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 look like? And how much cash would they need to bring to closing?
That holds true in a fast market and a slow one. Right now, a lot of buyers are feeling squeezed on both fronts. Nationally, there are 63% more sellers than buyers, the widest gap Redfin has recorded since 2013.
When a home isn't moving, most sellers reach for the same tool. They drop 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 hold off until a buyer asks for help, usually after the inspection, when the money is simply what it takes to keep the deal alive.
Some end up in a worse spot. In August, 15.8% of sales included both a price cut and a concession. Those sellers dropped their price to attract a buyer, then paid again to close. They paid twice.
Builders do things differently. They put the incentive front and center from day one, before anyone has to ask.
You can do exactly the same. Here are five creative 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's 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 won't 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 promise 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 turn up the issues. Inspect before you list instead. Fix what it finds, price accordingly, 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 ever see your home. Agents rank photos as the most important part of a listing.
The fix. You don't need to stage every room. Put your effort into 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're seeing them for the first time. Clear the surfaces, take care of the small things, and book a professional photographer.
Let buyers choose
The same $10,000 can do three different jobs
The problem. You can't know which buyer will walk through the door. Short on cash, nervous about the payment, or laser-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? (312) 219-5954
Before you cut your price, find out what's actually stopping buyers.
Sometimes it's cash. Sometimes it's the payment, the inspection or the photos.
Want a selling strategy built around your home?
Let's talk for 15 minutes. I'll walk you through which of these ideas fit your home, what each one would cost, and when to use them.
Think it's too early? That's usually the best time to get the conversation going.
Alison Aviles · eXp Realty · (312) 219-5954
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.