In a slow real estate market you really have to create some buyer incentives to produce results. No I don't mean the typical "lower your price" until someone finally comes to the table, I am talking about something that gives perceived value beyond the price reduction. How about an incentive that "keeps on giving?"
Lets face it in a slow market a seller is generally forced to lower the price but there are many ways to do that with a better result. A return of the "rate buy down" is a good technique to draw in the potential buyer if they are choosing between your home or another one. It really all comes down to the best deal and you have to be the best deal maker today.
Another option that is certainly going to give the potential buyer the most for his money is for the seller to pay the first six months mortgage payment. It can be less than reducing the sales price but it is perceived by the potential buyer as added value to the transaction. Just imagine NO mortgage payment for six months.
Most home buyers have so much they want to do to their new home but after the escrow is closed many of these ideas are put on hold. I think this added value approach to the transaction will benefit both the seller and the buyer because the home is sold in a shorter period of time and the buyer will be able to do some of the remodeling projects shortly after moving in.
As a Certified Mortgage Specialist I bring added value to the transaction because I can assist the Realtor or FSBO in creating an incentive package that will draw the potential buyer to the property. Structuring a loan that is beneficial to the seller and buyer is important any time but in this tough real estate market it can make or break the sale.
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