How to attract buyers without cutting your price: 5 creative ways
And the one move most sellers are missing.
Every buyer who walks through your home is running two numbers in their head. What would the monthly payment be? And how much cash would they need at closing?
That holds in a fast market and a slow one. Right now, a lot of buyers are feeling squeezed on both. Nationally, there are 63% more sellers than buyers, the widest gap Redfin has recorded since 2013.
When a home is sitting, most sellers reach for the same tool. They cut the price. The problem is, a price cut barely moves either of those two numbers.
Nearly half of sellers are already giving buyers money. Most wait too long to offer it.
In August, 44.7% of home sales included a seller concession, usually $10,000 to $20,000 toward the buyer's costs.
Most sellers wait until a buyer asks for help, usually after the inspection, when the money is just what it takes to keep the deal alive.
Some do worse. In August, 15.8% of sales included both a price cut and a concession. Those sellers dropped the price to attract a buyer, then paid again to close. They paid twice.
Builders work the other way. They put the incentive in front of buyers from day one, before anyone has to ask.
You can do the same. Here are five ways to attract buyers without cutting your price.
Cover closing costs
Cash is what stops most buyers
The problem. The typical household has about $8,000 in the bank, according to the Federal Reserve. First-time buyers put 10% down, according to NAR. Add closing costs, and the home slips out of reach.
The fix. Offer a $10,000 credit toward closing costs. The buyer brings $10,000 less.
The math. A $10,000 price cut saves them about $63 a month, and less than $1,000 at closing.
Ask your agent what closing costs typically run on a home like yours.
Buy down the rate
Builders lead with a lower monthly payment
The problem. Builders are advertising rates around 3.92%, according to Realtor.com. The typical rate is about 6.95%, according to Freddie Mac. If there is new construction near you, your buyer may have already seen one of those flyers.
The fix. Use part of your incentive to buy down the buyer's rate, for a year or two or for the life of the loan.
Keep in mind. You will not match a builder's rate. They sell in volume, and many own the lender.
Ask a lender what $10,000 would do to a buyer's rate on a home like yours. Get the quote before you commit to a number.
Share the inspection up front
1 in 7 deals falls apart. Inspections are a top reason.
The problem. About 1 in 7 contracts fell through in July, and Redfin points to inspections as a top reason.
The fix. Most sellers wait for the buyer's inspector to surface the problems. Inspect before you list instead. Fix what it finds, price for it, or share the report with buyers up front. In a faster market, a clean report can also help you choose between offers.
Keep in mind. Anything it finds may need to be disclosed. Talk to your agent first.
Get an inspection quote before you list.
Stage what matters
Your first showing happens online
The problem. Buyers see your photos before they see your home. Agents rank photos as the most important part of a listing.
The fix. You do not need to stage the whole home. Focus on the three rooms buyers' agents say matter most. 83% of buyers' agents say staging helps buyers picture a home as theirs, according to NAR.
Walk through those three rooms as if you were seeing them for the first time. Clear the surfaces, handle the small repairs, and book a professional photographer.
Let buyers choose
The same $10,000 can do three different jobs
The problem. You cannot know which buyer will show up. Short on cash, nervous about the payment, or focused on price.
The fix. Offer a set amount, and let each buyer decide how to use it.
Keep in mind. The same dollars lower the cash at closing or the monthly payment, not both.
Curious how this would work for your home? (617) 721-0961
Before you cut your price, find out what is actually stopping buyers.
Sometimes it is cash. Sometimes it is the payment, the inspection or the photos.
Want a selling strategy for your home?
Let's talk for 15 minutes. I will walk you through which of these ideas fit your home, what each one would cost, and when to use them.
Think it is too early? That is usually the best time to start the conversation.
Juan Murray · RE/MAX Real Estate Center · (617) 721-0961
Examples are for illustration only and are not a loan offer or rate quote. Payment estimates assume a 30-year fixed loan at the rate shown and include principal and interest only. Taxes, insurance, mortgage insurance and HOA dues are not included. Seller contributions are subject to loan program limits, typically 3% to 9% of the price for conventional loans depending on the down payment, and cannot be used toward the down payment (Fannie Mae Selling Guide). Talk to a licensed lender about your options.