Selling your Cape Coral home doesn't have to be a confusing and frustrating process. There is a right way and a wrong way to put your home on the market. Unfortunately, many sellers try it the wrong way first.
Before we give you the details on buyer incentives, let's quickly go over the reasons why it is absolutely vital to put your best foot forward right out of the starting gate.
Psychology of a Home Sale
There are plenty of ways to sell your home the wrong way. A short list would include:
- Putting your property on the market before repairs or updates have been made.
- Pricing your home too high, thinking you can always lower it later.
- Listing your home as a FSBO just to test the waters.
Those are just a few possible scenarios. Why are they wrong? I'm glad you asked. In order to understand the psychology of a home sale, you need to see it through the eyes of the potential buyer. Here's the break down.
As soon as your Cape Coral property hits the market and is available on the MLS, the clock starts ticking. The first two to three weeks from the day it is listed is your 'sweet spot.' That's when your property will get the most online views, the most attention from other agents, and has the best selling potential. Now, let's say your property is overpriced or you haven't updated that 1984 kitchen, "just because you wanted to see if it would sell the way it is." While you think you are testing the waters, you are actually losing valuable time before your property falls into the "red flag" category.
After a couple of months on the market without any offers, new potential buyers won't view your home with the same excitement they did when it was first listed. Once you become an aged listing the speculation begins. Buyers wonder why your home hasn't sold. After all, if it was such a good deal, why didn't anyone else think so? The longer your home sits on the market while you are testing your theories, the less selling strength it has.
Buyer Incentives that Work
So, what's a seller to do? Do you have to undercut everyone else's price just to compete in today's market? No! Here are three buyer incentives that offer a win/win situation. You'll still enjoy a fair selling price, and you're potential buyer will have that extra reason to choose your home above the competition.
- Interest Rate Buy-Down - The budget conscious home buyer will take an interest rate buy-down as a huge incentive. When the seller offers to pay discount points to the lender to lock in a lower interest rate, this lowers the buyer's monthly payment, and the points are generally tax deductible as well. Offering this buyer incentive is a powerful way to put your Cape Coral home at the top of a potential buyer's list.
- HOA Credit - Selling your Cape Coral condo? Homeowner's association fees can be a lot to get used to, especially for first time condo buyers. Writing that monthly HOA check may be no big deal to you, but you'd be surprised at how often a prospective buyer will walk due to these monthly fees. This, of course, is the perfect opportunity to put your condo above similar units by offering to cover the HOA dues for even six months.
- Closing Cost Credit - Coming up with the down payment often stretches a home buyer to their limit. Closing costs can run anywhere from 3 to 6 percent of the loan that the buyer has to come up with in cash. A smart seller can attract buyers who are right at that tipping point of their budget by offering to pay a percentage of the home's sale price to defray the buyer's closing costs. Your listing agent can help you determine how much of a credit you can afford to offer and how to present it in the listing in order to attract the most prospects.
These are just three simple strategies to put your Cape Coral property ahead of the other listings from day one. By sitting down with your agent and coming up with a plan of action right for your situation, you won't have to worry about your property sitting on the market for months without any offers.
The vital key to remember is the fact that the clock starts ticking the day your home is listed. Put yourself above the other Cape Coral listings by having an aggressive selling approach from the beginning.
For more information on listing and selling your Cape Coral property, don't hesitate to give us a call. With decades of experience right here in Cape Coral, we know what buyers are looking for.