The national real estate market is on an upswing, but if you are on the selling end of a property, the sale cannot come fast enough no matter the market. Time and effort involved in selling your home or commercial property is stressful and costly. In order to expedite your sale, consider adding incentives to grab the attention of buyers and garner more traffic. A buyer is always looking for the best price. If your home is priced right, but still sitting on the market, then a well marketed incentive may be the best next step.
Help With Closing Costs
Buyers may have trouble securing the down payment and money for closing costs. One way to defray the buyer’s upfront costs is by offering to pay points, or fees that lenders charge to secure financing, for the buyer. One point is approximately one percent of the mortgage balance. This incentive is a great way to get the buyer to choose your property over one that is not offering to pay points. Other closing costs can also be negotiated into the contract such as fees charged by escrow companies and/or banks and the purchase of title insurance. Be certain to cap the amount you will pay when writing the contract.
Home Inspection Incentive
Another upfront cost is the home inspection. This is almost always required by banks to insure the money they lend is a good investment. The buyer is normally the one to front the cost for this service as well as work needed to fix any problems the inspection turns up. As an incentive, the seller can pick up this cost.
New Home Incentive
This incentive is particular to new construction homes. Since these homes usually include a basic home model that can be altered or upgraded with additional costs, a seller upgrade incentive can be extremely enticing. Offering up to a five percent allowance for upgrades throughout the home is a good place to start depending on the price of the home. This way buyers will not be dissuaded right away when upgrade costs begin to build up.
Home Improvement Incentives
On the flip side, If the property is older and needs work, but you are not able to do it yourself, a fixer-upper allowance could be in order. If you market the home with an allowance for improvement this can be very attractive to buyers who want to customize certain features.
HOA Fees and Lifestyle Perks
A few other opportunities to incentivize your sale are found through making sure the first year of HOA fees are taken care of for the buyer or one year of landscaping fees are paid in order to maintain the current condition. If your home is in a community with a golf club, a trial or year membership to the course is a fantastic incentive so the new buyer can try out what the community has to offer. In the same spirit adding on a golf cart or set of golf clubs is another golf club community incentive.
If you live in an area where there is a lot of outdoor activity such as fishing, hiking, hunting or boating, make sure you are selling the lifestyle as well. If there is a potential buyer interested in any of the nearby activities such as kayaking or boating, consider including your kayaks or jet skis in the home price. Little perks such as these may help to sell the area and your home specifically.
The right buyer looking at the right time with the right incentives can mean a prompt sale. If you have prepared your home with the correct price and attractive incentives it will be hard for potential buyers not to choose your home over others in the area. By planning your sale with a net profit in mind, you will be able to work incentives into the contract that may draw the buyer leaving you with a quick, profitable sale.