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7 Selling Incentives to Motivate Buyers
Some home sales need extra incentives to get buyers off the fence. Below you will find a sample of the possible incentives that might entice a buyer to make an offer. Which incentives, if any, are appropriate depend on your market, your home, and the prospective buyers that you are marketing to.
Free Appliances
Most home sales will include the cook top, oven, and dishwasher, but the refrigerator, washer, and dryer are typically not included. Offering these appliances to potential buyers is a nice incentive especially for first-time home buyers that are looking for a move-in ready home. You can sweeten the pot even more by offering all new appliances if the existing ones are old.
Improvement Allowances
An allowance is a credit given to the buyer to compensate for defects or worn out finishes. Some common ones include carpet, landscaping, kitchen, and roof. Allowances are a great incentive to get buyers to look past defects especially when you don’t have the cash to improve them.
Pay for Closing Costs
Along with the down payment, closing costs are the additional funds that a buyer needs to bring to closing to cover the cost of getting their loan. Offering to pay for a portion of the closing costs can be attractive to buyers that are trying to limit their out of pocket expenses for their home purchase. It is a good idea to put a cap or state an actual dollar amount on this incentive.
Pay Interest Discount Points
An interest discount point is equal to 1% of the buyer’s loan amount. The lower interest rate will reduce the buyer’s monthly payment and total payments over the life of the loan. This can be attractive to buyers that are trying to stay within a monthly payment budget. On larger loan amounts, the lower rate can have a decent impact.
Pay for Inspections
Almost all home buyers will have a complete home inspection done during their option period. The cost can vary from $500 to $1,000. The buyer typically pays for this but sellers can offer a credit and a repair allowance to address any items found in the inspection.
Offer Upgrades
Offering upgrades is similar to offering allowances. The money is tagged for improvements. The big difference is that this incentive is offered as work to be completed by the seller before closing. This can be a nice bonus for buyers who don’t have the money or time to do improvements after closing and prior to move-in. The most common upgrades are flooring, kitchen counter tops, and appliances.
Pre-paid Services
After closing on a home there are a lot of things that new home owners have to coordinate. Pre-paid services like house cleaning and landscaping can be a nice incentive to reduce some the action items that home buyers need to setup.
Mark Brawley
Mark is a real estate broker serving Houston's close-in neighborhoods. Read what Mark's clients have to say about his service at Zillow.com. Connect with Mark on Google+ or contact him at mark@norhillrealty.com or on his mobile at 281-650-3384.
Timbergrove / Lazybrook Market Update – April 2012
Below you will find the most recent data on home sales and prices for the Timbergrove and Lazybrook neighborhoods in Houston, Texas. If you are interested in receiving monthly Houston and Timbergrove/Lazybrook real estate news updates, then sign up for our RSS feed to receive instant updates. For more information about Timbergrove/Lazybrook and to view past market updates, check out our Timbergrove/Lazybrook neighborhood information page. Or email us at vincent@norhillrealty.com.
Sales Activity
Another pretty good month for Timbergrove/Lazybrook based on the number homes sold in April. 12 homes closed sale in April and 14 homes went Option Pending. The average days on market for homes sold in March was 57 days.
Active Listings
Inventory remains low in Timbergrove/Lazybrook, which is great news for potential home sellers. When inventory is low (i.e. supply), and demand is elevated, home sellers usually see higher sales prices (i.e. a seller’s market). At the close of the month, there were only 29 total listings on the market and 23 new listings came active on the market in the month of April.
Home Prices
The average price for properties sold over the past 12 months (ending in April 2012) was $303,168. That’s up 5% from the previous 12 month period (ending March 2011). Timbergrove/Lazybrook, like most other inner loop area neighborhoods, has been increasing at a moderate pace since 2008.
Located just west of Houston Heights, Timbergrove and Lazybrook are two of the hottest neighborhoods for young families in Houston’s Inner Loop. Downtown Houston and the Uptown/Galleria area are a short drive away. Furthermore, Timbergrove and Lazybrook are conveniently located close to restaurants and bars in Houston Heights, the Uptown/Galleria area, and theWashington/Rice Military Corridor. For prospective buyers that are seeking close proximity to Houston’s great parks, Timbergrove and Lazybrook is home to 11th street Park, Jaycee Park, and the White Oak bayou bike trail. Memorial Park and its great jogging trail is also nearby. Timbergrove and Lazybrook is also home to a couple of our agents.
Vincent Biondillo
Vincent is a Realtor serving Houston's "inner loop" with phenomenal home buying and home marketing services. Read what Vincent's clients have to say about his service at HAR.com. Connect with Vincent on Google+ or contact him at vincent@norhillrealty.com or on his mobile at 713-449-2416.
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