Offering Incentives to Prospective Buyers Might Just Help You Sell Your Home

Do you want to increase the chance of selling your home? Some people increase the chance of selling their home by offering incentives to potential buyers, such as offering to pay some of the closing costs or even offering new appliances if a buyer actually buys the house.

Some real estate experts say the most effective incentives you can offer to help sell your home are those incentives that will help bring down the total cost of the home, mortgage payments, or anything that has to do with the total cost. They say that people who are seriously interested in buying a home are not after a trip to Tahiti. They might be skeptical of incentives they look on as fancy gimmicks, which they believe have been added into the price of the home.

For example, some buyers might look very favorably on a home seller paying points to help bring down the interest rate of the mortgage. They also might look favorably on a seller who pays part of the down payment or closing costs on a home.

Closing costs are often between two to six percent of the total price of the home, and those costs can add up. One can see why paying some of these costs, which can include insurance, title search, appraisal fees, and attorney fees might be a big incentive to someone buying a home. Offering such incentives might make your home more affordable and more attractive than other homes buyers are looking at.

Some experts say that one can offer incentives when a home is first listed, to distinguish it from other homes on the market. They could offered instead after a home hasn't sold for a few months, to entice potential buyers without lowering the listed price. They could also be added during negotiations for the sale of the house, if a buyer needs a little push to buy.

While some say offering incentives that bring the price of a house down are the best ones to offer to sell a home, there are other types of incentives some offer. Some have offered cars as an incentive to prospective buyers. Some have offered to pay some money for landscaping, paint, and carpeting. Offering money for such items as those is sometimes especially appealing, if the house is already priced competitively. This will also save you the trouble of doing such work yourself before the sale of the house, and it will allow the buyer to personalize his new home. Some have offered a dollar amount for a new buyer to go out and buy kitchen appliances for his new home.

Experts say the condition and location of a home are the most important points in selling any home. Nevertheless offering incentives might be the key point in selling to some home buyers. Experts also say any incentives offered to a home buyer should be placed in writing.

If you don't have the available funds to help in paying a buyer's closing costs or down payment, an alternative might be to lower the cost of the home by the amount you would help if you could. Besides helping the buyer immediately, this will also save him money on interest on mortgage costs and property taxes.

Another incentive offered to home buyers by home sellers is a home warranty. Such a warranty will often cover the cost of air-conditioning, heating, the electrical system, and water heater. Optional warranties are available for pools, appliances, and other items. Such a warranty can give a new home buyer peace of mind, and it should only cost you between $250 to $600.

If your house has been well kept and is in a good area, these are your most important selling points. Offering incentives might just be the key you need to actually motivate a potential buyer to become an actual buyer.

Citations:

Offering Home Buyer Incentives Can Help Sell Your House by Samuel J. Tamkin, Thinkglink.com

Effective Incentives to Woo Buyers and Sell Your Home, no author listed, webcache.googleusercontent.com

Home Buyer Incentive IdeasContributor by Victoria Hunter, Ehow.com

Tips For Home Owners Offering Incentives in a Down Economy, by Kristina Jarczyk, Ezinearticles.com