Selling a home is not nearly as easy as it was just a year ago. Houses were flying off the shelf with historically low interest rates. With increasing insurance premiums and interest rates double what they were a year ago, houses are taking longer to seller and we have transitioned from a sellers market to a buyers market. Home sellers can offer a variety of incentives to entice buyers and make their property more appealing. Some of the most common incentives include:
- Closing cost assistance: Offering to pay a portion of the buyer’s closing costs can make the home purchase more affordable for the buyer. At the end of the day it’s all a numbers game. The less potential buyers will have to come out of pocket to buy a home will certainly encourage more interest in a property.
- Home warranties: Offering a home warranty can give the buyer peace of mind by covering the cost of repairs or replacements of certain systems or appliances.
- Flexible closing dates: Allowing the buyer to choose a closing date that works best for their schedule can make the buying process smoother and more convenient.
- Furnishings or decor: Including furniture, decor, or other household items in the sale of the home can make the property more attractive to buyers.
- Repairs and upgrades: Offering to make necessary repairs or upgrades to the property prior to closing can make the home more appealing to buyers.
- Interest rate buydowns: Offering to provide a temporary reduction in the interest rate on a mortgage loan can make the home more affordable for the buyer. In a financing agreement known as a “interest rate buydown,” the lender or builder temporarily lowers the interest rate on a mortgage loan. As a result, the borrower pays less each month for the first few years of the loan, making the house more affordable. Usually, the builder, lender, or government will make a one-time payment or provide an ongoing subsidy to finance the buydown. The interest rate is reduced for a specified period of time before returning to the standard market rate. An interest rate buydown is intended to encourage home purchases, especially in a slow market that has a large number of unsold homes.
The last handful of years have no doubt been a sellers market but that has quickly changed. Even though inventory is still low, higher interest rates and higher insurance premiums have left many would be buyers sitting on the sidelines. These are a few ways that sellers can incentivize these would-be buyers to get back in the game.
If you have questions about a property you are thinking about selling, or just questions in general, visit us at www.nolabuyshouses.com or give us a call at 504 264 1407