Feb 20, 2008 4:06 pm US/Eastern
Creative Ways Sellers Are Going After Home Buyers
Part 3 Of A Five-Part Series On The Real Estate Crisis In Massachusetts
BOSTON (WBZ) ―
It's no secret that trying to sell a home in Massachusetts is no picnic these days. The mortgage crisis has flooded the market with inventory and that means more sellers are all going after the same buyers.
Remax broker Steve Levine knows it's time to get creative. He's offering an all-expense paid trip to Hawaii to any broker who sells a brand new house in North Attleboro. "The owners lived here for just three months when their company transferred them," he said.
Not only did those owners have to leave in a hurry, they're also taking a bath on the house. At $699,000, it's listed well below what the couple paid during the pre-construction phase of the development. Levine says he's been through slumps before and these marketing gimmicks can make a big difference. "Since I started this program a week ago, my phone's been ringing off the hook".
Conrad Allen is another broker going out on a limb. He's actually offering a price guarantee to first time home buyers. "Buy my house for $204,000 and after the end of a two year period, if you want to move, I'll buy it back, no questions asked," he explained.
The average seller can't afford to be giving away trips to Hawaii or price guarantees, but there are things they can do to make their home stand out. Realtor Christina Tarpy says if your putting a house on the market, it has to look better than the competition. That's why she brings in a professional stager to help her owners get their homes into tip, top shape.
Tarpy took over a listing that had been on the market for more than six months. She had the owners paint over some very dark and very dated paneling and brought in some rented furniture. Within two days she had two offers. "It really does make a difference," she said.
Sellers can also offer to pay closing costs or even buy a point on their mortgage to help bring down the buyer's payments. Another strategy is to offer a home warranty. You promise to make repairs on anything that goes wrong with the house for one year.
Tarpy says in the end, sellers have to realize this is not the market where they can count on banking a huge profit on a house they've only lived in for a few years. But there is an upside. If you're moving, you're new house will be cheaper too.
Home Buyer's Toolkit, MA Assoc. of Realtors
Home Seller's Toolkit, MA Assoc. of Realtors
Preparing Your Home For Sale, MA Assoc. of Realtors
Traditional Mortgages, Understanding Your Options
Specialty Mortgages, Risks and Rewards
Join WBZ's Paula Ebben and David Wade for an online chat Thursday at 1 p.m. There will be a panel of real estate and mortgage industry experts on hand to answer your questions.
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