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Asked by RKB, Cary, IL Sun Aug 24, 2008

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Answers

7
Mikey, Home Buyer, Wisconsin
Mon Aug 25, 2008
No, I would prefer the price be lowered. Another local company advertises "preinspected" to which I automatically subtract 1%, as I assume it was figured into the asking price.

Also, the buyer may need to disclose incentives as it may impact their mortgage.
1 vote
Keith Sorem, Agent, Glendale, CA
Sun Aug 24, 2008
RKB
Buyers are always looking for the best value. Your Realtor's job is to expose the features of your home and project the most value in the marketplace. Homes that buyers think offer the most value will sell in a shorter amount of time, for more money, with less negotiating.

As a rule the problem is not that incentives and extras don't work. It's that they are not marketed. So when I market a home, I have a checklist of over 20 items that affect the saleability and we go through that list to see how many extras we can add.

Home warranty is a no brainer, as well as including appliances, patio furniture, perhaps a buy down program to make it more affordable. There are many things that you can do, your Realtor's job is to know what will help you sell for the most money in the shortest time.
1 vote
Dana Schuster, Agent, Slidell, LA
Sun Aug 24, 2008
The price of a home warranty is miniscule if it helps you get your home sold. It's definitely an advantage--it's a comfort/security thing for the buyer. And things can go wrong even in a realtively new house like yours. I really encourage my sellers to buy the warranty. A sellers warranty will protect you if anything breaks while your house is on the market. I don't know what the law is in your state as far as how long your builders warranty(on new construction) is good for,but it may not carry over if you sell the property.
1 vote
James Wheeler, , Tampa, FL
Sun Aug 24, 2008
Buyer incentives can help - but a savvy buyer / buyer's agent is going to ask you to make concessions anyway, and they're probably going to ask for much more than a little warranty. This all comes into play when you receive their offers. If you're not receiving offers, then your house is probably not priced right. If that's the case, advertising that a home warranty will be included probably won't make any difference.
1 vote
Debra Kellin…, , Cincinnati, OH
Mon Aug 25, 2008
Buyer incentives could be an issue with the lender. In essence, the incentive is bringing the home price down, but that is not reflected in the actual selling price. Some lenders have placed limits on buyer incentives to a certain percentage (say 3%) of the sale price. With all the problems the financial institutions have had recently, they are trying to protect themselves by lending on something close to the actual sales price of the home.

Your home warranty offer should be fine, and in our Cincinnati market, most buyers ask for them anyway.
0 votes
Alan May, Agent, Evanston, IL
Mon Aug 25, 2008
There's nothing wrong with offering buyer incentives... but the best buyer incentive today, is an attractive price.

If you're selling in a market where all the competitive homes are offering a home warranty, then bite the bullet and add a home warranty. But I've usually found that people purchasing newer homes are not quite as concerned about home warranties, as most of the homes systems are still under manufacturer's warranties.

Gift cards?? Prepayment of HOA fees, etc... in my opinion, are a waste of money... if you want to attract more attention, and potentially bring more people to view your property, lower the purchase price by the amount you were going to waste on gift certificates and prepaids. If you do it well, you might attract more potential buyers, and that might translate into a sale.

Good luck.
0 votes
RKB, , Cary, IL
Sun Aug 24, 2008
Keith,

Thanks for the good info. I guess maybe the concern that I have had, but have not been able to articulate, is that I don't think our realtor is adequately marketing our house. We have made it clear that we are motivated sellers and would consider a variety of options - homeowners warranty, gift cards, lease options, etc. But he keeps telling us that none of those will work, and keeps telling us to reduce the price... which we have already done on three occasions, from the initial list price which HE recommended to us based on comparables, square footage, market trends, etc. Other houses in our neighborhood, of the same age and condition, are priced higher than ours. But many of them are offering incentives of some type.
0 votes
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