Coldwell Banker Extends Tax Credit

Bob, this is basically a seller-credit program.  Sellers are agreeing to credit up to $8,000 to their buyers (if they should receive a satisfactory offer)... they are not increasing listing prices... and CB is not participating in the rebate.

Not all CB clients have opted to participate... but those who have will be featured in special advertising, such as the ad you saw.

Interesting!  Here are my thoughts:  if it's a cash sale, there's no problem, seller can give cash back to the buyer.  If there's mortgage financing involved, all parties have to follow lender guidelines, so no more than 3% (of purchase price) of seller's $$$  paid towards buyers expenses, and no cash back to buyer.  It seems to me it's an advertising gimmick.

I think it goes beyond a novel idea. I think CB is tripping on some bad advice. They want the seller to carry on the Mr. Rogers "your entitled" to something wonderful just because you're you tradition. Legal or not in one state or another, I feel it's time to stop coddling buyers with gifts to get them to buy. It's time they realize that prices are great and interest couldn't be better. If you want to buy a home, save up some money and then go get one.

I'm not a CB agent, but recently I talked to a friend of mine (not an agent) who's in the process of selling his house in Colorado. His real estate agent works for CB and he received this same letter in the mail. He was not upset with his agent  (in fact, he had wonderful things to say about her) but he was pretty mortified that CB would initiate a "giving" program in which their customers are the ones doing all the giving, and CB gets the credit.

My thoughts exactly, Bob, I saw the commercial on tv.  The commercial did say "on selected properties" which, I assume, are the ones where sellers agree to.  I think the commercial was misleading in that viewers were lead to believe they could only get this credit if they bought through CB. 

As a seller this would make me upset. If I decide not to participate this means less advertising bucks will be spent on my listing.

Bob,

Thanks for presenting this information. Great advertising gimmick. Too bad CB expects clients to pick up the bill. The buyers who choose a property where the sellers elect not to participate must feel ripped off.

Buyers and sellers simply need to find an agent who works hard for their clients and forego TV ads and gimmicks. If it sounds too good to be true ...

I hope borrowers are informed that if their closing costs are less than the bonus, that the remainder will be going back to the seller. (At least that is how it works here in California).  This promotion doesn't seem to benefit anyone except CB.

Bob, now that is an interesting program!  And you're right about the appraisal issues. 

In this area, a lot of properties got bid up to over $8000 above the asking price, often without appraisal contingencies in the contracts.  It'll be interesting to see how the prices play out now that the credit has ended.

As a former CB agent I can tell you the first pound of flesh usually comes from the CB agent...
Have a great Wednesday Bob!
Paul

Just another not so great marketing idea on a corporate level in the long run. Short term I can see why they thought it might fly. I agree with Paul - the first pound of flesh will come from the agents.

Bob..........I would think that is treading on very thin ice.  I shouldn't take long to see if it works as they planned.