There are lots of factors that go into trying to get your house sold. When competing against other homes in your price range sometimes it can help to offer incentives for buyers. It can be a great way to convince buyers to choose your home over others in the market. There are several options for choosing incentives:
Paying Points
Offering to pay some or all of the origination points for the buyer can be a huge savings. These fees, charged by lenders, are equal to one percent of the total loan amount and typically ranges from zero to three points, depending on the interest rate.
Buying Down the Interest Rates
With interest rates at historic lows, this may not be a widely used incentive. But it is possible to buy a lower interest rate by paying additional points in the beginning. Offering to pay down the interest rate will help your home seem more attractive to cost-conscious buyers.
Home Warranty
A home warranty can be added protection against costly upgrades and fixes. The buyer will have additional peace of mind knowing that major appliances and core systems are covered by a warranty. Warranties are usually only a few hundred dollars.
Covering Closing Costs
Buyers these days may be required to put more cash down on the home they purchase. That means that offering to pay closing costs could be a big help. It will save them several thousand dollars and may be the reason why they choose your home over others.
Money for Upgrades
If your home needs new carpet or appliances you may want to consider giving the buyer cash for these. They’ll enjoy being able to pick out the products they want and not having to pay for them.