strong real estate markets with many ready, willing, and able buyers
clamoring to purchase good houses, property priced near its market
value typically sells quickly. But when the tables are turned, and
sellers far outnumber buyers, even pleasure-pleasure-panic pricing
may not do the trick. If that's the case, you'll probably have to
offer buyers additional enticements to make a deal. In a buyers'
market, the key to success is using incentives that help put a sale
together rather than fancy gimmicks that besmirch your property
and make it harder to sell.
a really rotten market, you can sweeten the deal by offering buyers
money in the form of special financial concessions. One or more
of the following incentives may be the key to putting a deal together:
Credits: One effective financial inducement is offering
to pay a portion of your buyer's nonrecurring closing costs for
such expenses as loan origination fees, title insurance, and property
inspections. You may also graciously offer to pay for some or
all of the repairs found by the property inspections. These payments
are usually made as a credit from sellers to buyers.
financing: On the plus side, financing some or all of the
buyer's mortgage may get you a higher sale price, a faster sale,
an attractive return on your money, and possibly a deferment on
a portion of your capital gains tax. Doing seller financing, however,
ties up money you may need for the down payment on your new home.
Worse yet, if the buyer defaults on your loan, you must foreclose
on the mortgage to protect your money.
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