What seller doesn’t dream of a market thick with buyers?
Or better yet, getting your price from a pre-approved buyer
willing to waive a home inspection and close at the seller's
convenience?
But that isn’t reality, especially in a market where
houses languish for months. Market forces are uncontrollable
and these can keep your house sitting, but a very frequent
reason houses fail to sell is because they're overpriced—and
your asking price certainly is controllable. After sprucing
up your house, your best strategy includes a realistic assessment
of your property’s value—and finding ways to entice
buyers beyond curb appeal.
Tactics to Speed Your Sale:
Strategy
Rationale
Pre-sale Inspection and Warranty
A thorough home inspection and a home warranty
reassures buyers that your property is ship-shape and
that certain repairs will be covered by insurance. Make
duplicates of these documents for buyers.
Decorating Allowance
If your buyer has different taste in décor,
offer an appropriate allowance (for re-carpeting, wallpapering,
or painting).
Lease Option
Lease options allow buyers to rent the property
for a period of time with an option to buy. A percentage
of the rent is set aside as the buyer's down payment,
while the remainder is used to cover your mortgage. Putting
at least 30 percent of the rent toward a down payment
will increase the likelihood of a sale.
Seller Financing
Seller financing is advantageous if you
have substantial equity in the property. Options include
buying down the mortgage rate, placing funds in escrow
to cover several months of mortgage payments, and carrying
a second mortgage to help a buyer cover a down payment.
Before offering financial assistance to a buyer, consult
your agent and an attorney and ensure that the buyer is
creditworthy.
Closing Costs
You can offer to cover nonrecurring closing
costs, such as prepaid interest charges or the first year
of property taxes. Paying points is an attractive incentive
that you can also use as a tax deduction. Most lenders
limit the amount of closing costs you can pay, but this
can make a difference for cash-short buyers.
