Advice For A Shifting Real Estate Market- Do Incentives Work?

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Real Estate Broker/Owner with Bayou Properties
https://activerain.com/droplet/5gPm

Advice For A Shifting Real Estate Market- Do Incentives Work?

Homes For Sale In Louisiana

As we enter 2019, the real estate market is all over the news. Rising interest rates, climbing days on market, and more inventory are causing soon to be sellers tension. Alexandria La home sellers have historically offered incentives to help move properties. Let's take a look at how common incentives work (or don't) in the current climate...

1) Closing Costs Assistance-- Depending on the price point, seller assistance with closing costs is common. Depending on the lender, loan type, and price point closing costs and prepaids can run between 4,000-6,500 dollars. Of course everything is negotiable and every transaction is unique. In the past years I have seen transactions where sellers paid all, some, and even no closing costs.

2) Leaving Movables-- In Louisiana things like the refrigerator, washer/dryer, and non-built in microwave typically are not part of the purchase agreement. Of course most home buyers will need to turn around and buy each. I have used such movables in the past to help negotiate past home inspection repair requests. "Forget about those plumbing repairs, here is a refrigerator". Believe it or not that works on occasion.

3) Agent Incentives--To help separate the home from the crowd, Alexandria La home owners will sometimes offer a financial incentive to the buyer's agent. Any/all agent incentives should be disclosed to the buyer upfront. Locally this has fallen out of favor due to the way buyers shop. Twenty years back, a buyer would come to the agent for a list of homes. More often than not, today's buyer will come to THE AGENT with a list of homes to tour. Hence, reduces the effectiveness of the agent incentive.

So which incentive works best? As an Alexandria La real estate broker my advice is to skip incentives and make the asking price as attractive as possible. Pricing right should result in a market value offer sooner that incentives. Need a top Alexandria La real estate agent to represent you? Call Doug Rogers (318) 613-1994 today for your free CMA. Want to take a peek at the local competition? Go to Alexandria La Homes For Sale to see what's on the market today!

homes for sale in alexandria la

 

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Searching for a Top real estate agent in Alexandria Louisiana? Need help selling your Pineville, Louisiana home? Either way call Doug today!

Doug Rogers

Broker/Owner

Bayou Properties Realty LLC

 

Bayou Properties Realty LLC

301 Jackson Street, Suite 201

Alexandria La 71301

(318) 613-1994

 Equal opportunity housing. Doug Rogers is a licensed real estate broker in Louisiana

 

 

 

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Rainmaker
3,998,395
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, in Denver these incentives have not worked well.   Our market is shifting, and very well could see buyers asking for closing costs again, whether the Seller offers or not.   I don't look for the agent incentive, as if the buyer doesn't like the property, you won't see it anyway.  Usually you only see these on the tough properties to sell. 

Jan 10, 2019 09:14 AM #1
Rainmaker
132,894
Mike Baltierra
Rise Realty - Eastvale, CA
Full Service at Your Service Realtor-Eastvale CA

You made a great point about incentive. Just let the price be the incentive enough. On a few of my lower price listing we've include some appliances to help attract a first time home buyer. It helps but it's really the price and home that is the incentive alone to purchase.

Jan 10, 2019 01:49 PM #2
Rainmaker
2,932,014
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Of course, incentives work... but I'm not a big believer in agent incentives... they don't sell homes. At the end of the day the best incentive is a good asking price.

Jan 10, 2019 02:52 PM #3
Rainmaker
788,439
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

I agree, make it about the price, not price plus incentives.

Jan 19, 2019 11:40 AM #4
Rainmaker
2,849,025
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope 2019 is a great year for you.

Jan 21, 2019 03:57 AM #5
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