Car as Buyer's Incentive?

[malatu]

I have a recently remodeled older starter home on the market. As a buyer's incentive, I'm considering offering a 1998 Toyota Avalon (119,000 miles, good condition). Do you think this kind of incentive would be worthwhile? Any thoughts?

[metaylor9]

In short, no. What is a real estate agent going to do with that? If you want to offer an incentive, just offer a higher commission or a cash bonus.

[malatu]

Maybe I misunderstood your reply. The car used as an incentive would be for the home buyers not the listing agent. Sorry if I did.

[metaylor9]

Sorry, I thought you meant for the buyer's agent. However, I still think a 10 year old car with over 100K miles is no incentive to anyone.

[malatu]

How would a newer, let's say 1-2 years old, with low mileage be as an incentive, e.g., Honda Civic, Toyota Corolla etc with low mileage be as an incentive.

My thoughts are this. This particular home I'm selling is a starter home. A new home buyer who is strapped with two car payments could rid themselves of one of those car payments. In turn, this could help them qualify for a mortgage, as well as increase their monthly cash flow helping them pay the monthly payments. Assuming I'm willing to absorb the cost of a vehicle, what do you think about a relatively new car as a buyer's incentive?

Thanks for you input.

[RyanRE]

I don't think that is a good idea either. It sounds more like you are trying to dump off your old car than give an incentive.

[malatu]

How would I make it sound like I wasn't trying to get rid of an old car (Actually, I'm not. I would be purchasing this car from a dealer). I'm just thinking how car crazy our society is that offering a car as a buyer's incentive would make a lot of "noise" in the market. And I've just known so many young people who are strapped with car payments that prevent them from qualifying for a mortgage or who simply won't think about a home because of their car payments.

Maybe it's just a "hair brained idea".

[RyanRE]

I definitely wouldn't buy a car to give away. One of the biggest problems with including a car in the sale of a house is that a car is considered to be "personal property" not "real property". Lenders can only lend money on "real" property, so including a car (or any other personal property item) is a lending violation. Although it does happen, it is a BIG red flag to see personal property included in the sale of real property.

Sorry for the "used car" comment. I wasn't trying to be mean, I was just giving the prospective of a buyer.

[malatu]

Sorry for the "used car" comment. I wasn't trying to be mean, I was just giving the prospective of a buyer.[/QUOTE]


No offense taken whatsoever. Thanks for the reply, I appreciate your insight!

[RyanRE]

You are welcome