Why are “generous allowances” for things such as lighting and flooring, important to me as a home buyer?
Many times homes are bid with allowances for things such as lighting, flooring, cabinets, and paint. This is because many times the homeowner doesn’t know exactly what they want until closer to the installation time for these items. With generous allowance provided during the bidding process it allows a more realistic idea of what the homeowner will spend on the items that really make up one of the most important aspects of the home. These are the items with the most emotional and aesthetic value to the homeowner. As the homeowner you don’t want to be surprised that you ran over your budget and have to settle for less than you imagined your dream home to be. This also allows for an accurate accounting with the bank when you apply for a loan. Many times any overages come out of your pocket at the end of the process and cannot be incorporated into your home loan. With the allowances incorporated into the bid, you will already be approved on the amount you spend without any personal finan
