Home Selling in 11791>Question Details

Sha Lu, Real Estate Pro in Syosset, NY

How attractive a $5000 credit at closing is to buyers who are actively shopping for homes today?

Asked by Sha Lu, Syosset, NY Wed Oct 20, 2010

Since the federal home buyers tax credit is over now, maybe buyers are more likely to buy a house if the seller is willing to give them an equivalent credit?

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Maggie Hawk’s answer
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Sha Lu,
Your question is a good one—Would a Seller’s offering of a financial incentive to a Buyer make a difference in this market? Based on my own experience and observations, I would have to say it does. I’ve seen it happen.

Of course, the home does need to be priced right compared to its competition. That’s a given. An incentive is NOT a substitute for a competitive price.

However, if a Buyer is comparing several similar (and similarly priced) homes in a market where there is a large inventory, the home that offers the Buyer an opportunity to save additional money will stand out from its competition, and will have an edge.

Warm regards,
Maggie Hawk, REALTOR
Watson Realty Corp.
0 votes Thank Flag Link Thu Oct 21, 2010
Thank you all for responding and I appreciate all the answers. I do know that the house needs to be priced right but I just feel that market is a little quiet right now, so I want to do extra to attract buyers.
0 votes Thank Flag Link Thu Oct 21, 2010
If a property is priced on target, the marketing maximizes exposure, and at the same you are keeping your sellers educated and informed regarding today's market values, there is no need for any type of credit, bonuses, etc., interested buyers will find the property.
0 votes Thank Flag Link Thu Oct 21, 2010
Hi Sha, it is attractive only if the house itself is priced at or very close to market value to begin with. If it comes at the expense of a $30,000 miss compared to market value, it's not going to be of much use.
0 votes Thank Flag Link Thu Oct 21, 2010
Maggie - EVERY agent SHOULD know to price properties CORRECTLY - so tell me why are there SOOOOO many overpriced houses out there?
Maggie - do not blame the homeowner - every agent has the choice of taking or not taking an OVERPRICED listing. If it is not going to sell - why take it? No matter how much service you give it or how much money you spend - an overpriced listing is NOT going to sell.
P.S.
Maggie - "Stress is knowing what you have to do and not doing it."
0 votes Thank Flag Link Thu Oct 21, 2010
@Andy, Ralph, and Desari,
Since our questioner, Sha Lu, is a real estate agent, not a Seller, I think it's fair to assume that she knows the home must be priced right.

Warm regards,
Maggie Hawk, REALTOR
Watson Realty Corp.
0 votes Thank Flag Link Thu Oct 21, 2010
Price is the answer! Not a gimmicky way of credits or bonuses. If they want ot sell they should price the house correctly NOW or end up taking less later on.
0 votes Thank Flag Link Thu Oct 21, 2010
If this is something that your sellers are asking you, their home is more than likely overpriced and they are looking for a magic pill that will sell the house. A $5,000 credit would be helpful if the price is already right. Most buyers are cash poor after the closing coming up with closing costs so the $5,000 might be helpful but it won't get a home sold that's overpriced. You may ask your sellers to increase the selling agent commission to entice agents to work harder to sell your listing before someone else's. Good luck!
0 votes Thank Flag Link Thu Oct 21, 2010
I would ask my seller to consider dropping the price $5000 rather than a credit to buyers. Attractive pricing is always the way to bring the buyers....and the offers.
Web Reference: http://www.DesariJabbar.com
0 votes Thank Flag Link Wed Oct 20, 2010
Sha Lu,
I think it depends on what form that "credit" takes. If the Seller pays $5,000 of the Buyer's closing costs and prepaids, or if the Seller offers to use the money to buy down the Buyer's mortgage, it could make that Seller's home much more attractive than its competition.

I've also seen condo Sellers offer to pay the Buyer's maintenance fees for the first year. As agents, we need to get creative in this crazy market, if we want our listings to stand out. Good luck.

Warm regards,
Maggie Hawk, REALTOR
Watson Realty Corp.
0 votes Thank Flag Link Wed Oct 20, 2010
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