In a buyer's market, there are more homes available to fewer buyers. When you decide to sell your home in a buyer's market, be ready for lots of competition. There are many ways to make your home stand out from the crowd, including staging, updating and good marketing practices. Offering incentives to buyers is another method of enticement, making the purchase of your home more attractive and affordable than the home down the street. But make sure that whatever incentives you offer are done in accordance with lending laws.
Closing Costs
Closing costs are typically between 2 percent and 6 percent of the purchase price, which can add up. Title search and insurance, attorney fees and appraisal fees are some examples of closing costs. Offering to pay some of these can make a deal go through.
Price Reduction
If the buyer is having trouble with the down payment or closing costs, lowering the purchase price can be an incentive to continue with the transaction. Not only does this help the buyer immediately by making the home more affordable, but it also means he'll pay less in interest charges on the mortgage and in property taxes.
Home Warranty
A home warranty is especially attractive to the buyer of an older home. Home warranties cover most major systems, including heating, air-conditioning, water heater and electrical. You can purchase optional coverage for appliances, pools and other items. Purchasing a home warranty for the buyer of your home assures her that should something go wrong with one of these systems, she won't be forced to spend a lot of money for repairs. The average home warranty policy costs between $250 and $600.
