A Sale That’s Not A Sale
The Homebuyer Tax Credit isn’t even in the can and the marketing gimmicks are out to get buyers buying. …..A shameless ploy to bring buyers through the doors….. Here’s a preview:
National Real Estate Company Not Named RE/MAX Buyer Bonus
Missed the home buyer tax credit?
Now there’s an even better Buyer Bonus!
May 1st – July 31st
Get up to an $8,000 credit back at closing.
Participating properties will appear beginning May 1st. Come back to search for your dream home!
The National Real Estate Company Not Named RE/MAX Buyer Bonus Event is a 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.
Open to all home buyers – No income limitations – No property eligibility requirements
The home buyer tax credit has come and gone. Fortunately, the door is now open to something even better – the National Real Estate Company Not Named RE/MAX Buyer Bonus Event! But hurry, The Buyer Bonus is a limited-time offer.
Let’s look at the facts of this “Big Event”.
1) Upto $8000. Any property under $266,667 is getting less.
2) Banks love when sellers give money back. They allow for up to the closing costs. (According to the IHRE Mortgage guy, it’s likely less than 3% on a $400k purchase.) What happens when you have a $1000 home inspection issue. If the seller gives the $1000, bet I know which 3% that comes out of.
3) “Participating” sellers also know that you are going to get another 3% when negotiations are finalized. Bet most of these sellers have a bottom line too. It’s not like walking into some store with an internet coupon that you whip out after making your best deal.
4) Limited Time Offer. In the Hoboken market where the average discount to sale price is 5%, what does this 3% thing mean. It’s like walking onto a used car lot and seeing all cars are 3% off this weekend only. Think you might be able to negotiate a 3% discount on your own this weekend, next weekend, next month, next year??? Might this be a line of reasoning that the seller’s agent is using to get the seller to agree to participate?
5) Let’s combine numbers two and three in a perfect storm scenario. Buyer wants a place for $400k Sellers bottom line number is $400k. They settle at $408k with an $8000 rebate. Home inspections issues are $10,000. Maximum seller concession is 3% or $12,000. Seller gives $10,000 for home inspection issues and $2,000 rebate. Buyer pays $406k, not $400k. I can hear this deal blowing up all the way across town.
So to recap. Buyers will be rushing in to 1) sometimes get less than the $8000. 2)Have the “rebate” lessened by other seller concessions. 3) Be negotiating against themselves and 4) getting worse or the same deal they can get on their own in most cases. 5) an unstable situation where purchases are likely to fail during home inspection.
This is what I call a win-win. Kudos to the marketing genius that came up with this one…..Probably an Ohio State grad. Names have been changed to keep that guy in a job and off the city’s payroll….He has a cousin…need I say more.
A Sale That’s Not A Sale