Coldwell Banker and I have started a Buyer Bonus Promotion in Utah. Below I have listed some of the common questions and answers about this awesome promotion. Just a brief over view, when the Federal Tax Credit expired on April 30th we rolled out a promotion in which a seller agrees to contribute 3% of the purchase price of the home up to $8,000 as a credit to the buyer at closing. Every buyer is eligible if they choose a participating home and their lender doesn’t restrict seller contributions. As you can tell this program is very simple to take advantage of. Call me for a list of participating homes for sale in your area. If you are thinking of selling and would like the powerful marketing and demand this program provides I would be happy to discuss listing your property in our program. Thanks!
Q. WHAT IS THE COLDWELL BANKER BUYER BONUS PROMOTION?
A. The Buyer Bonus promotion offers buyers a financial benefit on their purchase of a home in the form of a 3% (up to a maximum of $8,000) credit towards the costs associated with purchasing a new home.
Q. WHY ARE WE OFFERING THIS PROMOTION?
A. The Federal Home Buyer Tax Credit was created by the government to stimulate home sales by bringing new buyers into the market at an accelerated rate. When it expires, home sales can be expected to slow down without a similar incentive. The Buyer Bonus is an incentive for buyers who were unable to take advantage of the Federal Home Buyer Tax Credit. Home buyers get up to an $8,000 credit at closing subject to their lenders approval. Sellers participating in the Buyer Bonus will make their homes stand out from the competition.
Q. WHO PAYS THE “BUYER BONUS”?
A. Sellers who agree to participate provide the “Buyer Bonus” to the buyer as a credit at closing.
Q. ARE ALL SELLERS ELIGIBLE TO PARTICIPATE IN THE PROMOTION?
A. Only owners of residential property that are listed with Coldwell Banker Pacific Properties (no commercial or vacant land). Due to the distressed nature of REO and Short Sale listings, neither will be eligible for participation.
Q. HOW IS THIS PROGRAM DIFFERENT FROM THE FEDERAL HOME BUYER TAX CREDIT?
A. The Coldwell Banker Buyer Bonus Promotion is a national marketing promotion designed to stimulate sales beyond the expiration of the Federal Home Buyer Tax Credit. The Federal Home Buyer Tax Credit is a government program which, subject to eligibility requirements, generally allows a qualified purchaser to obtain a credit on their federal income taxes.
Q. WHAT CAN THE “BUYER BONUS” CREDIT BE USED FOR?
A. Subject to the Buyer’s lender’s requirements and limitations (if any), the Buyer can apply the Buyer Bonus credit toward anything associated with the purchase of the home that is contained on the HUD-1 Settlement Statement – from closing costs, to prepaid loan items (taxes/insurance, etc.), to discount points, or even an advance principal payment on the loan.
Q. WHAT KIND OF LENDER REQUIREMENTS MAY EXIST FOR BUYERS?
A. If a buyer of an eligible home is obtaining financing, the Buyer’s lender may have restrictions on the type of expenses the credit may be applied to and the total amount that will be allowed. Generally speaking, if a Buyer is financing 90% or more of the sales price of the Property, many lenders will allow a maximum of 3% of the purchase price as credits or incentives. For Buyer’s financing less than 90% of the purchase price, many lenders will allow up to 6% of the purchase price for credits and incentives. Each lender differs and the Buyer must personally determine what requirements or limitations may exist with their chosen lender.
NOTE: The Buyer Bonus is in addition to, and does not replace, any other closing costs and incentives that are included elsewhere in the Contract.
Q. WHAT IF THE BUYER IS PAYING CASH?
A. The Seller will be providing the Buyer pursuant to the terms of the contract a credit for the full 3% Buyer Bonus not to exceed $8,000.
Q. WHAT DOES A BUYER HAVE TO DO TO BE ELIGIBLE FOR THE BONUS?
A. The Buyer must enter into a fully executed contract with the Seller no later than July 31, 2010 and the contract must include the Buyer Bonus Contract Addendum.
Q. WHEN DOES THE PROMOTION BEGIN AND END?
A. The promotion begins on May 1, 2010 and ends on July 31, 2010. The promotion is timed to coincide with the end of the Federal Home Buyer Tax Credit.
Q. DOES THE CLOSING HAVE TO OCCUR BY ANY SPECIFIC DATE?
A. Unlike the Federal Home Buyer Tax Credit which had a closing deadline, there is no closing deadline. As noted above, there is a deadline to enter into a contract, but the closing date will be negotiated by the Buyer and Seller.
Avg. Sales Price: 313,016.00
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