Whether the market is up or down, there will always be motivated sellers. The same can’t be said for buyers, however, if the market is lagging or stagnant. Sellers who want to be successful in moving their home, even when the buyer pool is lacking, often have to come up with creative ways to make their home more desirable than other options on the market.
If you’re hoping to sell a home and are expecting a tough sale, you may want to offer buyers unexpected incentives that will provide the perfect hook. On the other hand, if you’re in the market for a new home, especially if you’re a first-time homebuyer, it pays to be on the lookout for “extras” offered by sellers that can save you money in the long run. In addition, if buying a newly constructed home, you will want to do your research on builder’s incentives.
Here are four incentives you might consider adding to your home to help sweeten the deal and land your sale.
1. Appliances, Furniture, or Window Treatments Included
Some sellers stage their homes to enhance its aesthetic and demonstrate the functionality of living spaces. This staging often includes furniture and window treatments, both of which can cost the buyer a lot of money post-closing. By offering these amenities, sellers can make the buyer’s life much easier and their move less expensive overall.
Sellers may also offer to throw in new appliances with the home. According to House Method, sellers can offer brand new appliances with included warranty plans as well as new renovations to entice buyers. This can be especially attractive to first-time homebuyers who may not own such big-ticket items or those who lack experience with renovations.
2. Interest Rate Buy-Down
In most cases, homebuyers will need to finance with a mortgage loan in order to make a purchase. Lenders calculate the interest rate for this loan based on the current status of the market when the buyer applies. For buyers to lock in a lower rate, they can pay a fee up front. This is known as “buying down the rate.” However, a seller can also offer to buy down the interest rate for the buyer.
3. Higher Commission for Buyer’s Brokers
Although any buyer’s agent should push all homes for buyers, regardless of commission, it’s fair to say that a bonus could bring added awareness to a property that’s not moving. Sellers may offer anywhere between a half-percent and one-percent extra commission to a buyers’ agent for a stale property.
4. Non-Recurring Closing Costs Credit
After a professional inspection has been done on a home, buyers often request needed repairs. Such repairs can include window replacements, patching the roof, or replacing areas with dry rot. Sellers generally want to avoid the hassle involved with completing them, however, and the repairs themselves can delay closing. That’s especially true if they’re not done properly. In order to avoid the burden of repairs, and to ensure a timely closing, sellers can offer a credit to buyers for these non-recurring costs of closing.
Keep these four incentives in mind and you’re sure to find a seller soon. Good luck with your sale!
