| The current real estate market is not ideal for sellers. | | | | closing costs are money that comes from a person's |
| With few buyers and more homes going on the | | | | savings. Not having to pay for closing costs means |
| market every day due to foreclosures, it can by | | | | that a person can afford to put more money toward |
| months until you sell your home. If you are trying to | | | | a down payment, thus being able to afford a bigger |
| move as quickly as possible, that could be a real | | | | house. |
| problem. Homebuyer incentives, however, are a great | | | | Updated Appliances, Bathrooms, and More |
| way to seal the deal. What can you offer to | | | | You may also be able to entice buyers if you are |
| homebuyers who are potentially interested in your | | | | willing to bring the home into the 21st century. The |
| house? It's a buyers market, and while a few years | | | | older your home looks, the more quickly buyers will |
| ago buyers would have to compete in a bidding war | | | | turn away. There are a number of things you can |
| for your home, today you have to compete with | | | | update in a home, including the following: |
| others selling homes in the same neighborhood. | | | | - Kitchen appliances, like the stove, refrigerator, and |
| Homebuyer incentives can help you "win" that sale. | | | | microwave |
| Price Cuts | | | | - The washer and dryer |
| The first, and often most effective, type of buyer | | | | - The bathtub, sink, or vanity |
| incentive is simply cutting the price of the house on | | | | - The heating system in the house |
| the market. Check out the listing price for similar | | | | - Windows |
| homes. How long have these homes under these | | | | - Home entertainment components, like the built-in |
| prices been on the market? You can regulate how | | | | sound system |
| well your house is priced by how much traffic you | | | | Think outside of the box! Quick fixes and relatively |
| are getting. Little to no traffic means that people | | | | inexpensive changes can make all the different when |
| aren't interested at all because your house is probably | | | | you're selling. You can also get rid of the old and |
| priced way too high. If you're getting traffic, but not | | | | offer to install, on your dime, the appliances, etc. that |
| any offers, your price is probably just slightly too | | | | the buyers choose (within a certain price limit). That |
| high. | | | | lets them customize the home for their needs. |
| Most houses in the past year or so have cut prices | | | | Credits Toward Improvements |
| around 5%. However, many people are beginning to | | | | Putting in a pool or hot tub is a great way to entice |
| cut prices even more, offering 10% or more in price | | | | buyers, but if you aren't willing to do the work, you |
| reduction. By cutting the prices of your home, it is | | | | can offer a credit toward these future |
| easier to find people who are interested. After all, | | | | improvements. For example, offer to pay $10,000 |
| keep in mind that many homebuyers are suffering | | | | toward the addition of a pool to the backyard when |
| from the current slump in the economy. They simply | | | | they decide to do it. This isn't exactly the same as |
| can't afford homes at higher prices. | | | | free money or a discount off of the home's price, |
| Closing Cost | | | | but it is a great way to target specific buyers. |
| To go along with price cuts, if you offer to pay for | | | | When you meet with potential buyers, find out what |
| some or all of the closing costs associated with | | | | they want most. If they continuously mention that |
| buying the property, you might be able to convince | | | | they wish the property had a pool, your offer can |
| homebuyers to take a second look at your property. | | | | make that possible for them. For another buyer, it |
| Closing costs are a huge expense. These fees cover | | | | might be offering money toward a desk; for yet |
| things like underwriting, document preparation, title | | | | another, it might be offering money for an addition |
| transfer, appraisal, and so forth. | | | | of a master bath. Find out what the buyer wants |
| Why can paying for closing costs entice buyers? | | | | and hit it! |
| Well, in addition to being a huge expense, for some | | | | Offering homebuyer incentives can really help you sell |
| people, paying for closing costs means that they're | | | | your home faster. In today's market, it is hard to find |
| more likely to be able to buy in the first place. While | | | | a buyer and even harder to see the deal through to |
| someone with decent credit can rather easily get | | | | the end. Think about what you can offer in order to |
| approved for a mortgage, the down payment and | | | | make that deal. |