A vast majority of agents can appreciate the virtue and benefits of the $8000 tax credit. In fact, my team's business has increased substantially as a result of this government program. I've recently discovered that it can be even more powerful to the eyes of the buyer if a GREAT deal is found and then applied in conjunction with the tax credit. It is a matter of how it is presented to the buyer in order to close the deal.
Case in point--One of my clients is The Gates at Williams Brice in Columbia, SC (www.thegatesatwb.com). It is a new luxury condominium development that is nearly sold out. With 27* remaining units, the project is hosting a Builder Closeout Event on 6/13/09, noon-5pm. The initial list price of each unit averaged around the $230K range for 2 bed/2 bath unit. The new closeout pricing averages about $158,000.
In addition, the developer is also offering $5000 off of the drastically reduced price if your client is pre-approved and attends the 6/13 event. If this is not enough to get the buyer excited, the seller is also offering an additional dealmaker by giving up to 6% in buyer incentives (per lender approval) to be reflected on the closing statement. This can be applied to rate buydown, closing costs, HOA fees, ect.
By the time you work out the figures based on the average sales price of $158,000, you have nearly $15,000 in buyer incentives, not to mention the $70,000 price reduction!
Here's where the first time buyer tax credit comes in: Uncle Sam is then sweetening the deal further by giving the buyer up to $8000! Incentives/savings/tax benefits total nearly $93,000.
This GREAT deal has suddenly become a FANTASTIC DEAL.
The best part? The developer is paying 5% co-broke. You must be present on 6/13/09 to be eligible. All other sales to be paid at 4% co-broke.
* A limited number of income producing units are available. All units sold on a first come, first contract basis.
If you are interested in seeing this project, please join us for our AGENT ONLY PREVIEW LUNCHEON. 6/10/2009, 11:30-2pm---1085 Shop Road, Columbia, SC 29201. Official pricing to be released at this time.