Sellers Can Influence Buyers With Incentives
When you are a seller in a slow market, you should use every tool at your disposal to influence buyers to look at and purchase your home. Buyers can be stimulated by money that is handled outside the asking price.
For example, the price of your home might be acceptable to a buyer, but he or she doesn't have enough money on hand for the down payment required by a lender. You can assist with the down payment in the form of cash at closing.
Another way you can help someone buy your home is to reduce their monthly mortgage payment. By paying points on the buyer's loan you lower their interest rate which reduces the payment amount. Each point on a loan equals 1% of the borrowed amount and can make enough of a difference to get a buyer qualified.
Many buyers have fear of unexpected expenses that occur soon after moving in. To lower their fear you can buy them a Home Owners Warranty (HOW) that provides 12 or 13 months of coverage for appliances, plumbing, air conditioning and heating, and electrical fixtures.
A buyer might be influenced by your offer to pay for 12 months of yard maintenance, pool service, or Homeowner Association (HOA) or Condo Association dues. You can also pay for all or part of the current or next years property taxes or insurance costs.
A purchaser who is short on cash could be stimulated to pay full or almost full price for your home if you paid all or part of their closing costs. They include closing agent (attorney or title company) fees, deed recording fees, mortgage title insurance, and other fees connected to the financing and closing of the purchase. Closing costs can vary widely, but are usually between 2% and 7% of the amount financed or the entire sale price. In FHA and VA mortgages the seller has to pay certain costs anyway.
If you are moving into a smaller home or relocating a long distance away and don't want to take all of your furniture, appliances, or fixtures you can offer them to a buyer. Sometimes that is precisely what it takes to make a sale.
In conclusion, it isn't only the asking price that makes a buyer choose a particular home. You can make your home more competitive and attractive with one or more buyer incentives.