The Big Giveaway...Does It Work?

Many sellers wonder if offering incentives really works.

I have seen incentives for Buyers, Agents and a combination of both.  The reason for an incentive should be crystal clear....the seller wants to sell faster.

What works and what doesn't?

Pricing right in the beginning of your sale works best.  You get more traffic and more offers at a higher price!

That being said, what about offer to pay closing costs, taxes, carpeting, painting, association fees, new cars, trips and the list is a imaginative as you can be.

This week a client asked if we offered a trip to some exotic island would that lure buyers?  NOPE...they want a good deal not a trip.  Now before you send me email we are not talking about the EXCEPTION....we are talking about a marketing plan poised around a give-away.  Sure a few people might bite on a trip "IF" the home was the right home and they were going to buy it anyway!  Wrong home...NO SALE!

What about that carpet allowance?  It helps buyers if you need to update or replace your carpet...no sense in buying new carpet and having the buyers rip it out the day after close!  You have wasted money...on the other hand does nasty old carpet help you get more money?  NO.  So if you need to update your carpet select a neutral color, not coral blue!

What about closing costs?  Save your breath...if the buyer needs closing cost they are not bashful...they will ask!  What about offering to pay taxes for a year?  That would be nice...can you help me with closing costs too?  Again it might sound nice but buyers will ask for more anyway...so save your money...it isn't going to bring you more buyer's and usually cost you more because you offered.

Ok if that doesn't entice buyers how about painting?  If your home needs painting you should already have done that to get a higher price...again if it is the outside you want to have already painted...the inside, buyers willl do it themselves, in most cases.  Not a big motivator to buyers...yet having a shabby outside is a big turnoff to most buyers and will fetch you lower bids or worse, NO Bids!

Association fee may bring a few buyers but what it really does is focus on the association fees, it makes buyers wonder if the fees are higher than normal.

Now that shiny new car...first of all if you are offering a car your home is priced to high....and the car isn't going to change the fact that the buyer knows it's priced to high.

How about a trip to some exotic place?  Chances are the buyer won't be able to afford the plane fare and if they could they wouldn't enjoy themselves knowing they should have cashed in the trip to by carpet, paint, furniture or a yard!  The truth these incentives are not going to bring you a bunch of buyers...you might have a few exceptions but the reality is buyers know what they want and the head turning incentives only cost you money.

The best is yet to come....what about offering the buyers agent more commission....use greed to have the Realtor sway buyers to your property.  Here is the rub...if an agent does this and it can be proved they have broken their fiduciary responsibility to their client, the buyer.  That word fiduciary is another word for legal obligation.  It's not nice to break the rules an agents license could be gone for this infraction.  So if the agent is doing his or her job to begin with, your home is already on the "to see" list, because it meets the buyers needs.

One last thing, what works best?  Pricing Your Home RIGHT to Sell!

Hope this clears up a few misconception on incentives and what works best.  Buyers buy what fits their needs...always have and always will!

 

 Live in the Grand Rapids or West Michigan area, not under contract?  Like to sell or buy a home....give me a call.  It could save you thousands in your next real estate transaction.  Always confidential, Never Pressured.

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Local: 616-784-2360     Email: garywhite@FlexItRealty.com