Attention Seller’s Ever heard of
Buyer Incentives for Maui Real Estate?
Price is key, but extras and perks also might catch a buyer’s attention
RE:Buyer Incentives for Maui Real Estate
1. Reducing the price
A price reduction might be the most common buyer incentive, and often it is the one that is looked at first. Be it central Kahului, Wailuku, or West Maui Lahaina Area, or South Maui, Kihei, Wailea, areas, price is what matters today. The price is something that is a common currency — it appeals to everybody. Be it a mainland investor, a local family, foreign investor from Japan or Canada. If a buyer has in her mind that she’ll pay $800,000 for a home and the seller won’t budge from $950,000, “$5,000 in closing costs and a plasma TV ain’t going to get the house sold. But those extra little perks can grab the attention of a buyer; it also might inspire a commitment from someone on the fence between two similarly priced properties. What Howard Dinits usually recommends before you reduce the price … think about what you can do with the same dollars in an incentive to entice a buyer.
2. Paying points
Sellers can offer to pay mortgage points for a buyer, an incentive I tend to use in today’s market, when rising interest rates are at the front of a buyer’s mind. One point is 1% of the loan amount, charged as prepaid interest. For example, instead of having an interest rate at, say, 5.5%, a seller might be able to pay points so that the rate is at 4.5% for the life of the loan. When a buyer sees a lower interest rate or monthly payment, that’s something they can relate to. I often sell homes based on the payment. For instance can your family afford $2,100 a month? The setup makes sense for a buyer who has furnishings to buy for the new place; it also can make for an easier monthly-payment transition for families that are upsizing or are getting out of a rental situation.
3. Down-payment aid
For some first time buyers, the hardest part of entering the ranks of home ownership is the down payment. This is also an area where a seller can help. It’s mostly first-time, VA, FHA, home buyers interested in this kind of assistance because they’re often the ones lacking in sufficient funds to complete the deal. It gets people into homeownership and out of the rental money pit. The disadvantage is that the buyer is financing that additional amount, because a seller would likely come down in the price of the home if a portion weren’t dedicated to down-payment assistance.
4. Help with closing costs
Closing costs include items ranging from taxes to title insurance and can add up, ranging between 2% and 7% of the loan value, according to Freddie Mac. So many buyers, especially those stretching to make a down payment, will be interested in having a seller help out. In Maui, buyers in every price range have been asking that these costs be covered. They ask for it because they know that they’ll get it.
5. Adding a home warranty
A residential service contract is sometimes thrown in as an incentive because it acts as insurance for a home’s systems, often including plumbing, heating and cooling. At a cost of a few hundred dollars, some real-estate agents consider it an inexpensive add-on that affords a buyer a little extra peace of mind. That peace of mind can be especially welcome during the first year in a house. Others take a different view, and say there’s often confusion over what elements are covered. If a problem is considered a pre-existing condition, assistance could be limited. It makes the sale go smoother and often a buyer won’t bug you to fix everything.
6. The little things
Other perks will appeal to buyers, too, ranging from the common to the unique. Payment of homeowner association fees, typically associated with condo developments are paid for 1 year. Also sellers with pools might also offer a year’s worth of upkeep for it, a welcome help to those worried about the maintenance of the backyard attraction. Or maybe if a corner of the home was designed to fit a baby grand piano, leaving that instrument behind entices a buyer to go through with the deal.
Now you know some of the ways to entice a buyer.
Have a home to list?
Call Howard Dinits R(B) at Dinits Realty
at 808-874-0600 or 808-896-1593 to list your home.
Buying a home or condo? Call Howard Dinits and I’ll score you a fabulous home with all of the right incentives. 808-874-0600
Read Rajan K.‘s review of Howard Dinits – Dinits Realty on Yelp
Read Amanda V.‘s review of Howard Dinits – Dinits Realty on Yelp
Read Diane T.‘s review of Howard Dinits – Dinits Realty on Yelp
Read _y0d8_ ..‘s review of Howard Dinits – Dinits Realty on Yelp
Read Patrick S.‘s review of Howard Dinits – Dinits Realty on Yelp
Read Elizabeth V.‘s review of Howard Dinits – Dinits Realty on Yelp
Read Clayton W.‘s review of Howard Dinits – Dinits Realty on Yelp
Read Chris M.‘s review of Howard Dinits – Dinits Realty on Yelp
Selling a Condo In Kihei?
Click here to List With Howard
Want to receive email alerts with listings of condos or homes for sale?
Sign up today
at https://idx.easymauirealestate.com/idx/search/emailupdatesignup
Subscribe to your Maui Daily News at
http://mauilifestylenews.com/
You can now Search
Maui Real Estate For Sale by Price