Home Buyer Incentives: Best of 5

Home Buyer Incentives: Best of 5

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Home Buyer Incentives x5

Sellers can offer home buyer incentives and promote them in a number of ways — some more strategic than others. Putting incentives out there as part of your marketing will surely get buyers in the door. So if you’re having a hard time selling or know up front that your home will be a tough sell, advertise the incentives implicitly. If you have a buyer, and you’ve come close to negotiating but are stuck, these incentives, pulled out at the eleventh hour, can help move the deal over the finish line.

  1. Buy down their interest rate
    1. Most home buyers today need a mortgage to make a purchase. If buyers want a lower rate, they can pay for points and sellers can purchase points for a buyer
    2. A buyer offered a 3% rate on a 30-year fixed mortgage, the buyer (or seller) can pay 1% of the loan and get a reduced interest rate. For buyers, this means lower monthly payments for many years, which is more valuable than a small reduction in purchase price. This can be one of the most power home buyer incentives
  2. Include furniture or window coverings
    1. Buying furniture or finishes after closing can be a huge incentive. Owners who have renovated their home often chose furniture that matches the home’s new look. Some homes show so well, buyers want to purchase the house and the furniture in it
    2. In a home with custom furniture, you might consider offering the furniture with the sale. It may help sell the home and is always a nice perk as home buyer incentives go
  3. Credit for non-recurring closing costs
    1. Buyers often come back to the seller after inspections and request repairs to the home. The wish list can include anything from patching roofing to replacing windows and repairing dry rot. If not to the buyers’ specifications, the repairs can hold up the closing
    2. One way to incentivize buyers to continue with the purchase is simply to offer them a credit for closing costs, which goes to the buyer as cash in their pockets
    3. Many buyers ask for credits and may not do the repairs for months. It’s better to give them cash and let them do as they see fit.
  4. Offer buyers’ brokers higher commission
    1. It’s not uncommon for a seller to offer a ½% or even 1% bonus commission to the buyers’ agent for a property that’s having trouble selling. Agents make these offerings by interoffice communication and word of mouth
  5. Credit for “Close By” Date
    1. A seller might have a variety of reasons for wanting to close quickly. Sometimes the consequences of not meeting the closing date justify offering a small bonus or credit to a potential buyer for meeting a specific closing date

If sellers want a quick closing, they can offer a credit. For an investor or flexible buyer, a quick closing is simple. Offering these as home buyer incentives is icing on the cake

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