At CBSI we know that there is no one program that can work for every builder. Working with you, we can design a Contingency Sales Program that best suits your sales strategy.
No matter the degree of customization, we continue to offer our programs at no charge to you. In some cases you may want to provide your contingent buyer an incentive to use your program. Below are three Contingency Incentive Programs that builders have used to motivate contingent buyers.
1. The Seller's Edge Program
This feature-rich program offers sizable rebates and a host of attractive advantages to your contingent buyers.
- CBSI rebates 2% of the commission your buyer pays to sell his current home.
- We pay the contingent buyer a $2,500 Moving Allowance.
- We also pay up to $1,000 to have the contingent resale home staged.
- Net builder cost = 3 percent of net new home sales price (broker coop).
Analysis
Seller’s Edge is our strongest buyer incentive program. It has proven to be the most successful tool to motivate and retain your contingent buyers. View promotional brochure.
2. Seller's Rebate Program
CBSI offers your contingent buyer a 1.5% commission rebate of the resale home or new home, whichever is less. Use this program when paying a flat broker coop fee.
- The rebate is paid at the close of escrow of both the resale and new home.
- Resale home sales price = $500,000
- New Home sales price = $800,000
- CBSI pays your buyer a 1.5% commission rebate of the resale home = $7,500
- Builder pays CBSI a Broker Coop fee.
- Net builder cost equals the flat broker coop fee you are offering. Since that amount can vary, not all builder communities can qualify to use this program.
Analysis
Your contingent buyer pays only a 4.5% commission to sell his or her current home. 3% of the commission is still offered to the selling agent, which keeps the listing competitive with other properties for sale. Your cost will be determined by the amount of broker coop fee offered at a participating community.
3. Design Center Credit
You provide your buyer a 1.5% Design Center Credit.
Sample builder net cost:
- Resale home sales price = $350,000
-
1.50% Design Center buyer credit = $5,250
- CBSI contribution from commission = $1,225 ($350,000 X .01% X 35%)
- Design Center profit margin 4O% = $2,100 ($5,250 X 40%)
- Net Builder Cost = $1,925 ($5,250 - $1,225 - $2,100)
Analysis
You provide your buyer an incentive of $5,250 and have a net cost of $1,925.
Note: The Design Center Credit is based on the lower of the resale or new home price.