What does it take to get a buyer to sign on the bottom line and agree to buy your home? In some parts of the country, it’s common to bribe buyers with a lot of incentives. But the data show that Incentives Offered to Buyers in 2013, Western Region USA were actually fairly modest:
Source: National Association of Realtors 2013 Profile of Home Buyers and Sellers
Despite what you may have heard, a full 74% of home sellers in the Western Region of the USA in 2013 offered no incentives to buyers whatsoever. When incentives were offered, the most common incentive – with 12% of sellers offering this – was a home warranty. The average home warranty price is around $400, but costs can vary anywhere from $350 to $650 (or more, for a large house with lots of expensive amenities like hot tubs, pools, etc.). A $400 concession on a $400,000 sale price is one tenth of one percent – that’s some concession!
Some sellers did have to make more significant concessions: 11% offered closing cost credits, which rarely exceed 5% of the purchase price due to lending restrictions. Another 7% offered repair credits, which could run in to thousands of dollars, easily. 4% of sellers threw in some personal property – things like televisions and furnishings.
The market was hot in 2013, but even in an off year, sellers do not typically offer heavy incentives to buyers in California. It’s the Golden State, and real estate continues to be in strong demand in most pats of the state.