10 Housing Incentives I’d Like to See
There was a recent article on Forbes, picked up by Yahoo headlines, on America’s Best Car Deals. The story essentially told us that car sales were down 2.5% over last year and are continuing to drop due to gas prices and the economy, and manufacturers are offering some great incentives. (Primarily rebates, but my favorite was a $2.99 gas price guarantee for 3 years.) This got me to thinking about what kind of incentives I’d like to see in today’s real estate market. Certainly with prices dipping lower than the 2.5% for vehicles, owners should be thinking outside the box.
Now, I know that new home builders offer rebates and incentives all the time. We’ve written about them here in the past. But this is a new ball game. I’m talkin’ about your regular joe homeowner. While low prices are good, throwing in an incentive makes it all that more fun and worth the hunt. So, here are my top 10, not in any particular order. Feel free to add in your own.
Gardening Service (1 Year): No sense in letting your gardener go when you sell. He’s been working for you for over 10 years, does a great job, and at $150/month, that is only $1800 you would have to shell out at closing. A small price, but a big reward, especially for people who work too much/have little time on their hands or are coming from an apartment or condo. Works best in suburban areas.
Housecleaning Service (1 Year): With people feeling the need for those modest 2500 sf homes (see my previous post here), you might think about throwing in a housekeeper twice a week. I think some buyers don’t know what they’re getting into when they move up to a larger home or McMansion (more rooms to clean, more dust bunnies to mop), and for about $300/month or $3600, you would be doing them
a great service.
Brand New Wine Refrigerator/Totally Stocked: For the higher-end home, this might be worth of consideration. Decent half-size wine refrigerators can be had for under $500 and only hold about 20 bottles of wine. While you can’t stock it with Two Buck Chuck, wine that averages $30/bottle is doable, with the cost escalating based on the price of the home. Cost: Starting at $1100.
Free Groceries (1 Year): Everybody has to eat, right? How about a gift card for Safeway, Whole Foods, or Trader Joes? $100/week for 52 weeks = $5200. A bit pricey, but if a family of 6 is buying your house, that could come in mighty handy.
Annual HOA Dues Paid: If you live in a condo/townhouse/loft or SFR community that has HOA dues, think about rebating the annual fee. Average cost for HOA is $300-500, so we are talking about $3600-6000. Again, this is on the higher end, but it would give the buyer a year to manage the mortgage payment, before adding the extra burden of an HOA, which scares many buyers.
Recreational Amenity: Is your house near a lake, canal, the Bay? How about a new canoe or kayak? If you live near biking trails or open space, two new mountain bikes would work. Backyard abuts to the links? Maybe a round of golf each month or some new clubs. Cost would vary, and the added incentive might bring in particular buyers who use that amenity on a regular basis.
Transportation Subsidy: Outlying suburbanites who commute might offer a CalTrain, BART or VTA Pass; city dwellers a Muni pass. Save the environment, don’t offer a gas card or credit, offer a more ecological version with a mass transit credit or pass. Worst case, you could offer a Fastrack pass. Cap the cost at $100/month and all it a One-Year Transit Credit.
One Week Vacation to (insert destination here): Do you own a cabin in Tahoe? A condo in Hawaii or Palm Springs? Maybe a summer house on the Rogue River? One of the most stressful things to do in life is buy a home and move. The financial jitters, the exhaustion of moving, all take their toll. A week away is just what the doctor ordered. Cost would be minimal if you own the destination abode.
Interior Design Services: For buyers just getting started, you will need to furnish that new abode. But where to start? How about your own personal consultant? They can measure the house, assess your taste, take you shopping, and provide a layout for your new purchases. Great for newlyweds and first-time homeowners. Price varies depending on services.
50″ Plasma Flat Screen Television: If those new house payments mean you can’t afford to go out to the sports bars anymore to see your favorite team play, no worries, you can stay at home and watch them on your brand new 50″ plasma. (Does that sound like Don Pardo, telling you what you have won?) Cost: about $3,000.
