 Announcing the 2010 Buyer Bonus program, a national sales event designed to extend the benefits of the tax credit program after the April 30th deadline.
The Home Buyer Tax Credit was created to stimulate the U.S. housing market and address the economic challenges facing our nation. But the Tax Credit expires on April 30, 2010 and home sales are expected to slow down without a similar incentive.
So the Coldwell Banker brand has designed a way to keep home buyers in the market after April 30th with the introduction of The Buyer Bonus program while extending the benefits of the government program to a much wider audience of potential homebuyers.
How the program will work:
The event will begin on May 1st and will end on July 31st. The launch is timed to coincide with the April 30th expiration of the government’s Homebuyer Tax Credit.
Participating home sellers agree to refund 3% of their final purchase price as a credit of up to $8,000 to the buyer at close. It’s open to all home buyers and there are no eligibility or qualification restrictions. Frequently Asked Questions 1.) 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 during the promotional period (5/1 - 7/31). Participants in the Buyer Bonus program are also encouraged to contact their lender to ensure that participation will not adversely affect their financing. 2.) 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 wiht the maximum incentive available through the Homebuyer Tax Credit. 3.) How is the Buyer Bonus paid? The Buyer Bonus will be shown as a credit from the seller to the buyer at closing. 4.) 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. Contact your agent for more information. 5.) 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. 6.) Which homes are participating in the event? The Buyer Bonus program is offered by Coldwell Banker, and will only be found on properties listed by Coldwell Banker in which the seller has agreed to participate in the program. To see a list of participating properties, click here. 7.) 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 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. 8.) Are all homes listed with Coldwell Banker 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. 9.) Is the credit at closing taxable income to the buyer? Each seller's financial and tax situation is different. More importantly, Coldwell Banker 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. |
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