Episode 7 Transcript – Real estate marketing cash-back incentive
Hello there! You’ve got Jessi Johnson live and I have the word of the day. I’m getting a lot of response from realtors that I work with as well as people listing their properties. They’re not moving right now. It’s definitely turned into a sellers market. The rates are still great, there is still an abundance of properties on the market but people selling properties and realtors listing properties are not doing so hot. I have an idea. I’ve done this on a few project sites which I’ve managed and private detached homes. What you can do is work out your selling price. So if you are the individual selling the property, say your property is $400,000, you work out a bottom selling price that you want to get $400,000 for, so you list it at $425,000. What you do is change your bottom line to $410,000 and when you do your negotiations with the potential clients, that’s the lowest you are going to go is $410,000. You do your marketing, your calculations with whatever the standard mortgage payment is whether it’s a 4 year amortization. You obviously want to do higher amortization or interest only mortgage for your promotion because that is going to have a lower monthly payment. What you do is with this $10,000 cash back, you don’t use that for a down payment because that would be illegal. You take that $10,000, you divide it by 24 months and that works out to $416.67. You offer as your incentive, a monthly payment reduction of $416.00. So on a $400,000 property, on an interest only mortgage you are looking at around $1277.00 not including Strata. You knock off another $416.00 that’s like $860 payments for the first two years. Put that on an amortization as a promotion. If that doesn’t help sell your property I don’t know what does. Knowing I can buy a brand new townhouse worth $400,000 for $860 a month, of course with 10% down. No big deal. Either way there is a lot more variations to that particular calculation that I would be happy to help you with. You can reach me at www.firsthomeinfo.ca. You can drop me an email or give me a phone call and we’ll touch base very soon. Again, it’s Jessi Johnson and have a good day!
