CASE STUDY: How Scott Nicholson Helped a Realtor Sell A Home That Had Gone Cold With a Seller Buydown Strategy

Scott Nicholson of South Pacific Financial in Brea, California has a failsafe method for selling houses that have gone cold.

BIG IDEA:
Increase Commissions With a Seller Buydown strategy
Scott recently conducted a seller buydown that saved a buyer $1,444 per month, compared with a $30,000 price reduction that would have only saved the buyer $150 a month. In this call, Scott reveals how he structured the deal.

THE CHALLENGE:
This home had been on the market for 7 months. The seller had already reduced the purchase price by $75,000 and was getting ready to reduce the price by another $30,000.

THE SOLUTION:
With Scott’s unique seller buydown strategy and the way he packaged it, they were able to sell the home in just two weeks. In addition, by applying the $30,000 to a buydown rather than a price reduction, the Realtor was able to sell the home quickly and double-end it in the process. In this type of scenario, everybody wins. Scott won new referrals by bringing innovation and leadership to his Realtor. The seller sold the house without a price reduction; and the buyers saved $1,319 a month, which allowed them to afford a home they might not have been able to otherwise.

KEY TAKEAWAYS FROM THIS CASE STUDY:

• Learn how Scott started by calling on a realtor partner who trusted his advice. This helped him get a face to face meeting and present his idea.
• Learn how Scott packaged a presentation for a specific listing that wasn’t selling, Scott showed the realtor how he could save the buyer 8 times more money per month over a price reduction — a $1,444 savings — without sacrificing the selling price or the realtor commission.
• The net result: the house sold within days using Scott’s buydown strategy.
• In addition the buyer benefited from the tax deduction of being able to write off the prepaid points to buy down the interest rate.
• See examples of Scott’s brochure and strategy in the accompanying PDF. You can follow along and see the difference in the three options he presents in the Total Cost Analysis report and hear why the third option is the clear winner. 

With Scott’s strategy, you’ll be able to help Realtors sell more homes faster during a challenging marketplace, resulting in new commissions for yourself and your Realtor partners. In addition, buyers’ agents can also use this strategy to help their home buyers purchase homes that they previously would have been unable to afford. It also increases the cash in the homeowner’s pocket with the significant tax benefit of having the seller pay for the buydown.

Bottom line: In a marketplace where success doesn’t come easily, this strategy will give you the ability to have more control. Master this strategy and start controlling tomorrow’s success today.

Click on the player below to listen to the first interview between Dave Savage and Scott Nicholson.

Click on the player below to listen to the follow-up interview between Dave Savage and Scott Nicholson.

or you can download grab the 17Mb file here

Click here to download a sample of Scott’s actual presentations.

Click here to contact Scott Nicholson with follow-up questions.

Comments

[Sheldon Steven Glatt]

Excellent idea. Surprisingly enough, I know about the buyer's tax benefit when there is a seller's concession, just never applied it. Get so involved in so many things. Now I will

Thanks.

[Phil Caulfield]

My CPA told me that the buyer can take the deduction to buy down the rate even though the seller has credited for it. However, the credit reduces the cost basis of the home purchased, which could have capital gains tax implications down the road. This still is an excellent strategy - I just think that the impact on the cost basis needs to be talked about with the buyer.

[S. S. Glatt]

Does the tax benefit apply only to that part of the seller buydown that applies to the interest rate reduction (points)or to all closing costs as well?

[Steve Wales]

Is Scott's first call available as a .mp3 download?

[larry bye]

How is the credit/concession for the rate buy down shown on the purchase contract?