When Selling Your Home in a Down Economy, It Pays to be Creative

Now that the tax credit for first-time home buyers has ended, sellers are having to get even more creative when marketing their homes. Fortunately there are several things a seller can do to make his or her home more attractive to buyers without having to lower the selling price.

Offer to pay some of the buyer's closing costs. Many home buyers are short on cash or would rather use that money to furnish or improve their new home. If you are willing to pay some of the buyer's mortgage points or other closing costs, that could give your home an edge. Most lenders will place a limit on how much a seller can contribute to a buyer's closing costs, based on how much the buyer is putting down and other specifics of the loan. A common range for this allowance is 3% - 6% but a buyer should check with his or her lender before negotiating. One of the many options is a 3-2-1 buy down. In the 3-2-1 buy down, the rate drops three points from the market rate in the first year, by two points in the second year and by one in the third. This will substantially lower the buyers payments in the first 3 years of the loan, making it attractive to young buyers and professionals just getting their feet wet.

Consider purchasing a home warranty. Home warranties are relatively affordable, especially on newer homes, and can give buyers the peace of mind they need when making such a major purchase. Including a home warranty as part of your home purchase could be just what is needed to set your home apart.

Market to military buyers. The home buyers tax credit has expired for most home buyers, but not for military families. Military home buyers have an extra year, until April 20, 2011, to close on a home and be eligible for the credit. If your home is near a military installation or is in other ways attractive to military home buyers, make sure to take advantage of this benefit. Fort Wayne is the home to many military personal, including those in the Fort Wayne Air National Guard and Army Reserves.

Offer financing. If you're in a position to make the loan yourself and that is something that is palatable to you, offer owner financing to your potential buyers. This could even include a rent to own arrangement, which might be especially appealing to first-time buyers. Depending upon location, this solution would be ideal for SW Fort Wayne as many of the recent General Motors (GM) transfers aren't in a position to presently purchase a home, but are seeking land contracts until either credit has been built up or their other home has sold.

Make sure your home is in move-in ready condition. If you're marketing your home in a tough economy, then you are likely in competition with lots of other sellers in your price range. One way to make your home stand out is to make sure it is in move-in condition, with good staging and lots of curb appeal. To accomplish this work at cleaning, removing clutter, and painting your home. These are all low-cost activities which can make a big difference in how your home shows.

Fort Wayne home owners, it would be a pleasure to assist in the marketing and selling of your home. Please don't hesitate to contact me for a free market analysis of your home and to discuss some creative ways to ensure a quick sale.