Closing Cost Concession May Attract Homebuyers. Should You Offer to Pay Homebuyers’ Closing Fees? Here’s the good news: Homes are selling faster today, with the National Association of Realtors® reporting that the sale of existing homes in July rose more than 17% from 2012. That, in sales results terminology, qualifies as a ‘spike!’ Better yet, homes are selling more quickly – TOM (Time on Market) shrank from 69 days to 42. And prices were rising: the national median sales price in July stood at $213,500, up 13.7% from 2012. But this is not to say that it’s easy to sell a home today. Homebuyers in are plenty savvy. They won’t overpay for a home, and if they don’t like your asking price or terms, they are ready to move on to the next one. But you might be able to increase your odds of attracting solid offers by front-loading a concession that’s important to today’s PV homebuyers: paying their closing costs. What homebuyers seem to be more keenly aware of is the incremental cost of closing a mortgage loan. According to a trustworthy survey of closing costs (from Bankrate), today the average buyer pays close to $2,400 in closing fees on a $200,000 loan. As a home seller, you have a natural resistance to cutting down your profit margin when closing a real estate deal. Yet this inventive kind of offer can bring more Paradise Valley homebuyers to your property. It could allow you to sell your home faster — possibly for a better price. The reason? Many homebuyers can afford to pay the slightly higher monthly mortgage payments that come with paying full listing price for a house. What might break the camel’s back is a pile of upfront cash. By offering to pay closing costs, you may supply the extra incentive that can, in the long run, work to your financial advantage. Especially if you need a quick sale because of a professional move or a financial incentive, the closing cost concession could dramatically reduce the number of days your home spends on market. If you’re thinking of selling your home this fall it’s something to consider. Also worth considering: calling me today! Easy to speak with, passionate about homes and I provide white glove service to my clients. Let me find your home a great new owner.
Posted on: Mon, 16 Sep 2013 16:44:53 +0000