That is all those giveaway gimmicks needed to do. Make a potential buyer NOTICE!
When there are 10,000 competing homes for sale and only 500 buyers. It is the flamboyant, the loud, the innovative that will get noticed. $2500 off of a 500,000 house --- snore zzzz snore. But throw in something special and its wake up time.
By the way, a flat screen and L.A. to Hawaii, -- I'm beginning to fall back asleep here. How about a trip to Borneo ! or a Vintage Ford Mustang.or T-Bird?
Second, the bank will only allow a certain amount to go towards the closing costs and again, this is negotiable between the buyer and the seller as long as the bank approves. Some loans you can wrap the closing costs into the loan. So to the buyer, they are actually paying for a trip to Hawaii with a slight increase in their monthly mortgage payments.
A third possibility is a developer is able to buy trips to Hawaii and flat screen TVs in bulk at a discount. But that doesn't matter to you. Negotiate what YOU want and use full retail prices to say, "Now I want $2500 towards closing costs instead of the gimmick."
Yes, this is a gimmick!!! We are seeing a lot of these where the sellers and the Realtors are trying to get their listing to stand out.
Does it work? Rarely. You notice, but do you buy? Price & condition still rule. If they really want to sell they need to price below the competition.
If you find a property you would like to purchase with one of these incentives, you can always offer a lower price if lieu of the incentive. Or you could ask that the incentive money go towards closing costs, but check with your lender first. Many lenders limit the amount of closing costs that can be paid by the seller.
Here in the Inland Empire builders are offering large cash incentives to the buyer and some to agents. The buyer can use the monies to buy down the interest rate, help with closing costs, help with down payment or use for upgrades.
(Realtors are using the incentives to pay bills and buy food.)
Great Luck to you!
It might be the seller or agent has the hook up on on these 'perks' and they won't cost them as much as a deduction in price or seller concessions to buyer.
Maybe, someone who is offering these types of perks will chime in with some insight.