Try practical incentives to catch a homebuyer's attention

NEW YORK – July 17, 2007 – Real estate professionals note that practical incentives that focus on the home price and monthly mortgage payment are more likely to entice buyers than material perks such as fancy televisions.

They recommend that sellers lower their asking prices, offer down payment or closing-cost assistance, or purchase home warranties to attract buyers. Sellers also might want to consider paying mortgage points – each equivalent to 1 percent of the mortgage amount – to make the transaction more affordable during the initial years of ownership.

They can advertise incentives right away to generate more interest in their listing, or they can offer incentives only if the property does not sell or as a means of sweetening the deal during negotiations.

Source: MarketWatch (07/15/07) Hoak, Amy

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