Home Selling in 92886>Question Details

Raj, Home Owner in Anaheim Hills, CA

Seller's Incentives for Buyer's

Asked by Raj, Anaheim Hills, CA Thu Mar 17, 2011

If i want to sell my property in current buyer's market, what kind of incentives will attract a buyer
--> closing cost
--> 1 yr HOA dues
--> Home Inspection
-- > Appraisal fee

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Answers

33
Dave Gubler | Broker’s answer
You want to price correctly so that you attract the maximum number of interested buyers. Secondary incentives are not as powerful, in general, as correctly pricing the home. The one exception might be closing costs to a down payment "poor" FHA buyer.
3 votes Thank Flag Link Mon Mar 28, 2011
Price is the grand-daddy of all incentives. I would start there unless the buyer is FHA and then closing costs are, of course, a great incentive.
3 votes Thank Flag Link Mon Mar 28, 2011
I won't write an enormous paragraph for you. It comes simply down to PRICING IT RIGHT!

Hire an agent who is going to be brutally HONEST with you & not tell you things you WANT to hear, just so they can get a listing.

You do not need to offer 1yr hoa payments, free inspection appraisal fee & the like.

Offering some closing costs is nice, but that's not what gets a buyer interested in making an offer on your house.

Oops, I guess I wrote a little paragraph.

If you'd like to talk some more about this, please email me or call me directly, I'd be happy to be brutally honest with you!

EmilyKnell1@yahoo.com
562-430-3053 cell
Realtor Since 1996
2 votes Thank Flag Link Thu Mar 17, 2011
Hi Raj!

I agree 100% with the agent below! I don't know anything at all about your home but the Yorba Linda Market is pretty healthy right now. If Price, Condition and Location are all in sync, your home could sell very quickly and without incentives. If these elements are NOT in line, incentives will probably not help!

Of course, the lower price ranges are moving more quickly ... In Yorba Linda, this means homes priced below $600,000. However, the higher priced properties are selling too.

While it may be a good idea to have your home inspected before putting it on the market ... just to know where you stand as to condition ... many Buyers will still elect to get their own second physical inspection from a company THEY choose and will be quite willing to pay, and expect to pay, for it themselves.

Most qualified Buyers, today, do not ask for Closing Costs and most Sellers do not offer it up front. It may come up as part of an offer, and if it does, it can be dealt with at that time. Sometimes by raising the price to compensate the Seller for Costs credited. Depends on the circumstances surrounding the offer and the Listing Price of the home.

Unless your HOA dues are uncommonly high, offering to pay the dues for one year probably will not have much of an impact. Buyers expect to pay Association Dues if they buy in a community that requires them.
If they are VERY high for the area, offering to pay for only one year will not have much of an impact either ... Buyers will look to the future. Best to offer the home for slightly below market unless it is a truly exceptional property. Then, price at Market and see what the response is.!

I have been a full time Realtor in Yorba Linda (and live in 92886) since 1982. In all that time, I have never heard of a Seller offering to pay the Buyer's appraisal fee. Paying $400.00 + or - for an appraisal fee is less than a drop in the bucket if the property is over priced.

You should pay close attention to the comps and realistically compare them to your own property. Price is the most important factor. The Buyer has to live with it every time he pays his taxes and makes his payment .... and of course the home MUST appraise, or he will not get his loan. Buyers and their agents, today, are all very much aware of the comps ... and their condition and location.

One other piece of advice that is tried and true ... Don't offer less than 2.5% commission to the Selling
Broker ... you will get fewer showings. All commissions are negotiable but you get what you pay for when it comes to commission. True story.

I write Market Conditions reports for Realty Times which also appear on Realtor.com. I am in the long overdue process of updating my Yorba Linda report with a lot of good current, valid information. Send me your Email address and I will forward the brand new report to you in a couple of days. I will also be happy to answer any other questions you may have!

Marlene Prescott
Prudential CA Realty
714 283-6643
marlenepre@aol.com
CA DRE LIC# 00840097
1 vote Thank Flag Link Thu Mar 17, 2011
First and most important make sure your home is priced right.

Now, incentives do attract buyers, especially first time buyers.

Make sure your agent stipulates that commissions will be paid based on sales price less concessions.

This way you do not pay a commission on funds you have given away to the buyer.

Best of luck to you.

Kawain Payne, Realtor
0 votes Thank Flag Link Mon Apr 30, 2012
Rather than incentives, I suggest that they lower their price.
0 votes Thank Flag Link Fri Sep 16, 2011
I've had clients do really well with a pre-listing inspection before the home goes on the market. You can clean up maintenance issues and price the home right based on the current condition.
0 votes Thank Flag Link Fri Sep 16, 2011
Seller's Incentives are always attractive to buyers. Assisting with closing costs and providing 1 year Home Warranty are great ways to attract buyers. Many sellers are using more creative ways to attract buyers, such as offering Flat Screen TV's, Gift Cards to Department Stores or Restaurants and Weekend Travel Getaways! In this competitive market, homeowners are in competition with the foreclosures and you definitely have to bring your "A" Game!!!!
0 votes Thank Flag Link Fri Sep 16, 2011
My advice is to first be realistic and knowledgeable about the current market. Do your due diligence about what the homes are selling for in your area. Most of the areas in the Metro Detroit area have been hit hard by the economy. I would suggest a CMA (Comparative Market Analysis) be done on your property to show you what is selling in your area and for what price. As a licensed realtor, I can provide this for you at no cost . I am here to help!
0 votes Thank Flag Link Fri Sep 16, 2011
Hello Raj!
Well, buyers are asking for some of these things you're calling an incentive when they negotiate. It's an interesting hook that could secure a buyer, but I wouldn't consider say they stand out. If that is what everyone else is doing in your market, then you want to do it, too. I'm not surprised everyone is echoing price! price! price! It's very much a buyer's market. Buyer's are attracted by price. Make sure your home is staged well.

Best,
SuZ
PML
of Longmont, CO
720 810 0683
bouldersuz@gmail.com
0 votes Thank Flag Link Fri Sep 16, 2011
I agree with what everyone else is saying. If you price the home right then the rest will take care of itself and you won't need to offer anymore incentives to attract the buyer. Since the first thing that will attract the buyers would be the price and condition, other incentives won't be what delivers buyers.

Thanks Hope this helps

Michael Arshaid
DRE#01784611
0 votes Thank Flag Link Wed Sep 14, 2011
Hello Raj,

One answer - Price is the most motivating offer as everyone wants to feel they got the best deal. I am sure you would agree. All rest is negotiable thats in their offer they present to you and what you want to counter back.. Anaheim Hills is a great Area.. How else can I help you? Talk to you soon Ingrid Ski Realtor
0 votes Thank Flag Link Tue Jun 7, 2011
HI Raj: just following up with you. Hope you had your answer from the responses you got. Please contact me if I could be of further help...'


Mahesh
0 votes Thank Flag Link Tue Jun 7, 2011
I've noticed that in the Scottsdale, AZ area PRICE is the most important factor when listing a home. We have many buyers that prefer to fix up a property just to get the "best deal".
0 votes Thank Flag Link Tue Jun 7, 2011
Hi Raj,

You are thinking the right way.....attracting a buyer. One of your suggestions was to pay a year's of HOA, I have found that many buyers love this credit. Even though it's just a dollar figure, they see HOA as a monthly cost which has to go along with a new mortgage, not having that "out of pocket" has been very appealing to many of my buyers.

That being said, you are not really going to pay that every month, but give them a lump sum in escrow.

You sound creative in your thinking and the right agent will compliment this with creativitiy of their own. I know that I like to use unusual credits to attract buyers also...so we are thinking the same way!

Karen
0 votes Thank Flag Link Wed Mar 23, 2011
Hello Raj, great question. I have to agree with Jerry's answer. If you're home is priced correctly you should attract the buyers. If your home is a Standard/Traditional sale this will help attract buyers as well since they seem to be getting frustrated with short sales.

Let me know if you're interested in learning more about my "Get it Sold" within 60-days guaranteed program.

I wish you the best!
0 votes Thank Flag Link Mon Mar 21, 2011
Raj,

We are in a market where resale inventories are growing. So, that means buyers can be more choosy with more inventory to choose from. You want to get the best possible selling price and the buyers want to get the best deal. The curb appeal, interior condition and the showing condition of the property are a key must to attract buyers to want to come in and see your house. It is always helpful to seek the advice of your realtor to maximize the showing appeal of your house. This is much different depending upon your price point. So, at a $300,000 selling price, financial incentives for buyers to qualify for a loan are very helpful. If your house has a fair market value of $750,000, some of the incentives you mention would be helpful if there were an "identical house" for sale in your neighborhood at the same price.

Choose a realtor that can advise you wisely that will target the buyers you are looking for. You are welcome to contact us if you choose to work with us.

Bill Taraschi
ERA Real Estate
714-996-3000, x1337
We Build Real Estate Realtionships For A Lifetime!
0 votes Thank Flag Link Fri Mar 18, 2011
Raj,

Your suggested incentives come down to dollars. Dollars come down to price of home. The price of the home is what a willing buyer and a willing seller will agree on. It isn't about incentiives. To give incentiives somtimes means the house must be overpriced to allow for the incentives. Also over priced homes aren't show as much as competively prices homes. I would be glad to help you in anyway you see fit.

Thanks,
Jerry Reed
714-390-5703
Web Reference: http://www.mrfirstteam.com
0 votes Thank Flag Link Thu Mar 17, 2011
Hi Raj,

Sorry to say but this is not a simple question. What motivates one buyer may not motivate another. The big questions are:

1-Why are you selling your home? We need to start there first. Is it a short sale situation? Do you have equity to negotiate with? etc.

2-We need to see what your home is worth because some price ranges are selling better than others and do not need many incentives to sell.

3-Incentives are usually derived from the negotiating, don’t offer something if you don’t need to.

4-What is the competition in your area? Do you need some cleaning up?

5-Would you like to call me and talk this over? I’m sure we can figure something out to help you.

6-Do you want help from a Pro?

John Siracuse Broker #01415589 714-822-6166 / Johnsiracuse316@msn.com
0 votes Thank Flag Link Thu Mar 17, 2011
Hi Raj,

That is a great question especially when you're trying to sell in today's market. There are many factors to consider before deciding on what incentives to offer to attract the buyers for your home. I love to talk to you about which ones work the best. Please call me at 714-743-9778. I can meet you at the Anaheim Hills Starbucks!

Ashlie DuCros
714-743-9778
ADucroshomes@gmail.com
http://www.AshlieDuCros.com
Web Reference: http://www.AshlieDuCros.com
0 votes Thank Flag Link Thu Mar 17, 2011
Yes you can offer incentives also that may depend if the lender will allow certain incentives. HOA sounds good and there are more you may want to discuss privately. Contact me if you would like go over the incentives. Bye for now. Ingrid Ski Realtor. 949-874-0432.
0 votes Thank Flag Link Thu Mar 17, 2011
Hi Raj:

I think you will find a central theme as far as strategy below (351 answers as of this post):

“How do I sell my home Fast”
http://=www.trulia.com%2Fvoices%2FHome_Selling%2Fhow_do_i_sell_my_h… target="_blank" rel="nofollow">http://www.trulia.com/voices/Home_Selling/how_do_i_sell_my_h…

Best, Steve
0 votes Thank Flag Link Thu Mar 17, 2011
Thanks Raj for your question.
Buyers today are looking for at least a fair market price or better, as in any market, but specially in this market.

If the price is over market, they will not buy the house regardless of what incentives one may offer. Giving incentives is good idea and may help sell your home faster.
I have seen deals where all of these have heped sell the house.

I would be glad to give you a fair market evaluation and give you tips on preparing your house to sell faster and a higher price.

Mike Patel
Web Reference: http://www.mikepatel.com
0 votes Thank Flag Link Thu Mar 17, 2011
Hello Raj,

Good question, and some good responses below. I'm assuming that you are an equity seller, so that, in itself, is one of the best incentives for today's buyers. You should find a Realtor who has long-time experience in your general area - Anaheim Hills. Also, you should interview at least 2 and preferably 3, to find an agent who is on the same wave length you are.

That Realtor should put your house on the market competitive to other equity sellers, but probably a bit higher than nearby REOs ( bank repo's.) or short sales, neither of which will be offering ANY of the incentives you're prepared to offer.

Because a listing agent never knows just what type of buyer will be interested in your house, they should offer an a la carte selection menu for a buyer to choose - one or two items, on the menu - not the entire list - that's called negotiation.

And by the way? This is not really a buyer's market - this is the spring season which is typically the best time for you to be on the market. Just make sure you're on the market by late May, at the absolute latest.

Good luck in making an informed choice, and in getting your house successfully sold.
Web Reference: http://BobPhillips.net
0 votes Thank Flag Link Thu Mar 17, 2011
Hi Raj!
Please call me if you are interested in selling your home because I'd like to discuss each of these options with you because some are better than others depending on your price range. If your buyer is using FHA, their may be limits on what you can offer and pay for as well.

Let me know how I can help. :)
Web Reference: http://www.aaronzapata.com
0 votes Thank Flag Link Thu Mar 17, 2011
It's all about price Raj. Even with incentives buyers are going to negotiate your price down if they can. Buyers are looking first at value then condition and location. List it at the right price and buyers will come.

Raj, I'm local if you'd like to have some comparable sales to get an idea of what your home is worth. My commission structure will net you more money too.

http://wehelpubuy.com/sellers/

Brad Davidson
Broker - 01416432
714-961-8442
Web Reference: http://www.wehelpubuy.com
0 votes Thank Flag Link Thu Mar 17, 2011
Hi Raj,

I think the condition and location of the house are most important. If a buyer falls in love with your house, they will be willing to pay a better price. The second thing is price. A better price can sell a house even if it is not in perfect condition.
Web Reference: http://www.Judysharma.com
0 votes Thank Flag Link Thu Mar 17, 2011
Hi;

Some good thoughts. But the first thing you need to worry about is getting it ready to show, pricing it aggressively and listing with a licensed Realtor. If your market is still falling, it makes it harder to price because you are 'chasing' the price. But a seasoned professional can help.

I taught For Sale By Owners for 5years in a local school district. It is just very hard to sell privately. I'm not in CA so I'm not making a pitch for your listing. You just cannot get the same exposure without a Realtor.

So, the challenge is to get a Realtor that knows what they are doing. I suggest you check out the website below to get tools to help you 'screen' a Realtor.

Good luck.

...Craig
Web Reference: http://savvyagents.com/
0 votes Thank Flag Link Thu Mar 17, 2011
You want to look for incentives that make it easier for more buyers to be able to buy your home. Helping with the buyers closing costs allows buyers to use their money for the downpayment which could increase their purchase price. One year of HOA dues is a nice perk but won't help the buyers qualify for more house. Paying for the home inspection is nice although the buyers usually want to pick their own inspector. The apprasial fee could be included in the buyers closing costs. You want to market your home in a way that exposes your property to the most amount of buyers who can afford to buy your house.
0 votes Thank Flag Link Thu Mar 17, 2011
2 Great Incentives are a) .5% (yes 1/2%) down payment program I have... It's an FHA loan where if your willing to pay the closing cost as a seller, I as the lender can give 3% to go towards the down payment.
(California Home Finance loan aka CHF home Loan)
Not many lenders will offer this loan nor are they approved to do this loan. But I have it!

b) another great advertising or marketing will be if you say "Seller will lower buyers payment for the 1st two years". What this is, is a 2/1 buydown, where you as the seller will pay for the cost to buydown the buyers interest rate for the 1st two years. For instnace yr 1 would be at 3% and then yr 2 the rate would be at 4% then at yr 3 their rate would change to 5% for the remainder of the loan.

Call if you need more info

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Jeffry Lopez
Sr. Loan Officer
NMLS ID# 255097
Progressive Loan Funding (A Direct Lender)
562.881.3603 (Cell)

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0 votes Thank Flag Link Thu Mar 17, 2011
Buyers tend to be very price-sensitive these days. The best way to get your home sold is to be the best-looking property in a great location with the best price. All of the other homes that are less fabulous than yours and not priced as well will make your home look like even more of a gem, and will ultimately help sell it for you.
All of the other things you mentioned are great ideas, too, but price and condition are the things that are really going to attract a buyer in this market. There are lots of fun little things you can do to incentivize buyers beyond just having a lovely, well-priced property, but that's much too in-depth for this discussion. You're welcome to message me directly and we can have that discussion on a live call if you would like. Otherwise, best of luck to you in selling your home! It's a good time of year to do that, so you're wise to begin seeking answers now. Remember, the spring/summer market ENDS in early July, so get that home of yours up for sale soon!
Best of luck,
Kathy
0 votes Thank Flag Link Thu Mar 17, 2011
Raj,

Price, Price, Price. Let me know if you need a market anaylsis.

Joe Homs
Realty Partners
949-625-4533
Web Reference: http://Joehoms.com
0 votes Thank Flag Link Thu Mar 17, 2011
1) PRICE
2) CONDITION
3) LOCATION

All of the items you listed are incentives you can use towards negotiating if need be. I would just check the comparable sale, see what your active competition is and price it accordingly.

If the home is priced right it will sell without any additional incentives.

Best of luck!
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Thu Mar 17, 2011
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