6 Incentives to Attract Buyers to Your Listings

Flashy buyer incentives may entice some buyers, but buyers are more likely to close a sale with perks that save them money..

Here are the six most common buyer incentives in today's market:

1. Reduce the price. The price is something that is a common currency — it appeals to everybody.
2. Pay points. One point is 1 percent of the loan amount, charged as prepaid interest. Sellers can pay these points on behalf of the buyer, so for the first year or two, the buyer has a lower mortgage payment.
3. Assist with the down payment. First-time buyers without enough money for a down payment appreciate this kind of assistance.
4. Pay closing costs. Closing costs generally add up to somewhere between 2 percent and 7 percent of the loan value, according to Freddie Mac. Buyers who are stretching to make a down payment like this type of help.
5. Add a home warranty. A residential service contract is some insurance that the buyer won’t encounter high repair costs in the first year or two of home ownership.
6. Pay home owner association fees. Paying these kinds of predictable maintenance costs at the beginning can be a nice welcome to the buyer when money will be tight.