Are Home Buyer Incentives Right For You?

One way to get an edge on the competition when selling your home is to throw in a little something extra in the deal. In other words, a homebuyer incentive. May it’s decorating allowance, big screen TV, or a home warranty, or something else to sweeten the deal and attract buyers.

But you need to be sure you’re not wasting your money in the process. Here’s a few do’s and don’ts:

Do use homebuyer incentives to set your home apart from close competition

DO all the homes for sale in your neighborhood have similar patios? Furnish yours with a luxury patio set and perhaps a stainless steel BBQ that stay with the buyers.

Do compensate for flaws with a homebuyer incentive

If you have outdated décor and don’t want to redo it yourself, try throwing in a $3,000 decorating allowance. That way, the buyer and decorate to their own taste. Or if you have an aging AC or furnace, a home warranty may help alleviate concern over having to replace those after the sale.

Don’t think buyers won’t see the motivation behind a homebuyer incentive

Be careful not to throw in incentives that will make you look desperate. Buyers need to be careful, so they could suspect you’re hiding flaws in your home that you’re trying to compensate for. It could also lead buyers to factor in your apparent anxiety and make a lowball offer.

Don’t use a homebuyer incentive to mask a too-high price

A buyer may also think the incentive is being used to mask a high asking price. It’s better to list your home at a competitive price than to offer an incentive. A property that’s priced a hair below its true value will attract not only buyers but also buyers’ 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 homebuyer 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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