One often overlooked method of attracting buyers is to have the seller pay points-buy down the buyers rate. For the seller it is usually cheaper than lowering their asking price, and obviously lowering the price is not popular with sellers. For the buyer this is a huge incentive as getting a lower rate affects their payment for as long as they hold the loan. Buyers are also very rate conscious, and consider purchases relative to monthly payments (can I afford this payment). By buying down the rate, a seller can make the difference in affordability. Over the long term this can actually be more valuable than getting the property for a little less money. Also, in a psychological way, it is better for a seller to offer value to the buyer than to cut percieved property value. It is a gift to the potential buyer and sets the seller’s property apart from the competition, and as we all know there is alot of that! It’s a win win situation!!! Sellers can also offer incentives such as free cars, or anything else of value to attract attention to their property. In this market it’s important to cover all the bases and be creative.
