6 useful buyer incentives ideas you can use to sell your house fast

A gift offered as a useful buyer incentive

Let’s say you need to relocate and have to sell your house fast. However, you were told the current real estate market is unfavorable to sellers. 

You may be thinking of reducing your asking price, but that will mean losing a lot of money. You need that money to put your relocation plan into motion. What do you do?

You can use many smart marketing strategies to build a vast pool of buyers and sell fast. One of those strategies is offering a buyer incentive.

In a market where every house looks the same, offering an incentive will set your home apart. When you use the right incentives, buyers will swarm your house like bees on honey. This is why 34% of the home sellers offer incentives.

34% of home sellers offer incentives to help them sell fast

What is a buyer incentive?

Simply put – a buyer incentive is a perk offered by a home seller to their buyer. You may see it as a form of bonus or gift attached to a house to motivate buyers to buy it.

But you can’t just offer a buyer an incentive. There are rules to take note of before doing so.

The rules of giving home buyer incentives

So, what are the do’s and don’ts of giving home buyer incentives?

  • Be open to your buyer about the incentive

If you are offering the incentive to make up for the flaws in your home, be open about it. Don’t let the buyer find out by themselves during the home inspection as that may make them less interested in buying your house. Tell them everything up front. Your prospective buyers will surely appreciate your honesty and have more trust in you. 

  • Don’t offer an incentive to make up for an overvalued home

You should not overvalue your home and offer the buyer incentive to make up for the price increase. That is a wrong move because overvalued homes are less likely to attract buyers – regardless of the incentive attached to them. Instead, price your house right and add the incentive to stand out from other similar homes in your area.

  • Not all incentives are legal
Two piece of papers with

This information may be surprising to you, but some buyer incentives are illegal. However, the legality of an incentive depends on the state you reside in. Your state may ban specific incentives or have complicated laws concerning them while a neighbor state accepts that same incentive. 

To avoid getting into trouble, consult us at Bost Redevelopment before offering your buyer an incentive.

Proven buyer incentives to help you sell your house fast

1. Part-payment of closing costs 

As you may know, buyers routinely pay between 2% to 5% of the total purchase price as a closing cost. You may offer to pay part of these costs as an incentive. All you have to do is select a few of the fees you know you can afford. 

For example, cover the cost of the homeowner’s title insurance or loan fees. 

Offering to pay part of the closing costs will help you attract buyers, many of whom have little to spare after saving up for a down payment. It will come as a relief and may even motivate them to put out their best offer.

2. A home warranty 

Prospective home buyers, especially first-timers, are usually worried about the responsibility that comes with owning a home. Offering a home warranty will open your house to a wider pool of buyers because it makes them less nervous about taking the final step to homeownership.

You can offer a warranty on common home appliances like the HVAC system, refrigerator, and plumbing. If you already have a warranty on these items, you can simply transfer the ownership to them. 

The great thing about home warranties is that they are affordable for you and invaluable to prospective home buyers. 

(To learn more about offering home warranties, check: Why do home sellers need to have a home warranty plan?)

3. A seller financing deal

A seller financing deal in paper

Do you need to sell fast? Do you want to save your buyer, and by extension yourself, from the lender’s disappointment? Then you may want to consider seller financing as an incentive to attract buyers.

Seller financing is an agreement whereby the seller provides the mortgage loan to the buyer instead of a lender. It usually occurs when a buyer can’t meet loan requirements or when a seller needs to sell fast.

Besides helping to sell the home, seller financing will allow you to get more money for your home than a traditional sale. You get a stable passive income for a long time (usually 10 – 30 years). 

(To know more about seller financing, read: When is seller financing right for me?)

4. Credit for home repairs 

Another buyer incentive you should consider offering is repair credits. This type of incentive is beneficial if your house is a tough sell due to repair problems, especially those annoying and minor plumbing, roofing, and similar issues.

Offering home repairs credits will allow your prospective buyer to make repairs when and how they want. It will also ensure that they get the quality of repairs they are happy with.

Similarly, you can offer upgrade credits if your home lacks the up-to-date features buyers want. As with repairs, it relieves you of the responsibility of having to do it yourself. Most importantly, it gives your buyer the freedom to make upgrades based on their needs and preferences.

5. Buydown the interest rate

Homebuyers have the chance to buydown the interest rate that their lender offers them if it’s favorable. To do this, they have to pay a form of prepaid interest called mortgage discount points. As a home seller, you can offer to pay and lock down this interest rate for your buyer.

Offering this incentive relieves your buyer’s pressure of having to guess the day to lock in the interest rate. It lets them know that they can beat the general interest rate when they buy your house. Subsequently, they get to enjoy more significant savings over the loan lifespan.

6. Furniture and decorative elements

Furniture and decorative elements left behind as buyer incentive

Do you have any furniture and decorative elements you won’t be needing at your new place? Then, don’t dispose of them just yet. You may want to throw them in as incentives to sell your home.

Furnishing a new home is one of those headaches homebuyers wish they can avoid. Including these items as a bonus for the purchase of your home can be helpful to your buyer. Provided that these items are in good shape, buyers will appreciate them.

The best way to know the furniture and decorative elements your buyers may like is by paying attention to their interest during the showing. Look out for items and furniture they admire or talk about a lot. 

Let Bost Redevelopment sell your house for you!

Do you need help marketing your home and attracting the right buyers? We are here to help you. 

At Bost Redevelopment, we are experts at handling every home selling problem you may be facing. We would use our marketing expertise to ensure you get the best buyer for your home at the maximum value possible. Want to talk more about your options? Please leave us a message below with your contact information and let us know how we can help you.

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