Coldwell Banker Buyer Bonus FAQs
- What is the Coldwell Banker Buyer Bonus Event?
The Coldwell Banker Buyer Bonus Event is a three month-long national sales promotion that begins on May 1st and lasts through July 31st, 2010. Sellers participating in the promotion are giving 3% of the accepted offer price up to $8,000 credit at closing back to homebuyers who sign an offer before the July 31st deadline. The Event is timed to coincide with the April 30th expiration of the government's Homebuyer Tax Credit, extending the benefits of the government program to a much wider audience of potential homebuyers.
- Why is Coldwell Banker doing this promotion?
The national government has done its part in helping to reinvigorate the housing market through the extension of the tax credit. Some people may be anxious about missing the April deadline. The Coldwell Banker Buyer Bonus Event will allow participating Coldwell Banker home sellers to "essentially" extend the credit for participating homebuyers. And the Coldwell Banker Buyer Bonus Event has fewer restrictions. With the increased inventory around the country, Coldwell Banker listings will stand out from the competition.
- How does it work?
It's simple. If a home seller decides to participate in the promotion, they agree to refund as a credit at closing 3% of their final home purchase price up to $8,000 to the buyer. The buyer simply has to sign an offer on a participating property after the promotion start date and before the promotion expiration date. The home seller should consult their Coldwell Banker Professional, REALTORS® agent to make sure that program participation aligns with their sales goals and to coordinate event enrollment. Participants in the Buyer Bonus program are also encouraged to contact their lender to ensure that participation will not adversely affect their financing.
- How much is the Buyer Bonus?
The amount of the Buyer Bonus is equal to 3% of the home's purchase price on accepted offers up to $8,000. The bonus will be shown as a credit from the seller to the buyer at closing. The bonus cannot exceed $8,000. The $8,000 amount was chosen because it coincides with the maximum incentive available through the Homebuyer Tax Credit.
***SPECIAL NOTE FOR CALIFORNIA COMPANIES ONLY***
The state of California has recently announced that they were extending their own state level tax credit for new homebuyers, with an amount up to $10,000. California affiliates may extend the Buyer Bonus credit up to $10,000, so long as that does not exceed 3% of the sales price. Please note the following:
- The end card of the national TV spot will indicate "Up to $10,000 in California"
- The coldwellbanker.com landing page will include a footnote "Up to $10,000 in California"
- How is the Buyer Bonus paid?
The Buyer Bonus will be shown as a credit from the seller to the buyer at closing.
- Will there be any issues with the Buyer Bonus program affecting the buyer's financing or will this be perceived as an inducement to buy from the seller?
No, if the contract is written and structured properly. The Buyer Bonus program should be treated as a typical seller concession in the contract to be applied towards items like closing costs and other prepaid items. We have created a set of specific lending FAQs based on recommendations from Coldwell Banker PHH Mortgage available on Coldwell Banker Works, click below to access.
http://cbworks.coldwellbanker.com/app/Content?action=viewContent&content=14556165
- Does the closing have to occur by a specific date?
No. Unlike the Federal Home Buyer Tax Credit which had a closing deadline, there is no closing deadline for the Buyer Bonus event. The deadline to enter into a contract will be July 31st when the program ends, but the closing date will be negotiated by the buyer and seller
- What is Coldwell Banker doing to promote the Event?
Coldwell Banker is investing the resources necessary to promote the Buyer Bonus Event on a national scale. There will be :15 second Coldwell Banker television commercials airing during the month of May, June and July promoting the event. The event will be heavily highlighted on coldwellbanker.com and www.cb-pro.com, including a flash header and banners/buttons as well as a "Buyer Bonus" check box on the quick search function. Coldwell Banker will have Buyer Bonus messaging available on Facebook and Twitter, as well as a consumer video on OnLocation, the most visited real estate channel on YouTube. <> We will also be conducting a significant public relations outreach as well.
- Which homes can participate in the event?
Any property listed with a Coldwell Banker Professional, REALTORS® agent is eligible for inclusion in the Buyer Bonus Event.
- Which home buyers are eligible for the Buyer Bonus?
Unlike the Homebuyer Tax Credit which had income limitations and property eligibility requirements, all home buyers are eligible to participate in the Coldwell Banker Buyer Bonus Event. The key is to make a qualified offer on a participating property that the home seller accepts. Participants in the Buyer Bonus program are encouraged to contact their lender to ensure that participation will not adversely affect their financing.
- How are participating properties going to be displayed on the Coldwell Banker website?
Each listing will have a special logo on the search results and detail pages to alert the consumer that it's a participating property on coldwellbanker.com and <>.. There will also be a flag that consumers can "check off" that would only search properties participating in the buyer bonus event. Affiliates can flag property listings participating in the buyer bonus event in Secure, by selecting Buyer Bonus from the Special Program dropdown.
- How do sellers and buyers take advantage of the program?
For home sellers, participation in the program can be arranged by contacting their Coldwell Banker Professional, REALTORS® agent. They'll be able to help you evaluate the program's benefits and facilitate the necessary paperwork. For buyers, they simply need to choose a home that is participating and sign an offer on or before the Event cutoff date of July 31st, 2010.
- How will a buyer know if a house is participating?
Participating homes will typically display Buyer Bonus Event yard sign riders which agents can order. Again, they will also be tagged as Buyer Bonus homes on their property detail pages at www.coldwellbanker.com and <>. During a property search on coldwellbanker.com, buyers can simply check the box labeled "Buyer Bonus Event" and participating properties in their area will show as their results.
- How will the program benefit the seller?
Participation in the Buyer Bonus Event could improve the chances that a seller's home will sell more quickly during a particularly challenging time for the marketplace. It also gives the seller the opportunity to draw additional attention to their property by taking advantage of the national promotion of the event.
Coldwell Banker plans to generate widespread awareness and replenish a home buyer pipeline depleted by the expiration of the government's Tax Credit program.
- Aren't you really just asking sellers to reduce their asking price?
The purpose of the event is not to adjust the price of properties. Instead, it is meant to provide an incentive to buyers once the government's Tax Credit program expires on April 30th.
- Are all homes listed with CB participating?
No. Participation is determined solely by the home seller on an individual basis. We are, however, encouraging widespread participation given the market situation and the heightened short-term need to provide home buyers with incentive. Any pricing decision is in the seller's sole discretion and is subject to negotiation between the buyer and seller. Certain sellers may elect to extend the Buyer Bonus beyond the promotional period.
- Is the credit back at closing taxable income to the buyer?
Each seller's financial and tax situation is different. More importantly, Coldwell Banker Professional, REALTORS® agents are prohibited from providing tax or legal advice, so every seller should be advised to consult with their accountant and/or attorney to determine what effect the Buyer Bonus program may have.
- Does the Buyer Bonus affect a sales associate's commission?
A sales associate's commission is dictated by the purchase price of the home. The Buyer Bonus event is not a price reduction program and therefore should not affect a sales associate's commission.
Legal Disclaimer: Any pricing decision is in the seller's sole discretion and is subject to negotiation between the buyer and seller. No portion of a real estate broker's or real estate sales agent's commission is offered as part of the credit incentive. Buyers are encouraged to contact their lender to ensure that participation will not adversely affect their financing as well as an attorney or tax professional regarding any legal or tax implications. Certain sellers may elect to extend the Buyer Bonus beyond the promotional period.
|
