What incentives would encourage a quick home sale in this market?

[LoveBWVVBR]

We are fortunate enough to have placed the winning bid on our bank-owned dream home and we close in about 2 weeks! However, that means that we need to sell our current home in a down market. We live in coastal FL. Houses in our price range are selling here and many of them are the less-desirable short-sale situation.

The downside to our home is that we have no pool. We have priced the home to reflect this and we are getting plenty of showings, but the same thing comes up...no pool. People say that they'd rather buy a more $$ house with a pool even if the house itself is not as nice. Everyone so far has said that our home shows beautifully and is well-priced, though.

Today we changed the buyer-agent half of the commission to 4% (from the standard 3%). In addition to that, are there incentives that we can offer that will move this house over the competition? Would seller-paid closing costs work? We're not opposed to dropping the price, but it's priced very competitively already according to our agent and all of the agents who have viewed it so far. Anyways, we just don't want to own 2 houses! One last thing...if it matters, we own our home in cash and can do whatever we want price-wise and incentive-wise as a result. It's not a short sale or anything like that and there is no mortgage on it whatsoever. Thank you for any suggestions!!

ETA - Before anyone suggests it, we really don't want to rent this house out even if it would be a profitable endeavor. I watched my dad go through some awful stuff when he was a landlord and I decided that I never wanted to be one as a result.

 

[secretpantssam]

When I was buying, I was very happy to hear if a seller offered to pay part of or all closing costs. That's one huge downside to short sales, you have to pay all closing costs, so I think it will help you stand out.

 

[LoveBWVVBR]

When I was buying, I was very happy to hear if a seller offered to pay part of or all closing costs. That's one huge downside to short sales, you have to pay all closing costs, so I think it will help you stand out.

That's exactly what I was thinking! Particularly in our price point (under 200K), I think that buyers want to hear that the closing costs are taken care of.

Do you think that this would be more effective than offering the buyer's agent a higher commission? At the moment, I'd only do one or the other.

Our house isn't a short sale and that is rare around here (FL).

 

[secretpantssam]

Personally I would think the closing costs would be more of a push for buyers...if they know they'll save some money at the table, they'll be happy!

 

[Eeyore1928]

what area is the house in? We are trying to sell our current home for a (hopefully) Florida move. We are always looking for a deal!

 

[LoveBWVVBR]

what area is the house in? We are trying to sell our current home for a (hopefully) Florida move. We are always looking for a deal!

It's in Brevard County on the barrier island...the beach is 2 blocks away (about a 3 minute walk). The schools are great, the house is gorgeous, we have a large lot (by FL standards), and of course we don't have a pool, LOL!! One could easily be added, though

FWIW, I don't know if you are looking at specific areas of FL, but Brevard really is awesome. We relocated here 5 years ago and we wouldn't live anywhere else!

 

[Grumpy's Gal]

CASH! I am not kidding. I saw on tv a couple that included $5,000 cold hard cash to the person who bought their home. I think people don't worry about a higher mortgage because they can pay it off over time but to have $5,000 in cash, they can pay bills or whatever.

 

[JoiseyMom]

You can do what my former next door neighbor did, and sell it for 60k below fair market value, killing the market for any of the other neighbors wanting to sell!!

 

[LoveBWVVBR]

You can do what my former next door neighbor did, and sell it for 60k below fair market value, killing the market for any of the other neighbors wanting to sell!!

Oh, I'm already doing that...well, not by 60K, but by like 30K! Sorry that your neighbor did that, though

 

[LoveBWVVBR]

CASH! I am not kidding. I saw on tv a couple that included $5,000 cold hard cash to the person who bought their home. I think people don't worry about a higher mortgage because they can pay it off over time but to have $5,000 in cash, they can pay bills or whatever.

So, just offer 5K in cash back instead of saying "seller will pay 3% towards closing costs"? It would be about a wash either way...which sounds more appealing?

 

[JoiseyMom]

Oh, I'm already doing that...well, not by 60K, but by like 30K! Sorry that your neighbor did that, though

Well, if I was selling now I would like NO. But they were the original owners and paid like 90k for the house 30 years ago...so they could afford to do what they did. They are moving to a retirement development and wanted out. The new neighbors got the deal of the century...LOL. Now it looks like they are gutting a house that didn't need gutting...but what are you gonna do. I feel bad for the house 2 doors down that wants to sell. I hope he isn't in a rush!!

If your house had a pool would it sell? Does it make sense/pay to put in a pool and raise the selling price?? I mean if I loved a house and all I needed was a pool, and they price was good compared to houses with a pool, I could put in a pool.

 

[LoveBWVVBR]

Well, if I was selling now I would like NO. But they were the original owners and paid like 90k for the house 30 years ago...so they could afford to do what they did. They are moving to a retirement development and wanted out. The new neighbors got the deal of the century...LOL. Now it looks like they are gutting a house that didn't need gutting...but what are you gonna do. I feel bad for the house 2 doors down that wants to sell. I hope he isn't in a rush!!

If your house had a pool would it sell? Does it make sense/pay to put in a pool and raise the selling price?? I mean if I loved a house and all I needed was a pool, and they price was good compared to houses with a pool, I could put in a pool.

No, it would make more sense to sell it for 60K under the most recent sale than it would to pay 30-50K to put in a pool in the hopes that it would sell the house. We're already priced at 30K under the most recent comps in our neighborhood (closed in June, so really recent). Also, I wouldn't want to own the house for the several more months that it would take to complete a pool and I def. wouldn't want to sit on an unoccupied house w/a pool out back, KWIM?

 

[JoiseyMom]

No, it would make more sense to sell it for 60K under the most recent sale than it would to pay 30-50K to put in a pool in the hopes that it would sell the house. We're already priced at 30K under the most recent comps in our neighborhood (closed in June, so really recent). Also, I wouldn't want to own the house for the several more months that it would take to complete a pool and I def. wouldn't want to sit on an unoccupied house w/a pool out back, KWIM?

Yup, makes sense! Good luck. Have you tried burying that statue of a saint some have suggested. Not sure which saint it is though.

 

[FLAngie]

Hi I am in Brevard too. I would agree that paying closing cost might help the most. The market is unbelievably slow. That is great that you are getting so many showings! A friend of mine has two houses for sale (one where she lives in beautiful neighborhood, and a rental in a starter home community) and has had very few showings on either. No pool at either house.

 

[LoveBWVVBR]

Hi I am in Brevard too. I would agree that paying closing cost might help the most. The market is unbelievably slow. That is great that you are getting so many showings! A friend of mine has two houses for sale (one where she lives in beautiful neighborhood, and a rental in a starter home community) and has had very few showings on either. No pool at either house.

Houses are def. selling in my town, but buyers don't seem to be in a hurry to make a decision. There were 4 offers on the one we're buying in 1 day, though We were sweating that one!

I'm really leaning towards offering 3% of the sale price towards closing costs. I'm trying to talk to DH about it right now but he's not giving me a lot of feedback. I guess I'll probably just go ahead and do it.

If your friend isn't getting showings then she might not be priced right and/or she's in one of the beautiful neighborhoods that just got redistricted into an awful school. My agent has some homes for sale that she thinks are priced right but that as I a buyer I can honestly say are WAY overpriced. She wanted us to price higher but I insisted that the market isn't holding up and I was right.

 

[gracie1]

Closing costs would be a plus, or offer an incentive for a pool (do you have room for a pool?) Not sure how much the pool costs, but instead of offering closing costs, put that amount on the contract as an incentive for the pool.

 

[LoveBWVVBR]

Closing costs would be a plus, or offer an incentive for a pool (do you have room for a pool?) Not sure how much the pool costs, but instead of offering closing costs, put that amount on the contract as an incentive for the pool.

We have a huge lot and plenty of room for a pool. A pool costs like 30K minimum, though

 

[FLAngie]

Wow, 4 offers in one day! Must be nice for the sellers. My friend is a realtor and her house is priced pretty close to the others in our neighborhood. I know that most of the sellers here are upside down in value. Thankfully we were not redistricted and have an A school. The rental I think might be a little high for that area.

I have to ask. Are you in the Cocoa/Sat. beach area?

 

[LoveBWVVBR]

Wow, 4 offers in one day! Must be nice for the sellers. My friend is a realtor and her house is priced pretty close to the others in our neighborhood. I know that most of the sellers here are upside down in value. Thankfully we were not redistricted and have an A school. The rental I think might be a little high for that area.

I have to ask. Are you in the Cocoa/Sat. beach area?

Indialantic

Um, the seller of our new house was actually the bank, and what we bought it for was probably not so nice in their book because the now-foreclosed owners paid twice that amount in '06 We about fainted when this house came on the market for what the bank priced it at. It's always been one of our dream houses!

What town is your friend selling in? There are some neighborhoods in Satellite and IHB that just make me scratch my head with their current pricing.

 

[clutter]

Oh, I'm already doing that...well, not by 60K, but by like 30K! Sorry that your neighbor did that, though

Honestly, you're probably better off raising your price 30k and adding the pool. There was a home in our neighborhood that had an unfinished, rather than a finished, basement. Homes with finished basements in good shape (this one was) generally sell in a week or less. This one sat for 2 months. And the seller took a haircut, way more than the price to finish the basement. Buyers just don't want to deal with doing the work, according to my realtor. So if you're listing 30k under comps because a pool costs 30k, you may be over priced.