Do's and Don't of Home-Buyer Incentives #homeseller #realestate #sold

Source:  HouseLogic, G.M. Filisko

Be sure you're sending the right message to buyers when you throw in a home-buyer incentive to encourage them to purchase your home.

When you're selling your home, the idea of adding a sweetener to the transaction - whether it's a decorating allowance, a home warranty, or a big-screen TV -- can be a smart use of marketing funds.  To ensure it's not a big waste, follow these do's and don'ts:

​- Do Use Home-Buyer Incentives to Set Your Home Apart From Close Competition.
If all the sale  properties in your neighborhood have the same patio, furnishing yours with a luxury patio set and stainless steel BBQ that stay with the buyers will make your home stand out.

- Do Compensate for Flaws With A Home-Buyer Incentive.
If your kitchen sports outdated floral wallpaper, a $3,000 decorating allowance may help buyers cope.  If your furnace is aging, a home warranty may remove the buyers' concern that they'll have to pay thousands of dollars to replace it right after the closing.

- Don't Assume Home-Buying Incentives Are Legal.
Your state may ban home-buyer incentives, or its laws may be maddeningly confusing about when the practice is legal and not.  Check with your real estate agent and attorney before you offer a home-buyer incentive.

- Don't Think Buyers Won't See the Motivation Behind A Home-Buyer Incentive.
Offering a home-buyer incentive may make you seem desperate.  That may lead suspicious buyers to wonder what hidden flaws exist in your home that would force you to throw a freebie at them to get it sold.  It could also lead buyers to factor in your apparent anxiety and make a low-ball offer.

- Don't Use A Home-Buyer Incentive to Mask A Too-High Price.
A buyer may think your expensive home-buyer incentive -- like a high-end TV or a luxury car -- is a gimmick to avoid lowering your sale price.  Many top real estate agents will tell you to list your home at a more competitive price instead of offering a home-buyer incentive.  A property that's priced a hair below its true value will attract not only buyers but also buyer's agents, who'll be giddy to show their clients a home that's a good value and will sell quickly.

If you're convinced a home-buyer incentive will do the trick, choose one that adds value or neutralizes a flaw in your home.  Addressing buyers' concerns about your home will always be more effective than offering buyers an expensive toy.

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