Incentives in A Tough Real Estate Market
3 min read
In a real estate market where competition for buyers is big, it makes sense to offer incentives in the form of cash or other ways. When more houses are available, even if you had prepped up the place and made it look like new, buyers may be looking for more. If you don’t offer what they want, others will. So, how do you make your house stand out from the rest? According to Magnolia Realtors in Temple, TX, you should include the following offers:
- Payment toward some of the buyer’s expenses
- Option to lease the house until the buyer is ready to purchase
- Incentives to agents and other professionals involved
- Items in the property that the buyer would want seller to leave behind
Buying a house is an expensive process. Buyers typically face a wide range of expenses apart from the big chunk of money they try to raise for the down payment. Some of these expenses can be offered by the seller in order to make the deal interesting. There are many creative ways that the seller can proceed in this case. The seller can offer to pay some of the fixed expenses in the list of closing costs. Exactly who pays for what during closing is a matter of custom in any particular county of state. This means there are no strict rules that the buyer or seller should abide. In this sense, the seller can pay the broker fees, title insurance, escrow fees, inspection fees and agent commission which would otherwise be paid by the buyer.
Homeowner’s insurance is another expense where the seller can pitch in. This cost for the first year could be anywhere between $500 to $1300 depending on the location and other factors. All home sales require home warranty during the first year of sale. This is again a fixed cost because it is up to the buyer to continue this coverage after the initial year. Property tax is another item that buyers dread to deal with, especially when other items in the closing document are expensive. Paying a portion of the property tax for the first year or covering it for the rest of the months in the same year of sale can help alleviate some of the buyer’s anxiety. Moving expenses is one more area that seller can contribute for. Although not a part of traditional closing costs, seller can pay some of the cost associated with the buyer’s moving in process; or at least help the buyer find an affordable and reliable mover for the transition.
The house you sell will have a new owner after the closing date, which means they will be receiving the same water bills, association fees, telephone charges, and other utility bills and service charges that you have been receiving till the date of sale. You can offer buyer with information about what to expect in terms of cost and services well ahead of the purchase; something that buyers will be thankful for later.
