To become the authority in real estate and separate yourself from the crowd, you may want to try offering incentives to attract new clients or complete a sale. Incentives are small to large rewards or gifts, like travel miles, gift certificates, new TVs, gift cards, offering to pay a portion of moving costs, covering landscaping fees for a year, or anything else of value that helps to attract customers to you and your listing and get them to buy. They are not bribes in any way, shape, or form, but legitimate offerings of value-added products or services to entice customers to come and check out what you are offering, or provide a valued product or service for making a deal.
Incentives are the attraction but not necessarily the deal-maker though in many cases they can be. They get potential clients interested in what you have to offer. They get people in the door. The lure of the prize may be the catalyst for the sale and the larger the incentive, the better chance for the buyer to make the decision to buy.
One time we were stuck with a property that was simply not selling. We found out later it was because of an violent incident that had occurred several years back in that same street. So we had to become creative. We posted flyers everywhere with the property description, pictures and a hard-to-resisit incentive. We were offering a 50 inch brand new LED TV to the new buyer. We posted this same incentive on the MLS and in all marketing we had at the time. Well, surely enough we soon had a brave family who overlooked the violent incident! We made it a win-win for all and were able to move along with the next deal. So being creative and adding incentives can be the thing that can make a buyer on the fence decide to move forward.
There are several interesting incentives you can offer to get buyers in and persuade them over. For instance, you can pay a portion of their closing costs. Covering some or all of your buyer’s title insurance and title search fees, inspection fees, or homeowners’ insurance gives your buyer an initial relief of financial obligation that allows them to keep a bit more money in their pocket. It doesn’t cost you much to cover these expenses and actually reduces the overall cost to the buyer.
Providing a year of a residential-service contract to cover any issues with things like plumbing, heating, and cooling gives the buyer peace of mind if they decide to purchase. If the property is in a homeowner community, paying the homeowner association fees for the first year also may attract and get a buyer to purchase. If the property has a swimming pool, offer to provide a season or two of pool upkeep service. It’s just one more thing your buyer doesn’t have to worry about. Paying for the property taxes for the first year is also a good incentive.
Moving is always stressful and moving expenses are sometimes an issue. Offer to help defray expenses and stress for your buyer by offering to hire and pay for a moving company.
Gift cards to grocery or furniture stores are always appreciated and for lower-end buyers may be an important incentive that will save them money if they decide to buy.
You can also include targeted incentives as well. If the property is on or near water, consider including a kayak or Jet Ski as an incentive if the buyer buys. Homes near a fishing spot are perfect for incentives of fishing equipment. Is the property near a golf course? A year’s membership to a buyer who golfs may be just the thing to seal the deal.
To be fair and keep you from any legal issues, incentives should be offered to all current and potential clients regardless of whether you work with the client directly or someone else from your company does. If you decide to offer incentives, they don’t always have to be the same thing for everyone. There are different incentives for different buyers but all buyers must be presented with an incentive to either encourage them to come in, or persuade them to buy.
Incentives are ways of raising yourself above the crowd. Buyers who get receive incentives when they seal the deal with your will tell other people in their relationship circle about what a great deal they got from you and the value-added extras you’ve thrown in. This keeps you in mind with other potential buyers who may be interested in buying from you due to your incentive program.