Comments on: Will Offering Incentives Make a Difference in Getting My Home Sold? http://www.whydidntmyhomesell.com/2009/02/04/will-offering-incentives-make-a-difference-in-getting-my-home-sold/ Tips and Tools to Help You Get Your Home Sold Sat, 13 Mar 2010 01:51:49 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Troy Martin http://www.whydidntmyhomesell.com/2009/02/04/will-offering-incentives-make-a-difference-in-getting-my-home-sold/comment-page-1/#comment-90 Troy Martin Thu, 26 Feb 2009 03:43:46 +0000 http://www.whydidntmyhomesell.com/?p=127#comment-90 Great article.... If you are selling your home you NEED to have an open mind. Any buyer out there is wanting to get a good deal. So often a buyer and seller will negotiate back and forth over $10,000 in purchase price when in the end what really is the benefit for the buyer. Maybe thier monthly payments went down a whopping $20-30 per month... not earth shattering by any means. An Incentive towards closing costs, if used properly, can benefit the buyer much more. Conventional financing allows for a credit of 3% towards closing costs paid by the seller and FHA allows 6%... VA is pretty amazing... heck the seller can pay all closing costs and to sweeten the deal they could pay off credit card debts that the buyer has.... lots of options with VA. Here's an example of a seller incentive: On a $200,000 purchase the seller could offer the buyer $6000 (3%) towards thier closing costs on a conventional loan or $12,000 (6%) on FHA.... This money could be used to keep the buyers emergency fund intact after closing, most people forget about how important this really is, or could be used to buy down the interest rate in a big way. I always tell clients that the best time to pay points on thier loan is when they are purchasing a home and when someone else is paying for it! :) Great article Linsay! Great article…. If you are selling your home you NEED to have an open mind. Any buyer out there is wanting to get a good deal. So often a buyer and seller will negotiate back and forth over $10,000 in purchase price when in the end what really is the benefit for the buyer. Maybe thier monthly payments went down a whopping $20-30 per month… not earth shattering by any means. An Incentive towards closing costs, if used properly, can benefit the buyer much more. Conventional financing allows for a credit of 3% towards closing costs paid by the seller and FHA allows 6%… VA is pretty amazing… heck the seller can pay all closing costs and to sweeten the deal they could pay off credit card debts that the buyer has…. lots of options with VA.

Here’s an example of a seller incentive: On a $200,000 purchase the seller could offer the buyer $6000 (3%) towards thier closing costs on a conventional loan or $12,000 (6%) on FHA…. This money could be used to keep the buyers emergency fund intact after closing, most people forget about how important this really is, or could be used to buy down the interest rate in a big way. I always tell clients that the best time to pay points on thier loan is when they are purchasing a home and when someone else is paying for it! :)

Great article Linsay!

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