Has anyone ever done this type of creative incentive?

Cindy every incentive in the book has been tried one way or another.

With the builder/developers I deal with have tried them all and still do, they just get more creative that's all.

I have one builder that was throwing in a  in ground pool, some will pay one years mortgage payments, a shopping spree at Rooms To GO

Buy offering to pay 12 months lease payments on a car is nothing more then reduction in price and or a a cash rebate anyway.

Getting involved with someone who has a lease car to buy the and pay 12 months payments limits you to a buyer that has a  lease vehicle or is getting a lease vehicle.

Why not offer a cash buyers bonus of xyz $$ to get some traffic

The 3 Ps work all the time, Price.price and Price

"Price overcomes everything"

I have done a commission splits and have one coming up soon with a 8% commission, 5% buyer agent 3 listing and a 1% raise in home price to offset it a bit..

There should be a log home soon with  10% that will be 7% buyers 3% listing with a 1% raise in the home price.

I am just throwing things out there that has worked for me that's all.

Being that the Holiday season is upon us most northern  states close down for the winter season sort of speak.

Being in the sunbelt states helps us all year round, but I can tell you that this market is no day at the beach...in the sunbelt states either.

Vancepinion

I had a seller call me yesterday too. Yesterday was day 79 in her listing with me and she is frustated (me too) that we have had a higher than normal number of showings but no contract yet. She said she'd like to offer an incentive to the buyer, a decorating allowance at closing, and a $1000 each bonus to me and the buyer's Realtor if we close in November. She is a motivated seller.

Oh Cindy

I forgot your other part of the post

This should help you or anyone else who may not know about your tax questions and rebates ?? ok

http://tinyurl.com/yrmmwy

Vance

Yes, Incentives are allowed in most States. Check your state rules. Most common is a buy out on a rental lease. But that could be possible. And Vance, yes, cash incentives are good, but sometimes buyers need to be directed to their particular situation. The car industry has ruined the cash rebate thing, cause you know it is always taken off the price. So that may not always be the way to go. But to advertise, seller will pay off the remainder of your lease.......etc....could be a good way to go. And please remember, even for you Vance, it is the seller paying these things. Even if it is a rebate from you on commission the seller paid it. The home has to appraise for sales price.

What we were doing to get condo conversions sold to possible buyers that were tenants in a apartments we wound offer to buy out the remainder of the lease up to a year, along with other closings incentives work like a jewel, they were so happy to get out of the apartment living into something they owned..and the mortgage companies was like having Xmas giving away money at a drop of a hat..

The seller ultimately pays the commission no matter what the rebate is to the buyers agent , or sellers agent so that rebate represents a discount of the price of the home, so the buyers rebate was an investment  in that home to get it sold and lowered the price and is NOT taxed upon by the IRS because it was a deduction  price and not taxable and is an incentive from the IRS also.

I recently gave a $2,000 rebate on a 230k new home from Centex the buyer only paid 228K after rebate so I invested $2,000 in Centex homes INC to get the deal done.

Yes appraisal as always determines if the deal will fly  or not in any type of market and appraisers, mortgage cos are tight now because of double digit home prices in 04/05 and the mortgage mills  turning out mortgages to almost anyone, really got out of hand is what got us were we are today. :(   rebates or no rebates

Cash rebates work the best, it would be up to the buyer spend it anyway they want.

Vances Cash Rebate Heaven:)

"giving something back"

I am still amazed that people are still looking to give rebates and incentives.. To me it is the same as lowering the price of the home. I have been very realistic in my area about pricing homes and it has been working well. I will look at the home, according to the market, figure out "Todays" market price and deduct 1% to get the list price. We are chasing the market every month now and the sellers need to see this. I know my market has not been affected as much as others have, BUT we need to really educate the sellers on what is happening. At this rate, we are literally losing 1/2 - 1% of the market value every month.

If you go through your local MLS and plot the houses in closings from the beginning of the year you will see this. Used it as a graph to your sellers.

NJ isd a tough state to sell in because NO CASH REBATES Alowed. But I look at it as, why rebate, just reposition the list price to todays reality price.

Robert Stern said:

I am still amazed that people are still looking to give rebates and incentives..

To me it is the same as lowering the price of the home.

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Exactly Robert,

Rebates will be coming your way in NJ  soon

Vance

Hey Cindy,

Glad to see some of us are still trying to be creative. Any new spin to a price reduction can always help.  I do agree with Robert that giving an incentive is just like lowering the price, but the nice part is that depending how the incentive is offered it isn't a direct discount showing a lower price in MLS..... it is just a creative advertising method. So if a buyer comes along and wants a lower price......you still have room without being committed to an etched in stone price offer..........

The way I understand most "allowed" incentives as far as a mortgage or lender is concerned..........is that it can not exceed 6% of the sales price and generally can only go towards paying non recurring closing costs.  That being said there is a lot of flexibility from State to State and lender to lender.

One lender we deal with, Suntrust........is putting a new spin on a sales concession where they allow the seller to pay up to 6 future mortgage payments.........so maybe that would be a creative way to advertise your listing............

NO PAYMENT FOR 6 MOS...........then an clause at bottom outlining details............ck with Suntrust for your states details.

http://www.suntrustmortgage.com/

Good luck and hopefully one of the creative incentives helps move the listing or atleast generate some activity.........

Justin Stranere

RFW Realtors