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Term | Definition |
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Incentives | Also known as bonuses or "perks", are an additional payment (or other legal remuneration or reward) typically to buyers as a means of increasing their interest in a property or enabling them to be able to purchase the property. For example, a seller may offer to pay a buyer's allowable closing costs. This enables the buyer to use more of their available funds for down payment or keep more money in their pocket at closing to pay for home improvements. Another example of an incentive would be a home warranty paid for by the seller. A buyer would not only save the cost of buying one for themselves, but a warranty would save them money over time with some of the inevitable repairs, making the property more attractive when they are considering a purchase (or compared to another similar property that does not come with seller paid closing costs or a home warranty). |
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