymore, and title companies don't want to hold the money in escrow because they have to hold a certain percentage above the escrowed amount. They don't want the responsibility. That's why I said in the other thread that allowances aren't "allowed" anymore. You would be paying for a buyer's closing costs, and if they already need closing costs, they are only allowed to obtain a certain percentage based on what type of loan they're getting, so if your "allowance" maxes out their allowed amount, they won't get closing costs on top of it, and they'll still be out more money.

Just replace or price your home well below comparable properties with it replaced as buyers estimate up for repair costs.

[Johnhw2]

Originally Posted by GripeWater

What do suggest for sellers in DFW market, to replace and remodel or give allowance? Are allowances legal in Texas?

www.city-data.com/forum/real-estate/2021680-flooring-allowance-replace.html

I did the major upgrades of my home in Houston before selling. Hardwood floors, granite counters, upgraded hardware etc. I offered allowances to one buyer whom I did not trust to accept repairs I was willing to make but did make those repairs for a second buyer after the first one flacked out. There was not issue with my allowance offer which was not huge and the house was significantly upgraded for the area it was located. My allowances were less than 1% of home sales price.

[Farmersvilling]

I would want a fair price so later I can get work done to match my taste and requirements. If I can get a good house in a neighborhood of my choice for a fair price then getting it up to my code is a good opportunity in my book.

[TurtleCreek80]

My experience is that most buyers want everything "done" and move-in ready. Especially in my generation (30's), it seems like we are the only ones of our large group of friends who has bought & remodeled. I am sure most of our friends would have passed on our awesome house because of outdated hardware/lighting and some dingy paint colors. The few friends who saw our house "before" cannot believe it's the same house now that they first saw in it's outdated state. We didn't when spend a ton of money on the enhancements/ upgrades we made, but visually it made a huge impact in making the house appear more open/ lighter/ brighter.

Most buyers have NO vision and if you want to get top dollar, you have to have a house in perfect condition (updated kitchens & baths, a current paint palate, fresh carpet/ window treatments, even current furniture & decor even though it isn't for sale!) and also professionally staged & de-cluttered. Especially at higher price points ($500k-ish & up, depending on area of town). HGTV, Pinterest, and Houzz have pretty much ruined buyers by setting highly unreasonable expectations

Also, even if your home is in the first time buyers market, those buyers tend to have enough trouble scraping together a down payment and don't have much leftover for furniture / remodeling post-closing. It's much easier to come up with an extra $4k in cash to put down than pay $20k out of pocket for a bathroom gut.

[MckinneyOwnr]

My parents bought their new house last Jan, they were given $4k allowance to replace carpet in two rooms upstairs, as well as finish off a storage room that had just been added but had no flooring, paint, etc. Neither party had a problem with this.

EDIT: Almost forgot, they were also given $1200 to fix a drainage situation in the backyard to put in french drains in two spots.

[BigDGeek]

Originally Posted by MckinneyOwnr

My parents bought their new house last Jan, they were given $4k allowance to replace carpet in two rooms upstairs, as well as finish off a storage room that had just been added but had no flooring, paint, etc. Neither party had a problem with this.

EDIT: Almost forgot, they were also given $1200 to fix a drainage situation in the backyard to put in french drains in two spots.

Who puts in French drains for 600 apiece? I want their number!

[GripeWater]

I would rather do it myself no matter if I'm selling or buying. It saves money and you get to do what you want. However, you guys are absolutely rght about most buyers not looking past old carpet,brass hardware and funny paint, specially immigrants and transplants.