Getting More Business with the $8,000 Tax Credit and Your First Home Presented by Maggie...

Getting More Business with the $8,000 Tax Credit

and Your First Home

Presented by Maggie Crosby-LeBlanc

New Bern, NCTeam Leader

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Main Ideas1. Understand the $8,000 tax credit – it’s a GIFT for

first-time buyers, but it EXPIRES soon.

2. Leverage the tax credit to create urgency.

3. Write an action plan and drive your lead generation through niche groups of first-time buyers.

4. Leverage Your First Home (presentation and book) to educate your community and generate more first-time buyer business.

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Why work with first-time buyers?

1. They get $8,000 if you find them a home.

2. First-time buyers can often become repeat customers or powerful referral sources.

3. They give you an opportunity to increase your productivity right now.

4. They also have a direct stabilizing impact on their communities and the broader economy.

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Why work with first-time buyers?Economic effects of the first-time buyer:

More buyers at the bottom means more trade-up transactions.

To drive market activity now, we need to educate buyers about the tax credit – and leverage it to create urgency.

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Why work with first-time buyers?

THEY NEED YOUR HELP!In a recent survey, 76% of agents stated they conducted a sit-down buyer consultation before showing the first-time buyer the first home.

49% of first-time buyers signed a buyer representation (exclusivity) agreement with their agent before the agent started searching for homes.

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Understand the $8,000 Tax Credit

Gift only available to first-time buyers. Expires at midnight on November 30, 2009.

Requirements to Qualify:1. Buyer must not have owned a principal

residence in last three years.

2. Buyer income cannot exceed limits.

3. Purchased home must be held as principal residence for three years.

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Understand the $8,000 Tax Credit

Maximum tax credit is $8,000. Qualified first-time buyers can close on a

home and expect a check for up to $8,000 in 30-60 days.

Certain states offer approved bridge-loan down-payment financing. Ask area lenders for details.

New homeowner should fill out and mail IRS tax form 4505 upon closing and transfer of title.

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Create urgency with the $8k credit Up to $8,000 tax-free, non-repayable funds – to be

used at buyer’s discretion.

Tax credit expires soon – it takes time to secure financing, find and close on a home.

Mortgage rates near historical lows – lock in a low rate today.

Great deals are out there – new, resale, REOs and foreclosure properties.

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Step 1: Expand your sphere of influence.

Step 2: Locate those ready to move off the fence and create urgency

with the $8,000 tax credit.

Step 3: Educate your clients with regular, well planned and promoted

seminars.

Step 4: Create urgency and convert leads to closed transactions.

Four steps to getting more first-time buyer business

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Step 1: Expand your sphere of influence Meet local groups and associations:

a. Teachers b. Firefighters, Police Officersc. Military and Veterans d. Healthcare Professionals – Nurses, EMTse. College students or graduate students

Mine your databasea. Who have you helped in recent years and months?b. Ask for referrals – buying age children of your clients

Target mets – Who do you know? Who do they know?


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Step 2: Locate those ready to move off the fence and create urgency with

the $8,000 tax credit. Target aforementioned niche groups (teachers, etc.) and

share special incentives Target high-end rentals (apartments and condos) Use e-resources (Craigslist, Facebook) Follow engagement, wedding, and birth announcements Send direct mail or email marketing to offer:

1) information on the $8,000 tax credit 2) a copy of Your First Home 3) top 10 buys or a best buy list 4) free analysis or local market consultation


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Step 3: Meet and educate your market Hold a no-pressure weekly meet and greet. Position yourself as the local economist of choice

—with expert knowledge of your market. Invite select prospects to a “Get a home and

$8,000 in your pocket” first-time buyer seminar.


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Step 3: Meet and educate your market Schedule a presentation in advance – partner

with your team and vendor-sponsors. Hold the presentation at a community center, a

place of worship, a faculty office, or a hotel. Invite select groups and promote weeks in

advance on Facebook, Craigslist, via flyers. Present as a team and give out books.


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Step 3: Meet and educate your market Tailor your first-time buyer presentation to

your specific target group and provide details of special incentives available.

Share with them examples of opportunities in their market within different price ranges – best buys, REOs, etc.

Talk about the historical value appreciation rate for neighborhoods in your market.


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Success stories: THIS WORKS!

Shayla in Corvallis, Oregon

Tisha in New Bern, North Carolina


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Step 4: Create buyer urgency and close Remind all prospects this is a buyers’ market—and

the $8,000 tax credit expires soon. Walk buyers through the home ownership process. Tap into the “why” and address buyers’ personal

motivations. Help them get clear on their reasons—Why delay buying? NOW is a great time to buy.

Position yourself as the local economist of choice—and the trusted expert in your market.


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7 reasons for buying in 2009:

1. First-time buyer tax credit ($8,000 or up to 10% of the cost of the purchase)

2. Mortgage rates remain near historical low (around 5.6%).3. Best affordability and prices since 2003-2004 4. Better choice of inventory – distressed, resale, new 5. Motivated sellers may be more willing to give concessions6. Federal, state, and local grant or assistance programs7. Low down-payment programs – FHA, VA


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Median Home Price (in thousands)

$96$104

$111

$165

$195

$222

$198$219

$169

$144$133

$120

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Step 4: Create buyer urgency Overcome reluctance.

a. Dispel myths and fears about buying.

b. Be sure your buyers are truly able, ready, and willing.

For more information, refer to SHIFT Tactic #9: Create Urgency – Overcoming Buyer Reluctance.


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Getting More Business with the $8,000 Tax Credit and Your First Home

Action Steps for Success1. Create a plan and time block for lead generating to FTB.2. Educate yourself about federal, state, and local

incentives and work with lenders to identify special financing programs available for first-time buyers.

3. Prospect and market to select niche groups of first-time buyers and schedule monthly first-time buyer seminar dates through November.

4. Read and master Tactic #9 in SHIFT.5. Download the free presentation and worksheets at

http://www.millionairesystems.com/msys/FD.html.6. Order copies of Your First Home at

www.millionairesystems.com.

http://www.millionairesystems.com/msys/FD.html

http://www.millionairesystems.com/

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Resources

1) www.kw.com/kw/2009TaxCredit.html

2) www.federalhousingtaxcredit.com

3) MillionaireSystems.com

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www.kw.com/kw/2009TaxCredit.html

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www.federalhousingtaxcredit.com

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www.MillionaireSystems.com

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1. Download the customizable first-time buyer presentation.

2. Order copies of Your First Home book.

3. Download, review, modify Worksheets.


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Q & A with Maggie Crosby

With the remaining time we’d like to answer any questions you might have.

Please raise your hand OR enter your questions into the chat box now.

Thanks for being heretoday. Good luck with your first-time buyers!

Let us know how we can help you!

Please drop us a line at [email protected]

Getting More Business with the $8,000 Tax Credit and Your First Home Presented by Maggie...

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