Take the couple in Glenview IL who are offering a $1,000 bar tab at the bar across the street as an incentive. Will that work? Who knows but it has garnered them increased publicity!
Some of the more traditional incentives I have seen include:
- Seller contribution to closing costs. Depending on the type of loan the amount may be restricted. With FHA loans I believe the limit is still 6% but check with your lender when you get pre-approved for your mortgage. Fannie Mae and Freddie Mac have limits as well (3%).
- Home Warranty. Not a substantial cost to sellers but does offer some reassurance to a buyer. I believe a home warranty should be offered with every re-sale. [List your Viera house with me and I will provide your buyer a free home warranty.]
- Pay points. A point is 1% of the loan amount charged as prepaid interest. Check with your tax expert but I think seller paid points are still deductible. [Disclaimer: I am not a CPA, tax expert or financial planner nor do I play one on TV.]
- Leave a little something behind. Throw in that big ole flat screen TV. Throw in the washer and dryer. Yep, that is right. I have seen some deals where the TV or washer/dryer was the clincher!
Finally, a word of caution about incentives…. incentives will still not overcome an overpriced property that must still pass the appraisal process!
Call me when you are ready to sell your Viera, Suntree or Rockledge, Florida home.