12 Frequently Asked Questions

1. What is the Coldwell Banker Buyer Bonus Event?
   The Coldwell Banker Buyer Bonus Event is a three month-long national sales promotion that begins on May 1^st and lasts through July 31^st, 2010. Sellers participating in the promotion are giving 3% of the accepted offer price up to $8,000 credit at closing back to homebuyers who sign an offer before the July 31^st deadline. The Event is timed to coincide with the April 30^th expiration of the government’s Homebuyer Tax Credit, extending the benefits of the government program to a much wider audience of potential homebuyers.


2. Why is Coldwell Banker doing this promotion?
   The national government has done its part in helping to reinvigorate the housing market through the extension of the tax credit.  Some people may be anxious about missing the April deadline.  The Coldwell Banker Buyer Bonus Event will allow participating Coldwell Banker home sellers to “essentially” extend the credit for participating homebuyers.  And the Coldwell Banker Buyer Bonus Event has fewer restrictions.  With the increased inventory around the country, Coldwell Banker listings will stand out from the competition.


3. How does it work?
   It’s simple. If a home seller decides to participate in the promotion, they agree to refund as a credit at closing 3% of their final home purchase price up to $8,000 to the buyer. The buyer simply has to sign an offer on a participating property after the promotion start date and before the promotion expiration date. The home seller should consult their Coldwell Banker Funkhouser Realtors agent to make sure that program participation aligns with their sales goals and to coordinate event enrollment. Participants in the Buyer Bonus program are also encouraged to contact their lender to ensure that participation will not adversely affect their financing.


4. How much is the Buyer Bonus?
   The amount of the Buyer Bonus is equal to 3% of the home’s purchase price on accepted offers up to $8,000. The bonus will be shown as a credit from the seller to the buyer at closing. The bonus cannot exceed $8,000. The $8,000 amount was chosen because it coincides with the maximum incentive available through the Homebuyer Tax Credit.


5. How is the Buyer Bonus paid?
   The Buyer Bonus will be shown as a credit from the seller to the buyer at closing.


6. Will there be any issues with the Buyer Bonus program affecting the buyer’s financing or will this be perceived as an inducement to buy from the seller?
   No, if the contract is written and structured properly. The Buyer Bonus program should be treated as a typical seller concession in the contract to be applied towards items like closing costs and other prepaid items.


7. Does the closing have to occur by a specific date?
   No. Unlike the Federal Home Buyer Tax Credit which had a closing deadline, there is no closing deadline for the Buyer Bonus event. The deadline to enter into a contract will be July 31^st when the program ends, but the closing date will be negotiated by the buyer and seller.


8. Which home buyers are eligible for the Buyer Bonus?
   Unlike the Homebuyer Tax Credit which had income limitations and property eligibility requirements, all home buyers are eligible to participate in the Coldwell Banker Buyer Bonus Event. The key is to make a qualified offer on a participating property that the home seller accepts. Participants in the Buyer Bonus program are encouraged to contact their lender to ensure that participation will not adversely affect their financing.


9. How do sellers and buyers take advantage of the program?
   For home sellers, participation in the program can be arranged by contacting their Coldwell Banker Funkhouser Realtors agent. They’ll be able to help you evaluate the program’s benefits and facilitate the necessary paperwork. For buyers, they simply need to choose a home that is participating and sign an offer on or before the Event cutoff date of July 31^st, 2010.


10. How will a buyer know if a house is participating?
    Participating homes will display Buyer Bonus Event yard sign riders. Participating properties are flagged as Buyer Bonus Event Homes in the search results of CBFunkhouser.com. Ask you real estate agent to show you homes that are part of the Coldwell Banker Buyer Bonus Event.


11. Are all homes listed with CB participating?
    No. Participation is determined solely by the home seller on an individual basis. We are, however, encouraging widespread participation given the market situation and the heightened short-term need to provide home buyers with incentive. Any pricing decision is in the seller's sole discretion and is subject to negotiation between the buyer and seller.


12. Is the credit back at closing taxable income to the buyer?
    Each seller’s financial and tax situation is different. More importantly, Coldwell Banker Funkhouser Realtors agents are prohibited from providing tax or legal advice, so every seller should be advised to consult with their accountant and/or attorney to determine what effect the Buyer Bonus program may have.