Ways to Sweeten the Deal
Kathy Riggs July 25th, 2010
It’s no secret that today’s real estate market is a buyer’s market. And if you are about to put your house on the market, or if the For Sale sign is already up, here are a few ways to sweeten the deal.
If a buyer has made an offer on your house you shouldn’t be surprised to find requests that will make it easier for the buyer to buyer to close on the transaction. Sellers need to keep an open mind about concessions that will lure a buyer away from another house and into theirs.
First, be open-minded about paying some of the closing costs. Not only do buyers need to bring anywhere from 5 to 20 percent of the sales price as a down payment, but there is another three to six percent called closing costs. These costs include, but are not limited to, loan origination fee, appraisals, credit reports and flood certification fee and a year of homeowners insurance paid in advance. I tell my buyers that if they are considering a $100,000 house, they will need approximately $103,000 to $106,000 to make and offer and walk away with the keys. If the seller agrees to pay some of the closing costs, the actual dollars are deducted from the seller’s gross proceeds at the closing table.
Second, have a pre-inspection or be receptive to making some repairs. I’ve seen many houses listed as “move in” condition that had $500 to $2,000 in needed repairs discovered through an inspection. Even after the price has been negotiated, a seller’s refusal to make necessary repairs will give a buyer a legitimate out. And if the buyer walks because the seller refuses to make repairs they leave the problems with the seller.
Finally, offer a home warranty or a cosmetic allowance. Home warranties give buyers a feeling a security and a cosmetic allowance offers the buyer a way to change colors or carpet. Cosmetic allowances also give the seller a method to ensure buyers get a more updated house with less money out of pocket.
Today’s market is definitely a buyer’s market. If your house is about to have a For Sale sign go up, discuss any or all of the above concessions with your Realtor. Remember everything is negotiable, and just a little sweetener may seal the deal.
On the Lighter Side…
Note to Landlord: I request your permission to remove my drawers in the kitchen.
SHAMELESS PLUG
I have the perfect property for a trendy or quaint dining establishment just waiting for a new owner. Property is in the middle block of a downtown section undergoing a rebirth. Neighborhing businesses include gift shops, hardware stores, specialty restaurants and a brewery. Call me at 252-939-2432 or email me at kriggs@kathyriggs.com for more information
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