In real estate when competition increases, listing marketers have to use every tool possible to standout. Every owner wants to attract the best buyers, so agents and owners often go beyond aggressive pricing to “sweeten the pot” for prospects with incentives.
The question is, “which buyer incentives are the most effective?”
Offering an incentive is a good idea, but only if you offer an incentive that can actually attract a buyer. We want to give you the knowledge you need to offer the incentives
Here are the 3 most attractive buyer incentives that are most likely to be successful, according to the 2011 National Association of REALTORS Survey of Home Buyers and Seller:
1. Home Warranty Policies
The thing that is most attractive to buyers is a home warranty policy. The good news is that this is also the most cost-effective incentive option for sellers, too.
Sellers can assure buyers that any unexpected repairs that fall under the warranty policy will be covered. A home warranty typically costs only a few hundred dollars for the seller and can offer the buyer a tremendous amount of peace of mind. There are a number of home warranty providers out there, so make sure you do your research to find the best provider for the home in question.
2. Assistance With Closing Costs
The economic and lending environments have created a situation in which many prospective buyers don’t have the cash required to cover their closing costs. Many times, the difference between a buyer being able to buy a home or having to pass it up can lie in the closing costs.
Sellers who are willing to contribute to the closing costs stand a much greater chance of attracting a larger pool of buyers. Sellers can decide how much they want to offer based on what makes financial sense for them and the prospective buyers. While this might be a bit more costly option than the home warranty, it can be equally as effective in sealing a deal.
3. Remodeling/Repair Credit
If your listing has a feature or flaw that repels buyers, consider offering a credit towards repairs or remodeling. If you are receiving feedback that buyers consistently don’t like a particular aspect of the floor plan or condition of a listing, then consider a credit. This gives you and your client a way to overcome a potential objection right up front. The more objections you can remove, the closer you get to a sale.
These were the top 3 most attractive incentives in according to people who actually purchased homes in 2011. For more, download this great handout on attractive buyer incentives.
The next time you are trying to sweeten the pot for a prospective buyer, consider these options with your sellers. These just might be the incentives you need to land that perfect buyer and close the deal.