Homebuyer incentives can be a sensitive matter. There is a fine line between a genuine incentive and one that is motivated to sell quickly, sell overpriced or hide a potential flaw. Know the tips and tricks of how to properly use a homebuyer incentive.
Before you offer any homebuyer incentive, make sure it is are legal in your state or region. Many states have confusing laws regarding these incentives and others flat out ban homebuyer incentives. Ask your attorney or REALTOR® for guidelines and laws.
If the home you are selling is in a neighborhood where many of the homes are similar, then a homebuyer incentive could be something to set it apart. Examples include patio sets and/or quality landscaping or a landscaping allowance.
Acknowledging flaws and compensating for them also can be a homebuyer incentive. If you know your home needs new carpet or flooring, give a decorating allowance or dip the price just a bit.
Try to avoid overstating your incentive. If it is overwhelming or unusual, a potential buyer may become suspicious of what you are trying to hide. Even worse, they may see you as desperate to get rid of the home and lowball their offer.
Homebuyer incentives are also not to be used as an alternative to dropping the price. Potential buyers may rather keep the money for themselves and their own home buying budget High priced incentives, especially cash, could cause unintended appraisal and/or lending problems.