Condo Selling 101

Try Buyer Incentives

Throwing in incentives when selling a condo to sweeten the deal is common in Buyers Markets and can effectively attract buyer interest in your listing. There are several types of incentives you can offer, but some are more enticing than others.

Buyers may be skeptical of non-monetary incentives, such as a free plasma screen TV or upgraded kitchen. Why wouldn't they want nice new granite counters and stainless steel appliances? It's not that they don't want the fancy features. But buyers may worry the cost is incorporated in the home price and they will end up paying for it after all. Whether this is the case or not, to avoid the issue altogether you can present transparent incentives that have a clear-cut financial worth.

One way to do this is by paying mortgage points for the buyer. A point is equal to 1% of the loan amount. Points are paid upfront to lower the interest rate on the mortgage and therefore reduce the monthly payments. If the condo seller offers to pay points, the buyer benefits monetarily with more affordable monthly mortgage payments. This is a true savings on the buyer's end.

Another alluring incentive is to pay the condo assessments or association fees for a period of time. Because you are selling a condo, these additional expenses are something buyers know they will have to factor into their monthly bills. But it might be a nice bonus for buyers to leave the fee out of the budget until a few moths or half a year down the road.

Closing costs add up to thousands of dollars and must be paid in-full at the time of closing. Offering to cover some or all of the closing costs is a common incentive used today that condo buyers find very enticing. You will have to hash out how much of the total expense you are willing to pay, but just the notion of a condo seller shelling out dough to help with the sum is enough to get buyers interested in your listing.

Consider assisting with the down payment. It can be tough for a buyer to get enough funds together to make a sizeable down payment. By offering a bit of assistance with this issue, you may open the door to more buyers. And the more buyers you have interested in your condo the better. Again, it is vital to determine the amount you are planning to spend on this form of incentive.

As a last resort in condo selling, you can reduce the price. Since you read Set a Listing Price [link to section] earlier, you know how to price your condo appropriately for the current market. Assuming you did not price your condo too high to begin with and you still aren't getting any bites, this may be the way to go. Price reductions take careful evaluation of the market and can be tricky to judge. It is recommended you consult with a professional real estate agent to define the best strategy and ideal reduced price point.