Seller Tips
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.
8 Tips to Sell Your Home for Top Dollar
Hire an Aggressive Listing Agent
You want a listing agent that knows your market and knows the potential buyers for your home. An aggressive listing agent won’t just sit back and wait for the buyer to show up, they will use modern marketing techniques along with some old school stuff to get the best price possible. Ask your Agent to provide a specific marketing plan for your home.
Offer Buyer Incentives
Buyers are looking for deals and home runs. If you are offering to include the appliances, pay for a portion of their closing costs, or offer an upgrade allowance, your home will quickly move to the top of their list.
Get Professional Staging and Curb Appeal Advice
The first impression in real estate is the most important. Your agent can offer some great tips and advice, but you might want to take it to the next level and hire a professional stager. This will ensure that your listing photos and online presentation will have buyers lining up to view your home, and when they walk in, they won’t be disappointed.
Get a Pre-inspection
Knowing all of the defects before you put it on the market can help you determine your list price and can strengthen your negotiating position if your home is in great shape. But beware, a home with a lot of problems that you aren’t willing to fix can be a turn off to buyers.
Request Feedback
Your Agent should be very aggressive with requesting showing feedback from your buyer prospects. This will help you address any negatives so that it won’t be a problem for future showings.
Offer a Bonus To Selling Agents
The Agent that represents the buyer is commonly called the Selling Agent. In neighborhoods with a lot of competition and inventory, a small bonus may encourage Agents to show your home over others and this may encourage them to sell it to their client more aggressively.
Price Your Home Aggressively
Pricing your home right the first time is a big deal. An overpriced home will be a turn off to buyers and may limit the number of showings. You don’t want to leave any money on the table and you don’t want your home to sit on the market. Your Agent should be able to provide a professional opinion and may offer to show you some of the comparable active listings prior to setting a list price.
Use Price Points
Buyers don’t tell their Agents that they want to pay an exact dollar amount for their home purchase. They use price ranges like $400k-$450k. Your Agent should be familiar with the common price ranges used in the top online search engines and may advice your to list your home for $399k instead of $405k.
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.
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