You’ve got a great listing and it’s priced right, but it simply isn’t getting the attention you know it deserves. What do you do to drum up more customers?
There are a lot of answers to that question, but there’s one you may not have thought about: adding additional incentives to the sale.
Builders use incentives to sell new construction all the time, but Realtors® often skip this tactic when it comes to reselling a home later. Thinking outside the box regarding incentives may be exactly what you need to sell homes quickly at top dollar.
Since many buyers will be cash-strapped after buying a home, offering a hotel package or another incentive that will cost the buyer additional money isn’t likely to get much traction.
Instead, focus on saving the buyer money in places other than the price. By offering help with closing costs, you’ll be able to get budget-minded buyers interested in your seller’s home instead of another property.
If you phrase closing costs in terms of percentages – covering 10% of closing costs, for example – you can offer an attractive incentive for far less cost than a price drop on the home.
Help With PMI
Many buyers have trouble saving up 20% for a down payment, so they will be saddled with PMI when they buy a home. If you offer an incentive to help pay for that, you can get a lot more interested buyers.
Since PMI is generally 0.5% – 1% of the total loan amount annually, a buyer could be looking at $1,000 per $100,000 of home. Offering to cover 25% of the PMI for one year could be an excellent incentive that would attract buyers’ attention.
Items of Value to the New Homeowner
Not everything has to be financial. While arbitrary free items may not hit the radar of most buyers, you could offer freebies that are directly helpful to a new homeowner.
If there’s some high-quality furniture that fits perfectly in a room, see if the seller would throw that in as an incentive. Other items that may be helpful include exercise equipment, child’s play equipment in the backyard, and more.
Of course, all of this must be high-quality and in top shape. No buyer wants to end up with broken or worn-out items that the seller was just tired of!
Think Outside the Box
The goal with incentives is to find a new way to compete for buyers’ attention. Dropping the price can cost your seller thousands of dollars. Many of these incentives will only cost a few hundred, but they are unique and will stand out in a sea of homes for sale.
Continue to think outside the box and consider what incentives may work. Often, the solution will be very individual, depending on the type and location of the home, the property the sellers have, and what stage of life potential buyers are in.