James Pycha (R)

1. Reducing the price
A price reduction might be the most common buyer incentive, and often it is the one that is looked at first. The price is something that is a common currency -- it appeals to everybody.
But those extra little perks can grab the attention of a buyer; it also might inspire a commitment from someone on the fence between two similarly priced properties,
2. Paying points
Sellers can offer to pay mortgage points for a buyer, an incentive that Dalzell tends to use in environments like today's, when rising interest rates are at the front of a buyer's mind. One point is 1% of the loan amount, charged as prepaid interest.
For example, instead of having an interest rate at, say, 6.5%, a seller might be able to pay points so that the rate is at 4.5% for the first year.
When a buyer sees a lower interest rate or monthly payment, that's something they can relate to. The setup makes sense for a buyer who has furnishings to buy for the new place; it also can make for an easier monthly-payment transition for families that are upsizing.
A word of caution to buyers considering this tactic, however: This assistance doesn't last forever and usually spans about one to three years. Before accepting, understand and plan for the point in time when the window closes and payments return to their normal levels.
3. Down-payment aid
For some buyers, the hardest part of entering the ranks of homeownership is the down payment -- also an area where a seller can help. It's mostly first-time home buyers interested in this kind of assistance because they're often the ones lacking in funds to complete a deal.
It gets people into homeownership. The disadvantage is that the buyer is financing that additional amount because a seller would likely come down in the price of the home if a chunk weren't dedicated to down-payment assistance.
4. Help with closing costs
Closing costs include items ranging from taxes to title insurance and can add up, ranging between 2% and 7% of the loan value, according to Freddie Mac. So many buyers, especially those stretching to make a down payment, will be interested in having a seller help out.
5. Adding a home warranty
A residential service contract is sometimes thrown in as an incentive because it acts as insurance for a home's systems, often including plumbing, heating and cooling.
At a cost of a few hundred dollars, some real-estate agents consider it an inexpensive add-on that affords a buyer a little extra peace of mind. That peace of mind can be especially welcome during the first year in a house.
Others take a different view, and say there's often confusion over what elements are covered. If a problem is considered a pre-existing condition, assistance could be limited.
Plus, a warranty might not be necessary for a handy buyer who would likely take on projects himself, or if you're buying a condo that's two years old, a home warranty might not be that big of a deal.
Those who accept a warranty should read the service contract and call the 1-800 number to ask questions. If the seller pays for this then buyer should choose which company to use.
6. The little things
Other perks will appeal to buyers, too, ranging from the common to the unique.
Payment of homeowner association fees -- typically associated with condo developments -- are sometimes offered. Sellers with pools might also offer a year's worth of upkeep for it, a welcome help to those worried about the maintenance of the backyard attraction.
Or maybe if a corner of the home was designed to fit a grand piano, leaving that instrument behind entices a buyer to go through with the deal.
The important thing for buyers to remember is that they should honestly want this add-on. Translation: A homeowner with no interest in music probably should give up a piano for a more personalized incentive - Mon Jul 7 2008, 11:18