Struggling Property Market Cause for Creativity to Sell Your Home …
Just in case you have been under a rock for the past 36 months, the real estate market has been in a bit of a down slump. Sure this may come as a surprise to many of you, but I doubt it.
Many of us were in the middle of our real estate careers when the market reached the top and started this seemingly never ending free fall to what we hope is nearing the bottom sometime soon. Experts are mixed on this prospect all across the country from, we have bottomed out already and are experiencing a recovery, to the bottom will not be here until the middle of 2012. Not sure where you stand on the issue, but if you have property to sell in the next 24 months, then you are going to need some to be creative to move that property in a timely manner.
Incentives could sell your property?
What are incentives? Incentives are extras that you give to your buyer for purchasing your property. You could look at it as a bribe to get the person to make the investment, leap and purchase the property from you. But I know what you are thinking, isn’t bribes illegal? Well, yes and no.
A bribe is illegal if you are doing something under handed and don’t want the proper authorities to find out. An incentive, which can be viewed as a bribe, will not be illegal because everything that you give to the buyer should be presented on the Hud1. This is where all the elements of the transaction is listed and all the information can be found for the appropriate tax purposes.
Do Incentives Work?
The big question about the real estate incentives are do they work? That is the million dollar question that everyone wants to know. If you think about it, considering your home is competitively priced, attractive and is something that someone would want to live in for a variety of reasons, then incentives could potentially push them over the edge and choose your home over another one that they are considering.
All things being equal, if your home is on the market against a similar home and you offer me a 60″ inch flat screen in every room if I make the purchase now, then this may ultimately sway my decision. It just depends on the person and the incentive.
Considering Incentives
Understanding the market is slumping and properties are not just flying off the shelf into the hands of would be buyers, sellers are having to get creative to get out there and sell their homes. One of the most interesting incentives that we saw out there was a family in the Chicago marketplace that is offering a Mercedes Benz with the purchase of their home in Homer Glenn, IL. You can read more on the story here on the Huffington Post.
Not sure if this will work to get the property sold sooner, but at least this family is drawing attention to their offering and not just laying on the sidelines hoping something better happens. They are taking a chance and trying to make something happen.
5 Incentives to Consider when selling your home
This discussion wouldn’t be complete if we didn’t give you at least a few things to consider giving away as incentives to purchase your home now rather than later. Not everyone can afford to give away a car if someone purchases their home, but there has to be something to consider within yoru budget. There is and here is our top 5 ideas.
1) Flat Screen TV. Maybe you can’t do a car, but large TVs still pack a punch with the people. And with the rise of the 3D HD TVs, the prices are steadily dropping to be more and more affordable to give away the the purchase of your home.
2) iPads. People are crazy over these devices, so maybe you could get hold of two of them and give them away as a bonus for purchasing your home. If you think of it, this will cost you less than $2,000, but what a punch this could add to your listing sheets.
3) Appliances. There is nothing like purchasing a new home that already has the appliances in them and won’t cost you a thing. Not to mention, you won’t have to move them in, set them up, or deal with the hassle of selecting them. If you do a good job, this could push a potential buyer over the edge.
4) Home Warranty. This is a classic, but goodie when it comes to giving away incentives for your home to be purchased. People love the security of knowing that if something goes wrong within the first year or two, they are covered. Maybe you could even consider an extended warranty on the home as an extra incentive.
5) Furniture. Maybe you have some nice furniture that you wouldn’t mind leaving behind to the buyers that might put the purchase over the edge. You never know what they are eying in your home, so don’t be shy and ask them about it. This is what it is all about, getting your home sold. Don’t lose sight of that.
How did we do?
What do you think about incentives and would you ever consider using them in your efforts to sell a home? If so, what incentives are you considering or would consider?
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August 14 2010 04:14 pm | need to sell my house rss