Dos and Don’ts of Homebuyer Incentives - By: G. M. Filisko

Dos and Don’ts of Homebuyer Incentives

By: G. M. Filisko

Published: September 1, 2010

Homebuyer incentives can be smart marketing or a waste of money. Find out when and how to use them.

When you’re selling your home, the idea of adding a sweetener to the transaction—whether it’s a decorating allowance, a home warranty, or a big-screen TV—can be a smart use of marketing funds. To ensure it’s not a big waste, follow these dos and don’ts:
Do use homebuyer incentives to set your home apart from close competition. If all the sale properties in your neighborhood have the same patio, furnishing yours with a luxury patio set and stainless steel BBQ that stay with the buyers will make your home stand out.

Do compensate for flaws with a homebuyer incentive. If your kitchen sports outdated floral wallpaper, a $3,000 decorating allowance may help buyers cope. If your furnace is aging, a home warranty may remove the buyers’ concern that they’ll have to pay thousands of dollars to replace it right after the closing.

Don’t assume homebuyer incentives are legal. Your state may ban homebuyer incentives, or its laws may be maddeningly confusing about when the practice is legal and not. Check with your real estate agent and attorney before you offer a homebuyer incentive.

Don’t think buyers won’t see the motivation behind a homebuyer incentive. Offering a homebuyer incentive may make you seem desperate. That may lead suspicious buyers to wonder what hidden flaws exist in your home that would force you to throw a freebie at them to get it sold. It could also lead buyers to factor in your apparent anxiety and make a lowball offer.

Don’t use a homebuyer incentive to mask a too-high price. A buyer may think your expensive homebuyer incentive—like a high-end TV or a luxury car—is a gimmick to avoid lowering your sale price. Many top real estate agents will tell you to list your home at a more competitive price instead of offering a homebuyer incentive. A property that’s priced a hair below its true value will attract not only buyers but also buyers’ agents, who’ll  be giddy to show their clients a home that’s a good value and will sell quickly.

If you’re convinced a homebuyer incentive will do the trick, choose one that adds value or neutralizes a flaw in your home. Addressing buyers’ concerns about your home will always be more effective than offering buyers an expensive toy.

More from HouseLogic

Setting the right home price

Using an appraisal to set your home price

Choosing the right offer on your home

Other web resources

More on homebuyer incentives
G.M. Filisko is an attorney and award-winning writer who gritted her teeth and chose a huge price decrease over an incentive to sell a languishing property—and is glad she did. A regular contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

 “Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®."

 

Buying a Short Sale - Short Sales sometimes fail to appraise

The risk of a low appraisal is always a concern - even when you know the price on the contract is strong.  Maybe it is just the uncertainty of the home buying and financing process.

A low appraisal is especially a risk in a declining market.

In a short sale the decision to approve or not in the past has taken so long it is possible the price offered may in fact be above the market at acceptance an appraisal.

Fannie Mae and Freddie Mac will be implementing rules effective June 2012 that will require a decision within  30 days (60 days if negotiating with a mortgage insurer is involved).  This may speed the process along and help keep the appraisal in line with the market.

For now, let me see where today's appraisal goes!  And if a short sale fails to appraise there are options to consider. 

Expired Listings in Brevard County Florida - Why Your Home Did Not Sell!

If your Brevard County, Florida real estate listing has expired – again – take the time to consider why?

There was a time when I did not even go after expired listings.

I reconsidered that approach and now try to explain to “expired” sellers how an excessively high number of days on the market adversely impacts their efforts to sell their home.

I have spoken to some sellers who think if they price too low their home will sell too quickly…..not the case.

I try to explain to how new to the market sellers look at expired listings establishing their list price.

Sagging Around the Middle – No, It is Not my Waistline This Time!

Sagging from stress...the sag about the middle. Those were the words used by a home inspector describe an outside deck on a property he had inspected.

Getting a job done correctly is the only way to do it.  In the end, re-work is expensive but not as expensive as an injury or lawsuit!

As a real estate agent in Brevard County Florida I have seen the results of do-it-yourself-ers gone wild!   If you are considering an addition to your home, get the permits and inspections done. If you need a contractor, hire one.

Home improvements without the the necessary knowledge and permits, are not really improvements - just problems that will have to be dealt with later if you try to sell!

Gary Waters, Florida licensed real estate agent, Bucci Realty, Rockledge Florida working exclusively with Century 21 Baytree Realty on a referral basis.  Call me at 321-693-3850 or email me.

Please read my blog Florida Homes for Sale and Observations of a Viera Florida Real Estate Agent for information on buying and selling real estate in Brevard County, Florida.

Real Estate Listings Expire Because….

As a real estate agent in Brevard County, Florida I rarely ever went after an expired real estate listing.  Why?

First of all, a real estate listing expires for one reason – the property did not sell! Not funny, ehh?  Most sellers will agree!

The real reason a listing has expired may be as a result of a single issue or, more often, a combination of several reasons.  Some of these may include...

1. Listing Period Abbreviated.  I know some real estate agents who take listings for 45 days. The seller is not obligated long term however the real estate agent usually comes back for an extension. 
2. Lack of a marketing plan.  It is all about exposure. If the price is right and the real estate agent uses the right tools, an offer should come in a reasonable time.  If the price is right yet the traffic is mission, think ineffective marketing! 
3. Priced incorrectly.  It does come down to price. Price must be consistent with the competition and property condition.

If your Viera or Suntree Florida listing is about to expire, ask me why.  I will gladly  tell you what I think. I am not going to bad mouth your real estate agent (after all, he or she could be your child...no you wouldn't!).

I have had listings that just did not work out. I loved my clients and respected them a great deal but things just did not click.  Sometimes that is the case with others.

Call me at 321-693-3850 and lets talk. Or, just drop me an email.  Gary Waters, Florida licensed real estate agent, Bucci Realty, Rockledge Florida working exclusively with Century 21 Baytree Realty.

Additional information may be found by visiting the web sites below:

Florida Homes for Sale
Observations from a Viera Florida Real Estate Agent
Brevard County Florida Real Estate Information
Moving to Brevard County Florida
Florida Homes For Sale - Revised

Foreclosure or Short Sale should not mean the end of the world!

Who does not know someone who has gone through foreclosure or had to sell a house through the short sale method? It is common these days in the Florida real estate market!

This real estate market has put people in some difficult spots. Lenders have not always been receptive - some still are not - when it comes to working with owners!

I have read recommendations by some that landlords and owners totally reject prospective tenants who have encountered final hardships.

That, in my opinion, is the wrong move.

Not all folks who have lost homes to foreclosure or through short sale - dare I say very few - have done so as a result of intentional disregard of obligations!

The bottom line is that there are people involved - not just some piece of concrete. I remember going in a foreclosure house once and seeing, still taped to the kitchen cabinet, a child's drawing that said "Happy Easter!" To this day I pray that child has many "Happy Easters!"

If you are considering selling your Brevard County, Florida house as a short sale to prevent foreclosure, call me or email me. I would like to assist in any way I can. I have folks who would also like to help.

Gary Waters, Florida licensed real estate agent, Bucci Realty, Rockledge, Florida, working exclusively with Century 21 Baytree Realty. Call me at 321-692-3850 or email agent@moving2brevard.com.

Read my blog Florida Homes for Sale for more tips on buying and selling real estate in Brevard County Florida.

Finding a Brevard County Florida Real Estate Agent

It is not all about me. Let me repeat - it is not all about me!

When you are looking for a real estate agent to assist you with the marketing of your home or the purchase of a new or second home, you are not looking for someone who is wrapped up in them self.

Rather, you are looking for someone who has the priority in focus - you!

You have needs, desires, wants that need to be addressed when relocating. You need an agent who knows the area and who will listen to you. Let me know what I can do to assist you in Brevard County, Florida.

It is for you that real estate agents exist!

Contact me if I can help you marketing your house or condo or searching for the next one! Gary Waters, Florida licensed real estate agent, Bucci Realty, Rockledge Florida working exclusively with the Realtors of Century 21 Baytree Realty. Email me at agent@moving2brevard.com or call me directly at 321-693-3850.

Please read my blogs:

Florida Homes for Sale
Observations from a Viera Florida Real Estate Agent
Brevard County Florida Real Estate Information
Moving to Brevard County Florida
Brevard County Multiple Listings
Moving to Brevard