What Seller Incentives Entice Buyers the Most in Today's Real Estate Market?
In today’s real estate market here in the Santa Barbara area, sellers can find themselves in a serious situation with no offers in site from buyers. If you’re
trying to sell your home, are confident in your realtor and you have priced your home very well, but still find your home struggling to get offers...adding Buyer Incentives might prove to be a road to success.
- Interest rate buy-down. Paying points towards the new loan that a buyer will be getting can go a long way. This is a cash payment to the lender that simply will reduce the interest rate for the buyer and thus strike right at the heart of most buyer's concerns when buying a home...$$$. Depending on the loan amount, buying a half point to a point here in Santa Barbara will usually range around $2-6,000 depending on the loan amount. Seller-paid rate buy-downs not only save buyers money on their monthly payment over the entire lifetime of their loan, but sometimes these seller-paid points can be tax deductible.
- Credit at closing. For many buyers these days, getting a loan is the biggest obstacle and struggle...not finding the right home. After securing the loan and potentially depleting reserves for many buyers just to come up with the down payment, there is not much $$ left over for some basic upgrades such as painting, new flooring etc. Offering a credit to the buyer upon close for such items goes a long way not in just the pocket book, but the overall gesture can help secure a buyer that is on the borderline.
- HOA dues credit. If you are selling a home that is part of a homeowners’ association (HOA) that charges monthly dues, alleviating a new buyer of this payment for a timeframe for around a year can do wonders with a buyer's psyche. There is a huge laundry list of costs for new home buyers as far as mortgage payments, property taxes, insurance etc. Alleviating one of these such as a year of paid HOA dues again helps not just in the pocket book, but also because of the gesture. Depending on the unit, here in Santa Barbara most HOA dues fall somewhere in the $250 to $450 per month. Higher end condo units with more pools, facilities or prime locations tend to be more in the $500-750 per month range.
Search: The Santa Barbara Area MLS
For information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our area, please don’t hesitate to contact Kevin Schmidtchen at Berkshire Hathaway.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.