Well I'm starting to see more and more of these homes coming on the market. So what are these sellers doing to sell their ugly homes?
You got it! Wrapping a steak around the homes neck, so buyers and agents will even look at them.
I've seen it all now, I think? From free satellite for a year, 1 year's HOA paid, willing to pay for a 3-2-1 buy down, and even the pay the buyers closing costs up to 4%. These are just the steaks for the buyers.
The buyer's agents are getting free trips, cars and even 5% BAC, but we still hear that it is the price that sells he home. Are we still sure of that anymore? It could be, to some buyer, just the amount of the monthly payments could make it interesting.
So do you use a steak to get buyers to look at your listings?
Todd Clark - broker
Kastings & Associates
(503)524-9494
Todd@IFoundYourNewHome.com
http://www.ifoundyournewhome.com/
Nope, no steak but I do promote price reductions and sizzle. I think these incentives are silly, most are motivated to sell anyway and if they are doing what they are supposed to do they will do what's best for the buyer, not the selling agent.
Ray Perry
I Sell Lake County
MailTo:Ray@RayPerry.com
http://rayperry.com/
707-277-9255 Ext 101 Office
707-277-7840 Fax
707-245-8376 Cell
I personally do not even consider the "bonuses" unless that is what the client wants to purchase. I am even bad about finding out what the listing agent listed the house for percentage wise until closing (and sometimes I am sadly suprised!), HOWEVER, I would't be against a receiving a bonus, but I cannot with a good conscience push a client in one way or the other for my personal advantage. Good post though because that is what the industry is coming to extra incentives. Instead, they should simply be realistic and make the price right and it'll sell.
Bob or Caroline - I agree, price should be what sells the house. But, I just talked to an agent that won't even show a home if the co-op is less than 2.5%. I disagree and look for homes first, then after the offer is put in I find out what the agent is offering.
Andrew - Sometimes the bonuses to the buyers may sway them in to buying the property, even though it may not be really the best choice for them.
Marlene - Yes it is sad that agents do look at that before showing a home.
Todd or Danielle - It is usually the listing agent that is thinking outside the box and suggesting these offers to buyers and other agents. I just heard a FSBO had a Jag parked in the garage and they say on their sign that if you buy this house you get the Jag, since I'm not paying a Realtor his fee.
Ray - Some of these incentives do actually help some first time home buyers that don't have closing costs or need some help in the first couple years. But, I do agree the offers to the other agents are stupid.
Sondra - I'm glad you another one that doesn't really care what the bonuses are. We are here to find the perfect home for our clients and if that means getting paid less everyonce in awhile, so be it. I did have one difficult client that I had a buyers agreement with that said he would pay me 3% of the home purchase price minus the BAC. (YES HE WAS THAT DIFFICULT!) He knew he was difficult and signed it and paid me the extra money when we found his perfect home that happened to only pay 2%.
Derrick - I agree with pricing a home correctly, but you do see how offering to pay a buyers closing costs right in the listing may attract a few more potential buyers. The offers the the selling agents is the one I have a little problem with.
Todd...
We are seeing something similar only it's coming from Builder's.
Not only are they throwing out the enticement tactics they have hired people to stand on street corners and wave down the passing cars.
I guess just planting a sign on Saturdays ain't working for them :)
TLW...ROAR!