Jump Start the Sale of Your Home
By Stephanie Tallman Smith
Photo: © Steve Rosset/ Dreamstime
Knowing what to do when the market hits a bump in the road can mean the difference between a fast and painless sale and a home that sits unsold on the market for months. This knowledge can also help home sellers enjoy a better selling price and more favorable sales terms.
In the past sellers have resorted to some pretty strange marketing tactics, from offers of free vacations to adding a fancy sports car to the home sale package. Even though these types of tactics grab headlines they are not particularly effective at selling houses. Most home buyers are simply looking for a great place to live at a great price, not a fancy vacation package or new set of wheels.
The best incentives are the tried and true, including:
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Price Reduction - No seller likes to reduce the asking price of a home, but in a buyer’s market this step may be the most effective. Buyers are price-sensitive by nature, whether the purchase in question is a car or a big screen TV. A little bit of wiggle room on the price can do wonders to get a home sold fast.
Offering Help with Closing Costs - Many home buyers, especially first time buyers, find it difficult to come up with the funds for a sizeable down payment and closing costs. Offering to help with closing costs can often jump start the deal and win over reluctant buyers. In many cases simply offering to pay some or all of the closing costs can be just as effective, or even more so, as a sizeable reduction in the asking price.
Help with the Down Payment - Offering help with the down payment can be an effective strategy as well. With home prices at historical highs in many parts of the country, buyers are finding it difficult to put down the traditional 20% on the homes they buy. Homeowners need to be careful when using this strategy however, since they are effectively financing part of the down payment.
Including a Home Warranty - Adding a warranty on the plumbing, heating and cooling systems and other elements of the home can be a remarkably effective sales strategy. A home warranty provides much-needed peace of mind for buyers, and the cost to sellers is generally only a couple of hundred dollars. |
