When a person purchases a home that has been recently built, he or she might ask for allowances. An allowance is a bit of money that the builder offers to the home buyer. This money might be used by the buyer for things like carpet, furniture or anything else that they need to outfit the home. The amount of the allowance will typically depend upon the cost of the home. The allowance will be negotiated between the two parties. Not all new home sales will include an allowance, though many will. Allowances are typically given in cash. In some cases, the allowance may be provided back to the buyer after the buyer pays for the property through a mortgage. Because these agreements are independently negotiated by the buyer and the builder, the two parties can get quite creative in coming up with ways for the builder to help the buyer outfit the home.