MiamiRealEstateKing

Get your home Sold faster

In real estate, Sellers, Short Sales, Trends on September 2, 2011 at 7:13 pm

Many sellers have bought and sold more than one home in their lifetime.  Today, these sellers struggle to understand that this is not the market they bought their current home in, nor the market they sold their previous home in.  They may even be holding on to the hope that the market will recover “soon” and holding on to past selling experiences that no longer work.

In fact, these reluctant sellers could sell their home soon(er) if they could only wrap their head around a few simple selling tricks. These are the same tricks professionals and most successful sellers (those who’s homes are now showing in the “Homes Sold” statistics you receive from your agent), have used to get their home SOLD. What tricks did they use you ask? Simple…

Use Sales Incentives

Incentives are used to market everything, from car insurance, to beds, cars, clothing, airline tickets, etc. Don’t think so? Consider paying attention to the incentives used by pretty much every vendor in almost every commercial on t.v. or radio.

Hec, what incentives have you used to lure your boss, employees, spouse or your kids to do something they initially did not want to do and you “incentiviced” them to?

The incentives don’t have to be big – they can be little – either way, their purpose is to get them (a buyer), to pay attention and to seek you (the seller), out over all other competing homes.

If vendors offers some sort of incentive to get you to call or at least consider their product or service, many of them spending hundreds, thousands, even millions in advertising dollars to make sure they get you to listen or have your eyeballs zoom-in on their advertisement and at least get you to think about and consider them or their product or service, then why would you not consider these tactics yourself to get what may be the largest asset you own ( your home), sold?

Here’s the best part…unlike advertisers who pre-pay for your attention, you often don’t have to spend a dime ahead of closing to get your home sold. So, what did successful sellers use to get their homes sold? Here are four tactics they used – and now, you can too:

  1. Buy-down buyer’s interest rate.  Interest rates are at all-time lows. However, if a marginally qualified buyer may be turned off by the fact that, for whatever reason they will have to buy your home with a higher interest rate, then offering to buy-down their rate may make them re-consider and choose to buy your home over a neighbor’s house. In fact, they may even like your neighbor’s house more than they like yours but, your neighbor may not offer this incentive and this “financial” reward, which may save the buyers thousands over the live of the loan, may be enough to get them to commit and buy your home instead.
  2. Pay for Closing cost.  Besides the down payment lenders require from buyers, they typically also require buyers to come to closing with an additional 3 to 6 percent of the loan amount to cover closing costs such as loan fees, title and mortgage insurance, prorated charges like taxes, homeowner’s insurance, etc. Depending on the lender or loan program the buyer applies and qualifies for, you may be able to pay all or a portion of these closing costs for the buyer. Again, if your neighbor is not willing or able to do this, this may give you the competitive edge you need to get this buyer to sign on the dotted line and place your home on the SOLD side of the equation.  Think about it.  A 3% closing cost contribution you offer to your buyer on a home that requires a $200,000 loan, represents $6,000 the buyers no longer have to bring to closing and use instead for other things like decoration, moving or just keep tucked-in for a rainy day.
  3. Offer to pay their HOA/COA dues.  If you are selling a home or condo that is in a homeowners’ or condo association, then surely you remember how these buyers may feel when that bill comes due after being depleted of cash from down payment, closing costs, moving expenses and personalization (updates, upgrades, decorating, etc). Buyers may put pencil to paper and realize that this incentive alone could get them interested in at least considering your home or condo over your neighbor’s. Obviously, you can offer to pay this fee for a period of time you negotiate – be it 6 months, a year or longer.
  4. Brokers are people too.  Smart sellers using the expert services  of real estate professionals typically understand that agents are people too, and that incentives can also move some agents to make sure your property gets shown often.  Offering to pay an extra commission as an incentive to buyer brokers also helps get your home sold. Consider that, most buyers who are ready, willing and able to make the ultimate commitment (well…after marriage), to buy a home are usually represented by a broker.  After all, buyers typically do not pay for the broker’s services and they use them for their expertise and for guidance between contract to post-closing. Since buyer brokers have to sort through dozens, sometimes hundreds of listings to decide which ones to show a buyer, it stands to reason that these brokers may be a key buffer between you and a buyer and that incentives may get them to present your home to their potential client. If the broker sees they will get pay 1% or 2% more in the chance their buyer likes your home, they will make absolutely sure to show your home first – and to as many buyers looking for your type of home they come in contact with. This, in combination with the right price and property condition, helps improve your “traffic” (or exposure), because Buyer-brokers will be sure to include your home in the list of homes they will show to all their qualified buyers.

Remember, your home must be competitively priced, must be kept in “show condition’ every time it is shown and in today’s market, you must also consider “incentives” to get buyers through your door. This increase in traffic will increase the probability of getting an offer – even multiple offers, ensuring a faster sale of your home than your neighbor’s, often at a higher price (in today’s market – property values are still fragile. Not selling today, may mean selling for less tomorrow).

Finally, none of these ideas will cost you a dime before closing, and though they may reduce your proceeds at closing, incentives will help ensure you “move-on” with your life and begin to look forward to new opportunities you will now be able to pursue and enjoy sooner – without the looming and persistent effect of a home that won’t sell.

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Your comments and opinion welcomed

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