I was asked today by a home owner whether is was better to include an allowance so that a prospective buyer could buy carpet or should they go ahead an install the carpet now and hope that this would attract a buyer faster.
Although there can be many different scenarios whenever people are involved, I believe that installing the carpet now is the best answer.
Let's go through the reasoning. From a neuroeconomics position (the study of human decision making), we consumers are very visually impacted. You can tell me all day that you intend to give me money for new carpet, or even that you intend to install new carpet, BUT all that I see is the old nasty carpet in front of me. As a buyer, with numerous homes to choose from, I'll choose the home that made the best impression on me.
We (consumers) want it NOW not later. You say I can have new carpet; well then where is it? I want it now. From a psychological standpoint, future benefits are weighted less against current benefits. Which would you rather have, $100 today, or $100 in a month.
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