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Dos and Don'ts of Homebuyer Incentives

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By: G. M. Filisko Published: September 01, 2010

Homebuyer incentives can be smart marketing or a waste of money. Find out when and how to use them.

Selling a home can be a stressful process, even if you’re using the best real estate agents from the Ed Dale Team. However, including a homebuyer incentive might make the process run a little smoother but you need to be sure you’re sending the right message to buyers when you throw in a homebuyer incentive to encourage them to purchase your home. When you’re selling your home, the idea of adding a sweetener to the transaction-whether it’s a decorating allowance, a home warranty, or a big-screen TV-can be a smart use of marketing funds. To ensure it’s not a big waste, follow these dos and don’ts:

Do use homebuyer incentives to set your home apart from close competition. If all the sale properties in your neighborhood have the same patio, furnishing yours with luxury teak garden furniture and a stainless steel BBQ that stay with the buyers will make your home stand out.

Do compensate for flaws with a homebuyer incentive. If your kitchen sports outdated floral wallpaper, a $3,000 decorating allowance may help buyers cope. If your furnace is aging, a home warranty may remove the buyers’ concern that they’ll have to pay thousands of dollars to replace it right after the closing. Furthermore, if your furnace is in a particularly bad way, you might want to consider reaching out to a specialist heating company for advice regarding any potential repairs that can be carried out. To learn more, visit web site of an HVAC expert in your area.

Don’t assume homebuyer incentives are legal. Your state may ban homebuyer incentives, or its laws may be maddeningly confusing about when the practice is legal and not. Check with your real estate agent and attorney before you offer a homebuyer incentive. When it comes to the litigation of selling your home, you should take a good look at attorney bios to make sure you can find one that will advise you on all aspects of selling.