Before You Begin…
…ask yourself, “Will this project enhance my life?” If the answer is yes, then consider these three factors to determine whether the project will enhance your financial situation as well.
Finish any unfinished rooms or convert any convertible rooms, such as the basement or a recreational room. Not only does this give an increased amount of usable space, but it can also be used as a sale point, since these are expenses that the buyer won’t have to incur. Offer a free media room. With deals, you can
probably have one installed for around $5,000. Media rooms are something many house shoppers see as a neat luxury, and could be the difference between someone going for your house or someone else’s.
You can make the mortgage on your house more desirable by buying down the interest-rate. This is something fairly easy to offer someone, and it certainly makes it harder for someone to take an offer with someone else where they have to pay a higher interest rate. Rather than offering a cash-specific incentive,
you can offer something like a vacation. Again, this makes your offer stand out from other offers. Offer seller financing. This is actually not that difficult to do if you can make the deal work, and can actually end up earning you some money. Talk to your realtor about the possibilities.
Offer to pay their HOA fees for a year. This is a practical buyer benefit. If someone is carefully looking at their budget, then not having to include these fees in their monthly expenses can be a big deal. Offer to pay off some of their debt. If this is done as part of the loan program, then it could lead to the buyer qualifying for
a larger loan, or a better interest rate. If just a side agreement, then again, it could mean lower monthly payments, which can be extremely important to the buyer. Finally, you can always offer to pay the closing costs. These tend to be something that is a big hit to buyers’ pocketbooks, and is something people don’t adequately budget for when shopping for a new house.
Unfortunately, other than the few aesthetically appealing things people can do to spruce up their house, real incentives tend not to be cheap, but they can mean the difference from having to drop your asking price by quite a few thousand, or actually getting what you want! The key to choosing which incentive to go for is to think about what incentive works best for you, and then think about what kind of audience you are playing to.