KW STIMULUS PLAN

The "KW Stimulus"


The "KW Stimulus" is simply a suggestion to the "very motivated" seller to offer to pay for mortgage interest rate "buy-down" points for a potential Buyer. So, after the Seller offers closing cost assistance (maybe 2% of price) , a home warranty ($400), and the whatever else, the "KW Stimulus" reminds us all "giving never gets old", and suggests an up-front cash outlay by the Seller to cover "points".

1) Leverage, baby ! You, the "motivated seller" can honestly say you are saving the Buyers BIG BUCKS. Like possibly thousands or tens of thousands over the life of their mortgage. And you are. That 1/2 % reduction of interest on a $200,000 home is worth a monthly payment reduction of $60, but this amounts to a total interest paid savings of over $20,000 over the life of a 30 year, fixed rate mortgage.

2) And if the home is sold VA or FHA, that killer mortgage is assumable. The rate becomes a marketable asset. You are giving them something that will help them sell when it comes time to do so !

Brilliant.

Honestly, you have to hand it to the leaders at Keller Williams. They have taken existing information and gift wrapped it to help both Buyers and Sellers alike. While, of course, continuing to grow the most educated, skilled force of agents anywhere. I am truly glad to be part of that team.

In closure, a word of warning. Panic is expensive. So is impatience. Any fool can give something away. When the only option offered is "drop price", be concerned. While that may indeed be necessary to meet whatever goals YOU have set, there are always multiple options you must be both aware of and pursuing.

For instance, before slabbing $10,000 off the asking price, does your home ALWAYS look stellar from the curb? This probably costs much, much less to accomplish than $10,000.

Have you considered partnering with your agent to fund an "over the top" marketing plan for the home? Billboard advertisement ($700), color newspaper ads($250), use your home to sponsor the neighborhood yard sale / local charity event ($500) ? Postcard mailers with a color picture of your home mailed to 2000 people selected using detailed demographic information ($1,000). ***Costs are estimates. But - you get the picture.

In these difficult times, it is natural to see the glass as half empty. Natural, but wrong. Where there exists great challenges (for Sellers), there exists great opportunities (for Buyers). And in realizing that, Sellers become aware of what they need to do to reach their goals as well !

And that piece of wisdom is what best describes "KW Stimulus ". Understand what is attracting the Buyer, AUGMENT IT to differentiate yourself from everyone else - but do so in a way your contribution is leveraged to deliver maximum value.

That is what you should expect from your agent. And if your agent is with Keller Williams, I like your chances of getting just that.