Homebuyer Incentives - Tips to Make the Sale

Author: Stephanie Larkin

| Posted: 04-05-2008 | Comments: 0 | Views: 3 | Rating: (50)

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The current real estate market is not ideal for sellers. With few buyers and more homes going on the market every day due to foreclosures, it can by months until you sell your home. If you are trying to move as quickly as possible, that could be a real problem. Homebuyer incentives, however, are a great way to seal the deal. What can you offer to homebuyers who are potentially interested in your house? It's a buyers market, and while a few years ago buyers would have to compete in a bidding war for your home, today you have to compete with others selling homes in the same neighborhood. Homebuyer incentives can help you "win" that sale.

Price Cuts

The first, and often most effective, type of buyer incentive is simply cutting the price of the house on the market. Check out the listing price for similar homes. How long have these homes under these prices been on the market? You can regulate how well your house is priced by how much traffic you are getting. Little to no traffic means that people aren't interested at all because your house is probably priced way too high. If you're getting traffic, but not any offers, your price is probably just slightly too high.

Most houses in the past year or so have cut prices around 5%. However, many people are beginning to cut prices even more, offering 10% or more in price reduction. By cutting the prices of your home, it is easier to find people who are interested. After all, keep in mind that many homebuyers are suffering from the current slump in the economy. They simply can't afford homes at higher prices.

Closing Cost

To go along with price cuts, if you offer to pay for some or all of the closing costs associated with buying the property, you might be able to convince homebuyers to take a second look at your property. Closing costs are a huge expense. These fees cover things like underwriting, document preparation, title transfer, appraisal, and so forth.

Why can paying for closing costs entice buyers? Well, in addition to being a huge expense, for some people, paying for closing costs means that they're more likely to be able to buy in the first place. While someone with decent credit can rather easily get approved for a mortgage, the down payment and closing costs are money that comes from a person's savings. Not having to pay for closing costs means that a person can afford to put more money toward a down payment, thus being able to afford a bigger house.

Updated Appliances, Bathrooms, and More

You may also be able to entice buyers if you are willing to bring the home into the 21st century. The older your home looks, the more quickly buyers will turn away. There are a number of things you can update in a home, including the following:

Kitchen appliances, like the stove, refrigerator, and microwave
The washer and dryer
The bathtub, sink, or vanity
The heating system in the house
Windows
Home entertainment components, like the built-in sound system

Think outside of the box! Quick fixes and relatively inexpensive changes can make all the different when you're selling. You can also get rid of the old and offer to install, on your dime, the appliances, etc. that the buyers choose (within a certain price limit). That lets them customize the home for their needs.

Credits Toward Improvements

Putting in a pool or hot tub is a great way to entice buyers, but if you aren't willing to do the work, you can offer a credit toward these future improvements. For example, offer to pay $10,000 toward the addition of a pool to the backyard when they decide to do it. This isn't exactly the same as free money or a discount off of the home's price, but it is a great way to target specific buyers.

When you meet with potential buyers, find out what they want most. If they continuously mention that they wish the property had a pool, your offer can make that possible for them. For another buyer, it might be offering money toward a desk; for yet another, it might be offering money for an addition of a master bath. Find out what the buyer wants and hit it!

Offering homebuyer incentives can really help you sell your home faster. In today's market, it is hard to find a buyer and even harder to see the deal through to the end. Think about what you can offer in order to make that deal.

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Article Tags: Mortgage, First Time Home Buyers, Fsbo, For Sale By Owner, Selling Tips, Air Conditioner Repair, Home Owner Warranty, Home Buyer Warranty, Home Seller Warranty, Homeowner Program, Plumbing Problems

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About the Author:

Stephanie Larkin is a freelance writer who writes about large businesses for home owners such as Old Republic Home Protection and American Home Shield

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Homebuyer Incentives - Tips to Make the Sale

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