Buying or Selling a Home/Carpet Allowance

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Expert: - 4/24/2010


Question
I recently reduced the price of my home which is for sale.  The agent told me we should add a $2,000 carpet allowance because it would make the price/house more attractive. I was told just today that carpet allowances are not legal. Is this true? If so, I am concerned that my agent has had me sign a contract which is not completely legal and would definitely consider asking for a full release on the contract.  I do not want my name on anything that is even remotely illegal.

Answer
Hi Linda,

It is not illegal for a seller to give a credit to a buyer... at least not in California where I practice.  There are and can be restrictions on the lenders side as to how they may want the credit to show.  Typically we show credits towards a closing costs.  So if you are giving the buyer a credit and it shows as a closing credit, he takes $2,000 off his closing costs, and takes that extra money he now has (not used to fund) and buys/cleans carpet... sort of like taking from Peter to pay Paul... it all comes out in the wash... it is just how it gets worded..  

Buying or Selling a Home

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Connie Wildasinn-Broker,GRI,RealtorŪ

Expertise

Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!

Experience

4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!

Organizations
NAR, CAR, WCR, ABR, e-Pro, GRI, BKBIA, CHNA,SSG

Publications
Broker Agent Magazine Long Beach Business Journal Long Beach Press Telegram Signal Hill Tribune Grunion Gazette All Experts Zillow - Lead Agent - Advise Expert Truila - Advise Expert

Education/Credentials
Broker-owner, RealtorŪ, GRI,e-Pro, SSG-Short Sale Certified

Awards and Honors
Managing Broker for MetroCal Brokers. We merged my old brokerage with MetroCal this year, and we look forward to expansion and growth moving forward. We currently employ 30 Realtors and growing. 15 years running top selling agent in Long Beach, South Bay area California. Top Producer 5 years straight Re/Max, C21, Realtyworld.

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upon request = or check out our website www.MetroCalBrokers.com and check the Testimonials section!

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