What Types Of Incentives Really Work For Selling A Home?
Which types of incentives can really help your property sell?
Bonuses and incentives can be powerful tools for selling properties faster, and encouraging multiple higher bids. How effective and profitable they are all depends on which you pick, and how they are offered.
There are several types of incentives; including bonuses to selling agents, concessions to buyers, and gifts and other offers. Even if you don’t plan on using all of these it pays to know what other competing sellers may be offering.
Bonuses to Agents
The truth is that many real estate agents will promote the properties which offer the most lucrative compensation. This is true whether they are listed in the MLS with a full-service broker, via a discount or for sale by owner service, or privately. Not all agents do this, but it’s probably more common than most realize. Bonuses typically aren’t visible to non-Realtors. Beyond the traditional commission, there may be bonuses to buyers’ agents who bring a deal within a certain amount of time, or secure a closing by a specified deadline. This could be a flat fee, or a percentage. It is not completely uncommon for this to be as high as 5-10% of the sales price.
Rebates & Seller Concessions
Another form of incentives are cash rebates and seller concessions. Rebates are sometimes offered to buyers by their agents to make the deal happen. Concessions are generally to help cover buyer closing costs or repairs and improvements. These can often be built in on top of the desired sales price. Just be careful of the legalities of these types of incentives and how they may impact any financing.
All types of incentives have been seen in the past. This has ranged from the promise of exotic vacations, to appliances, to luxury cars and more. Just make sure your incentives are a match. For example; it makes no sense to offer a Kia automobile as a bonus for someone buying a multimillion dollar home. A TV isn’t likely to sway someone buying an expensive luxury condo or income producing apartment building either. These incentives may not always pay big returns in direct monetary terms. However, they may help create buzz, increase visibility, and generate much-needed attention and more bids.
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