Offering Price Protection May Help Sell Your Home?

Real estate prices are still dropping at a rate that many buyers may be scared off from purchasing. Home prices have fallen by more than 30 percent since their peak in mid-2006, and although the decline is slowing, they continue to fall.

  It would seem that buyers are not purchasing now thinking they may still get a lower price in 6 months or so.  But the Methow Valley real estate market can be stabilized in many ways and one being by sellers offering incentives and valuable reasons to buy now.  Sellers can reassure nervous buyers by offering a price guarantee: If this house is worth less than what you paid for it in a year, I'll refund the difference.

This may help sellers sell their home quicker and with more confidence, and it wouldn't necessarily cost them very much. Sellers would reimburse their buyers for any fall in the average value of homes in the Methow Valley real estate area in the year following a sale. This can offer buyers confidence that their home will not depreciate after their purchase even if the market falls slightly more.  This can be the confidence that buyers need in order to buy now.

The whole idea is that sellers offer enough incentive to buyers that they won't have to pay because there will be enough sales of homes to stabilize the market.

Here is how it works: At the time of closing, 10 percent of the purchase price might be placed in escrow for 12 months (with the remaining 90 percent going to the seller). If the median sales price in the city falls in the 12 months after the sale, then the drop in value would be returned from the escrow account to the buyer—with any remainder in the account being released to the seller. If housing prices don't fall (or go up), the seller would recover all of the escrow. Then the buyer can take confidence in that they did not overpay for the home.

This of course can't work for all sellers. If the seller doesn't have much equity built up in the home, they will need all of the buyer's money at closing merely to pay off their existing mortgages. Also, some sellers will need that extra 10% to make a down payment on their next home.

All transactions are negotiable and should be worked out between the buyer and seller. In many cases this is a win/win situation for all parties. Buyers get their home, sellers get to sell, and the housing market and economy in general benefit from a more stable market.

For more information on if this situation would work for your Winthrop real estate, contact us today. We can help market your home in a way that is most appealing to today's buyers!

ADDITIONAL REAL ESTATE SOURCES:   Search all WA State Real Estate for sale, Save your favorite homes that you would like to see! We are a team of Preview Properties - Serving all your Washington Real Estate Needs. Huneycutt Realtors is your complete source for all Clarksville TN real estate and homes for sale in Clarksville Tennessee. Conact Exit Realty for all your Huntsville AL real estate needs.