Incentives? (feedback, 6%, sale, price)

[houseinme]

We live in Southern Maine and have a great historic home for sale. The house is relatively large (2800 sq. ft), has great flow, a pretty lot, is situated in a very nice neighborhood and has a separate 2 story post and beam barn. We do not live there now so clutter is not an issue. We have the home tastefully staged. In the past year we've put on a new roof and had the first floor hardwood floors redone. We've done several other improvements as well and the house is "updated" (meaning there is no crazy wallpaper, out of date appliances etc.). The market here is VERY slow and we've had no offers since listing the house in November. With a baby coming in August we are eager to sell this spring and are thinking about offering incentives. My question is this: As a buyer what incentive would be most attractive? We are thinking about offering free home heating oil AND free gas for a year (we would cap it and do this through pre-paid vouchers). Alternatively we could offer to pay taxes for a year. Or throw in something less practical like a trip or a shopping spree at a furniture store. We were trying to appeal to the practical worries of what I think are on a lot of people's mind with the oil and gas but I am open to any/all suggestions! Thanks in advance!

[houseinme]

Sorry - I should have also mentioned that we are priced VERY competitively for the area.

[CouponJack]

You want the blunt truth?

If you have no offers since you put it up for sale in November, then you are grossly overpriced. You have to get away from thinking your home is worth more than you think it is....

The only thing buyers want to hear is a lower price. Not gimmicks you are proposing.

Lower your price plain and simple until you start getting legitimate offers from qualified buyers.

[Janecj]

You will have more luck lowering a home price than offering incentives. They are gimmicks that just don't work. If I have a buyer that likes your home, they will buy it .. not because you are offering heating and oil for a year.. but because it meets their needs. They prefer to take the $$ off the price of the home. Offering closing costs would be a better incentive..buy down of interest rate, etc. anything to help them get into a home, especially if they are cash poor.

[tamitrail]

I've read a post just like this on another board and everyone said the same thing. Incentives aren't going to bring in buyers...only a rock bottom price. Personally, I would also like closing costs.

[houseinme]

Thank you for the advise! We are already lower than the competition per all of the CMAs we've had pulled but it sounds as if we need to go even lower to get the house moved. We're at the break even point right now but it looks like we'll need to take a loss if we want to sell now (we don't want to wait it out with the baby coming this summer). We live in a very rural area and there just isn't any movement here at all. A whopping 5 houses sold in our area between December 1st 07 and February 1st 08. With only 2-3 houses selling a month we need to stand out which is why I was trying to speak to the things I know are on peoples minds - gas and oil. I thought it might seem more tangible than a lower asking price. I appreciate the feedback and will keep my fingers crossed that going lower will bring in an offer! Thanks again.

[Nancy-NJ-NY-ME?]

Do you have your house listed with a Realtor? Or are you still going the FSBO route?

[pghquest]

Originally Posted by tamitrail

I've read a post just like this on another board and everyone said the same thing. Incentives aren't going to bring in buyers...only a rock bottom price. Personally, I would also like closing costs.

Closing costs is exactly how I'm marketing my home for sale. With me offering 6% seller concession, it means a buyer will be able to put less down on my home instead of the house next door.

[rrufast]

Incentives are not meant to turn a non buyer into a buyer... they are merely tools to add 'icing' to the cake.

My idea would be to lower your price... and offer the incentive of paying property taxes for the year, or heating oil (capped at xx $$) for anyone who closes on the home by a given date... IF you even wanted to do the incentive... and I might even do a hold back on that until you had an actual offer... but that's just my take...

Good luck in whatever you decide to do.

[CouponJack]

Originally Posted by rrufast

Incentives are not meant to turn a non buyer into a buyer... they are merely tools to add 'icing' to the cake.

My idea would be to lower your price... and offer the incentive of paying property taxes for the year, or heating oil (capped at xx $$) for anyone who closes on the home by a given date... IF you even wanted to do the incentive... and I might even do a hold back on that until you had an actual offer... but that's just my take...

Good luck in whatever you decide to do.

Whether its paying closing costs, or throwing in a Plasma TV, you are still putting "lipstick on a pig".


Let me ask you a simple question. Why is it so hard for sellers to just lower their price?