The government sponsored $8,000 home buyer tax credit is set to expire, and tis a bummer indeed if you missed out on it. But fear not, the gigantic corporate sponsored wave has begun, and Coldwell Banker is the first to set the bar by offering their own incentive (3% up to $8,000) in what they’re calling their “Buyer Bonus Sales Event”.
[O]n May 1, 2010, immediately following the expiration of this government initiative, home sellers participating in the Coldwell Banker Buyer Bonus Sales Event will offer a credit of 3 percent (up to $8,000), when part of an accepted offer, of their home’s purchase price to buyers who sign a contract before July 31, 2010. There is no deadline for a closing date.
“The federal government did its part to encourage millions of Americans to achieve their dream of home ownership with the help of the home buyer tax credit,” said Jim Gillespie, president and chief executive officer for Coldwell Banker Real Estate LLC. “As the credit expires, Coldwell Banker Real Estate is encouraging buyers who haven’t found a home yet to continue looking, while bringing a new audience of home buyers who were unable to qualify for the tax credit into the market. We are confident that this private sector solution will represent a significant step toward continued recovery of the housing market.”
“The Buyer Bonus Sales Event will allow participating Coldwell Banker home sellers to essentially extend the benefits of the credit,” said Gillespie. “Without restrictions such as household income caps, the Coldwell Banker Buyer Bonus Sales Event allows for greater participation for all homebuyers. And our sellers have a unique opportunity to allow their home to stand out from the competition in their marketplace.”
In addition,
“All home sellers who take part in the Buyer Bonus Sales Event will receive broad marketing support from Coldwell Banker Real Estate LLC, including:
National television commercials beginning May 1, 2010; extensive online advertising
Promotion on [CB website].
Updates on the event to be shared on Coldwell Banker Facebook and Twitter pages and the Coldwell Banker blog, Blue Matter;
A video posting to the Coldwell Banker On Location channel highlighting the practical value of $8,000.
This is all fine and good in the rest of America, but will we see this incentive surface in the San Francisco housing market? If so, what does this do to the smaller (local) real estate companies competing for those listings? It’s kind of hard to compete with that marketing campaign (unless you have a popular blog like this ;-) ). Is this the beginning of “flat rate” or “reduced” commission structure listing agreements? Time will tell, and your comments are appreciated. One thing is for sure, this will certainly light a flame under the booty’s of all the other Brokerages in this town.
Alex,
The $8k, or 3% is funded by the seller. Only certain properties whose owners voluntarily participate, will offer the incentive.
Thanks for the clarification WCMike
How is this program any different from common practice now? Buyers can negotiate price with a seller, and even ask for 3% help towards closing costs, repairs, etc.
The federal tax credit was a true credit, outside of closing. So even a buyer who is getting the federal tax credit, could have also negotiated a 3% help from the seller to cover closing costs. The buyer would have received 3% from the seller PLUS up to $8000 from the government.
What is Coldwell Banker’s investment in this program? The things they are promising sellers who participate in this program are no different from what they normally would do. If CB thinks this is such a great program, why don’t they throw some money into the transaction?
Buyers and sellers need to read the fine print, and they need to be educated on the normal practice of real estate in their area. Then they will see that this program is nothing but smoke and mirrors!
If this is such a great program and CB really wants to help the economy, why aren’t they kicking in a percentage from their own pockets? Nice of them to ask us seller’s to kick in another 3% on top of our already incredibly low listing prices. Seems to me that everyone except for the seller stands to gain from this. Remember we seller’s are already taking a big hit because of this economy as well. Where is the help for us?
Benifit to the sellers who already took a hit is the new found knowledge that you overpaid for your house and when prices dropped (to fair prices) you were underwater. Learn from it and if you took out a second on the appreciated value from others like you over inflating the market then you learned even more. Prices are currently down very little and are in line to realities and expecting your home to have the value it had 4 years ago is futile
Thank you Lisa for the very intelligent post. Just an additional reminder that CB will be making their commission BEFORE the 3% deduction. They lose NOTHING from this program and put all of the expense on the sellers. As a seller with listing agreement w/CB, I will NOT participate in this program. I’ll do it the old fashioned way: negotiate.
This is just another way that the desperate CB is trying to hoo-doo buyers and sellers alike! Like Fred above, CB is not willing to put their $$ where their mouth is! Ask them about the “DocumentFee” that is charged…they have to store your docs for up to 5 years per state law and on it goes..Their lenders, Their this and their that..are they REALLY looking after your best interests?
As a seller with a current listing with Coldwell Banker, I am appalled that the company would sell me out in this manner. Would someone please remind them that they have a fiduciary duty to their sellers, which includes the duty to refrain from creating an environment in which buyers are encouraged to make below-market offers because “everyone else” is offering them a deal? I’m so furious I’m ready to pull my house off the market.
I have an idea. How about I start a nationwide advertising campaign promising that “participating” Coldwell Banker agents will reduce their fee by half and remit the difference to the seller as a bonus? Do you suppose that when they are barraged with clients expecting to take advantage of the deal, they’ll wake up to the fact they have just served their own clients up on a silver platter?
The incentive wars have begun!
My children applied for the tax program and everything was getting ready for closing and the seller comes up with this story about he forgot that he had a certain amount of money against the house. My children had to ask for an extension and they were only weeks away from closing when the deal was off.
This is in Washington State and since my daughter is pregnant they just did nothing.
I have bought three houses and sold two and I know that our house had to clear before the loan could even go through so how can this seller just let two wonderful young adults lose out on a great deal.
How is your program different and are there many houses in good condition the “The Tri-Cities area and in Richland but they can only
afford around $100,000 and this house was a step down in sq. footage even from their apartment. I want to know what is available and I know this amount seems low but with one income it is hard to find a good house without getting a dump.
[email protected]
I had thought about purchasing a rental and letting them rent but I am not getting a postive feedback from my husband because we live in Salem, Oregon.
Check out http://www.atListings.com If CB really wants to help the sellers (and buyers for that matter) they’d reduce their commissions. At least one broker is doing just that and still offering full service…with aprox. 50% savings!
What a crock. This is nothing more than a marketing ploy that has been around since dirt. On a conventional mortgage loan the lender will only allow the seller to give a credit up to 3% of the sales price based on “allowable” closing costs and pre-paids. Commissions to real estate agents and future property taxes are still based on “sales price”. This same “incentive” applies to any agent listing/selling a home for a seller or buyer. There is no “special deal” here from CB that you can’t get elsewhere.
I as a sellers needs help selling my house. That is why I have a real estate agent. Agents are hurting and are trying to sale houses but the news media keeps people full of fear. Buyers don’t know what to do. Cold Wells program may help buyers think they are getting a deal but I feel buyers are smarter and will do as always. Just make a low ball offer and hope the media has put fear in sellers. I say hang in there. Price your house to sell and it will sell.