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.