Yesterday Realty Times published good article about dealing with the slower market.
M. Anthony Carr contends that a credit from the seller to the buyer at close, packaged well, can go along way toward closing the deal, more so than a price reduction. He bases his assertion on the notion that a price reduction only offers a nominal monthly reduction in payments for a buyer, but cash back at close offers immediate gratification for the buyers, and frees the buyers to think about the ways they can use the extras cash. Mr. Carr contends that the sellers can save money by offering less as cash back than they might have offered in the form of a price reduction.
Bottom line is this: in a buyers’ market, sellers need to look from the eyes of the buyer at what is being offered, and make sure they have the most attractive package in their market range if they really want to sell their home. This would include price, condition and terms.
Written by Maureen Francis
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{ 2 comments… read them below or add one }
Toby 12.15.06 at 5:24 pm
Great idea, but I’m not sure how you sell it.
The buyers I’m working with right now are looking not for one or the other — but BOTH — and hopefully they will relax soon.
Hope you’ve had a great Friday — and will have an even better weekend!
Toby
Maureen Francis 12.16.06 at 9:38 am
Toby, I am not sure why you are going into my akismet spam filter! Glad I saved this one.
The only buyers I have looking for credits right now actually need them for financing purposes. But I do know what you are talking about. I actually usually suggest the price reduction to sellers to make sure that we are in the range that potential buyers are looking in the first place.