Buyer Incentives That May Sell Your Home!
Rick & Rick Strohm, Jr.
September 7, 2011
As we all know, today's real estate market is HARD! It is difficult for sellers (properties are on the MLS & the market for a much longer time) and buyers (tighter lender restrictions, etc.). So to sell you home/property in today's real estate market you just may need to think of some "incentives" to entice the potential buyer. Here are a few you may want to consider:
- Owner Financing. Some buyers cannot afford to buy at the moment, but could pay rent. Other buyers are finding the lending restrictions too strict. This is a great way to sell your home, put money in your pocket and if offers the buyer to purchase your home NOW! Most sellers that I have helped offering owner financing do ask that the buyers out a significant "down stroke" at closing (this would cover all commissions involved and would give them some money to put in their bank account). Keep in mind that owner financing is "usually" not for 15/20/30 years. Most owner financing is for 1-3 years and then the buyer is required to obtain financing through their lending institution.
- Credit for Buyers Closing Costs. A lot of buyers, who are trying to purchase a home during these low prices and low interest rates, are already scraping the bottom of their savings account. Paying for all, some or a portion of the buyers closing costs might just make the deal! Something to think about.
- Buyer Credit for HOA Dues. If your neighborhood/development has an HOA (Home Owners Association) paying for the buyers first year of HOA dues (or any portion of the dues) might get the deal done. You would be amazed at how many deals I've closed where even if the seller offers a few hundred dollars towards the buyers expenses/closing costs the home/property sells. Buyers like any gestures the seller is willing to throw their way!
Steer clear of "Seller Agent Bonuses"! Sellers used to, in our area of the country, offer bonuses (extra money/commissions) to any agent/broker who "brings the buyer" and sells their property. A few years ago the North Carolina Real Estate Commission changed everything making all "bonuses" offered by the seller to the selling agent to be "disclosed to all parties". The main reason was so that it leveled the playing field. Obviously, a selling agent (buyer agent) might
be more apt to show a property if there was a bonus tied to that property.
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if you would like more information about buyer incentives.