How to Attract Buyers Without Cutting Your Price: 5 Creative Strategies

Every buyer who walks through your home is running two numbers in their head. What would the monthly payment be? And how much cash would they need at closing? That is true in a fast market and a slow one.

Right now, a lot of buyers are feeling squeezed on both. Nationally, there are 63% more sellers than buyers, the widest gap Redfin has recorded since 2013.

When a home needs more interest, most sellers reach for the same tool. They lower the price. The trouble is, a price cut barely changes either of those two numbers. Here are five strategies that actually move the needle.

Why do nearly half of sellers give buyers money, and why does timing matter?

In August, 44.7% of home sales included a seller concession, usually $10,000 to $20,000 toward the buyer's costs. Most sellers wait until a buyer asks for help, usually after the inspection, when the money is simply what it takes to save the deal.

Some do worse. In August, 15.8% of sales included both a price cut and a concession. Those sellers lowered their price to attract a buyer, then paid again at closing. They paid twice.

Builders work the other way around. They show buyers the incentive from day one, before anyone has to ask. You can do the same.

Could covering closing costs bring more buyers to the table?

Cash is what stops most buyers. The typical household has about $8,000 in the bank, according to the Federal Reserve. First time buyers put 10% down, according to NAR. Add closing costs, and the home slips out of reach.

Offering a $10,000 credit toward closing costs means the buyer brings $10,000 less to the table. Compare that to a $10,000 price cut, which saves them about $63 a month and less than $1,000 at closing. The credit does far more work.

Ask your agent what closing costs usually run on a home like yours before you decide on an amount.

What happens when you buy down the buyer's rate instead?

Builders are advertising rates around 3.92%, according to Realtor.com. The typical rate is about 6.95%, according to Freddie Mac. If there is new construction near you, your buyer may have already seen one of those flyers.

Using part of your seller incentive to buy down the buyer's rate, for a year or two or for the life of the loan, directly lowers the number they care about most: the monthly payment.

You will not match a builder's rate. They sell in volume and many own the lender. But even a partial buydown can make your home stand out. Ask a lender what $10,000 would do to a buyer's rate on a home like yours, and get the quote before you promise a number.

Could sharing the inspection report up front keep your deal from falling apart?

About 1 in 7 contracts fell through in July, and Redfin points to inspections as a top reason. Most sellers wait for the buyer's inspector to find the problems. Inspecting before you list puts you in control of the conversation.

Fix what the inspection finds, price for what you leave as is, or share the report with buyers up front. In a competitive situation, a clean report can also help you choose between offers.

One important note: anything the report finds may need to be disclosed. Talk to your agent before you order the inspection.

Does staging really change what buyers decide?

Buyers see your photos before they see your home. You do not need to stage every room. Put your effort into the three rooms buyers' agents say matter most.

According to NAR, 83% of buyers' agents say staging helps buyers picture a home as theirs. Walk through those three rooms as if you were seeing them for the first time. Clear the surfaces, fix the small things, and book a professional photographer.

What if you just let the buyer decide how to use your incentive?

You cannot know which buyer will show up. Some are short on cash. Some are nervous about the payment. Some are focused on price. Offering a set dollar amount and letting each buyer choose how to use it means your incentive works for whoever walks through the door.

Keep in mind that the same dollars can lower the cash at closing or the monthly payment, not both at once. Your agent can help you frame this clearly in the listing.

Which of these strategies fits your home?

Before you cut your price, find out what is actually stopping buyers. Sometimes it is cash. Sometimes it is the payment. Sometimes it is the photos or an inspection concern they cannot see past.

I am Scott Peck, Broker Associate and Business Development Director with JBGoodwin REALTORS. I am glad to walk you through which of these ideas fits your home, what each one would cost, and when to use it. Think it is too early to start the conversation? That is usually the best time.

Are seller concessions the same as lowering my price?

No. A concession is a dollar amount you contribute toward the buyer's costs at closing. A price cut reduces the sales price itself. According to Redfin, 44.7% of August sales included a concession. The two tools do different jobs, and a concession often does more to help a buyer qualify.

Is there a limit to how much I can offer as a seller concession?

Yes. Loan program limits typically cap seller contributions at 3% to 9% of the purchase price for conventional loans depending on the down payment, and contributions cannot be used toward the down payment under the Fannie Mae Selling Guide. Talk to a licensed lender about the limits that apply to your buyer's loan type.

Do I have to disclose a pre listing inspection report in Texas?

Texas requires sellers to disclose known material defects. If you order an inspection and it finds issues, those findings may become disclosable. Talk to your agent before you order the report so you understand your obligations.

What rooms should I focus on when staging?

NAR's Profile of Home Staging identifies the living room, primary bedroom, and kitchen as the rooms buyers' agents say matter most. Concentrating your effort there, and then investing in professional photography, will give you the strongest return.

How much does a rate buydown cost the seller?

The cost depends on the loan amount, the rate being bought down, and how long the buydown lasts. Freddie Mac reports the typical rate at about 6.95%. Ask a lender to run the numbers on a buyer's specific loan before you advertise a buydown amount.

Examples in this post are for illustration only and are not a loan offer or rate quote. Payment estimates assume a 30 year fixed loan at the rate shown and include principal and interest only. Taxes, insurance, mortgage insurance, and HOA dues are not included. Seller contributions are subject to loan program limits, typically 3% to 9% of the price for conventional loans depending on the down payment, and cannot be used toward the down payment under the Fannie Mae Selling Guide. Talk to a licensed lender about your options. MLS data and market statistics reflect conditions at the time of publication and may not reflect current conditions. Verify all figures with your agent before making pricing or concession decisions.

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