Wednesday, October 30, 2019 / by Heather Schelling
No luck selling your home? Getting anxious to move? Tired of buyers saying it’s just not the right home for them? Give them a little extra motivation by offering a home warranty or another way to help them with some of their expenses. Even though this is a very strong seller’s market, you may need to bend a little to get your home sold.
A common idea is to purchase a home warranty for the buyer as a way of helping them with any unexpected home repair and/or maintenance items within the first year of ownership. The warranty offers coverage of the systems and functions within the four walls of the home. Think furnace, hot water heater, and maybe even appliances if requested. In addition to buyers’ coverage, the policy can also be upgraded for a nominal fee that will offer protection for the seller during the escrow phase.
You could also offer to buy down the buyer’s interest rate or maybe even consider paying for some of the buyer’s loan costs. Either way, any contribution could be deducted from the proceeds of the sale of your property.
If you continue to get feedback that your home is priced too high, you may want to take that to heart. Inventory is very low right now and buyers are feeling the squeeze, but they’re still very savvy. They aren’t typically overpaying for a home. They’re getting used to terms like multiple offers and will likely move along if they don’t feel they can make an offer unless it’s at or above asking price. Overpricing is a huge risk. The moment you publicize a price drop, buyers immediately think there’s something wrong with the home. When they walk in the door, they’re looking for issues vs imagining how they could live there. Reducing the price should be the last resort.
And I’m sure it goes without saying…hire a professional! If you’re trying to sell on your own without the guidance of a real estate agent, you’re likely to leave money on the table. Ninety percent of the time, the extra fee to cover the Realtor’s commission is realized by the increase in the sales price due to maximum market exposure. Buyers also assume that the list price should be below market if it’s a For Sale By Owner (FSBO) sale.
For more ideas, look for quick and effective cosmetic repairs that will make your home stand out amongst the competition. More on that in another blog!
Until next time!
Heather Schelling, Realtor®