Home Selling in 06830>Question Details

Russell Prun…, Real Estate Pro in Greenwich, CT

What incentives are you using as a Listing Agent to sell your listings in today's Market?

Asked by Russell Pruner, Greenwich, CT Mon Nov 17, 2008

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Stephen Slotnick’s answer
I don't like that 'pat' answer of just lowering the price! From a mortgage consultant's point of view, I speak with buyers all the time about their potential home purchases. Also, because my career has predominantly been in joint ventures with Realtors (as their in-house mortgage consultant), I know the way Realtors try to position a property to be more appealing to buyers.
Offering an incentive, like paying closing costs, or buying down an interest rate, can have a dramatic effect on making a sale work. For instance, if a home is listed at $450,000, and you're (as the agent) recommending a reduction of $20,000 to help 'position' the home, the seller would be better off in several ways offering a 'concession' to a buyer. One is to pay the closing costs. Typical closing costs (in this price range in the NJ market) shouldn't exceed $10,000. If a buyer is 'short' cash to make a purchase, they may come closer to asking price if they know their costs are covered. The difference in mortgage payment is negligable. A second way is to have the seller pay 1 or 2 points toward a permanent 'buydown' of the buyers' interest rate. In some cases, the lower payment, and permanent reduction in payment, helps the borrower feel more comfortable paying the higher sales price for the home.
In both scenarios, the benefits to the buyer(s) are obvious. However, there are also benefits to the seller, besides getting the home sold. Paying closing costs or points may be tax deducitible as an expense of selling the home, reducing the tax basis of the sale (benefiting the seller). Further (and if I'm mistaken please let me know), if the seller pays the buyers' points, not only is that an expense for them on the sale of their home, but I believe the buyers can also deduct those points, since they were technically 'paid' as part of the purchase price of the home (I know someone's going to check me on that).
Having worked with Realtors almost my entire career, I hear all the 'stuff' they bring back to the office in terms of opinions, and excuses. Take my advice...do something out of the ordinary, and put that information into the MLS so EVERYONE can see it!
Good Luck!
Stephen Slotnick
Mortgage Finance Consultant
SunQuest Funding LLC
2 votes Thank Flag Link Wed Nov 19, 2008
Its all about location + condition = price.
0 votes Thank Flag Link Mon Dec 22, 2008
I disagree with you Scott and think that Stephen has some great ideas that you can market. Market being the keyword, we are salespeople. I sell the american dream, you sell houses, Stephen has obviously been in the business for a while and realizes that sometimes something more has to be done. We may have input on the list and sale price but that is not our decision and I am tired of agents blaming everything on price. It is a little more complicated than that, it is perceived value, the incentives might actually be the same as a price drop but they could help the buyer get into a home easier or help lower the mortgage payment.
0 votes Thank Flag Link Thu Nov 20, 2008
The mortgage officer's advise is nice, however, it depends on what you are trying to achieve and I'm not trying to be a smart aleck when I say this. If you are trying to get more traffic into the home, LOWER the price. If you are trying to get an interested party to choose your home over another home they are considering, LOWER the price. All the gimmicks are nice, they certainly can and have enticed a buyer to select one home over another and have increased traffic. But in the end, the buyer wants the most home for the least amount. Lower the price.
0 votes Thank Flag Link Wed Nov 19, 2008
I agree with all so far. I have never in 25 years found incentives to work well in selling a home. I think all markets today are about PRICE,PRICE,PRICE. At least in our market in Greenwich, CT there is always a Buyer at the right price for a property. This Buyer might not even be in the market looking right now but for the right home they would move. Our problem continues to be Sellers and Listing Agents who put listings on the market at greatly inflated prices. We need to continue to reprice our market and become more realistic about the realities of the new economy we are dealing with now and into the future. We also need stablitiy in the job market along with the loosening in the credit markets. Is this too much to ask - maybe it is for right now. But I know one thing the market will come back it is just a question of when.
0 votes Thank Flag Link Wed Nov 19, 2008
The old tried and true, PRICE. Seems consumers want a deal, a great deal today. Show them how much better your listing is versus the competition, they will buy yours, EVERYTIME.
0 votes Thank Flag Link Wed Nov 19, 2008
Wouldn't you think that if a buyer is not interested in a property, with or without a lawn-guy or a cleaning service for a year, they're still not going to like the property itself. So, would it really make a difference in putting the incentive out there? I'd like to think so but I really don't know...
0 votes Thank Flag Link Wed Nov 19, 2008
The best incentive to selling ant property is to price ithe property so that it is an accurate reflection of the current local real estate market. Anything else is fluff..........

Today's serious buyers are looking for value. The best thing we as agents can do is try to accomodate them by pricing accurately.
0 votes Thank Flag Link Tue Nov 18, 2008
Absolute Honesty and top-notch marketing with a two-prong approach driected toward both Buyers and Agents. To sell in today's market, pricing must be correct & marketing must address the properties strengths
0 votes Thank Flag Link Tue Nov 18, 2008
Overall value. Think the best bet is to just be as honest and stright-forward as possible.
0 votes Thank Flag Link Tue Nov 18, 2008
That's easy..... Lower Prices :)
Web Reference: http://www.carlguild.com
0 votes Thank Flag Link Mon Nov 17, 2008
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