Main Ideas

1. Getting More Business with the $8,000 Tax Credit and Your First HomePresented by Maggie Crosby-LeBlanc New Bern, NCTeam Leader

2. Main Ideas • Understand the $8,000 tax credit – it’s a GIFT for first-time buyers, but it EXPIRES soon. • Leverage the tax credit to create urgency. • Write an action plan and drive your lead generation through niche groups of first-time buyers. • Leverage Your First Home (presentation and book) to educate your community and generate more first-time buyer business.

3. Why work with first-time buyers? • They get $8,000 if you find them a home. • First-time buyers can often become repeat customers or powerful referral sources. • They give you an opportunity to increase your productivity right now. • They also have a direct stabilizing impact on their communities and the broader economy.

4. 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.

5. 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.

6. Understand the $8,000 Tax Credit • Gift only available to first-time buyers. • Expires at midnight on November 30, 2009. • Requirements to Qualify: • Buyer must not have owned a principal residence in last three years. • Buyer income cannot exceed limits. • Purchased home must be held as principal residence for three years.

7. 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.

8. 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.

9. Four steps to getting more first-time buyer business • 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.

10. Four steps to getting more first-time buyer business • Step 1: Expand your sphere of influence • Meet local groups and associations: • Teachers • Firefighters, Police Officers • Military and Veterans • Healthcare Professionals – Nurses, EMTs • College students or graduate students • Mine your database • Who have you helped in recent years and months? • Ask for referrals– buying age children of your clients • Target mets – Who do you know? Who do they know?

11. Four steps to getting more first-time buyer business • 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-endrentals (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

13. Four steps to getting more first-time buyer business • 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.

14. Four steps to getting more first-time buyer business • 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.

15. Four steps to getting more first-time buyer business • 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.

16. Four steps to getting more first-time buyer business • Success stories: THIS WORKS! • Shayla in Corvallis, Oregon • Tisha in New Bern, North Carolina

26. Four steps to getting more first-time buyer business • 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.

27. Four steps to getting more first-time buyer business • 7 reasons for buying in 2009: • First-time buyer tax credit($8,000 or up to 10% of the cost of the purchase) • Mortgage rates remain nearhistorical low (around 5.6%). • Best affordability and prices since 2003-2004 • Better choice of inventory – distressed, resale, new • Motivated sellers may be more willing to give concessions • Federal, state, and local grant or assistance programs • Low down-payment programs – FHA, VA

28. Median Home Price (in thousands)

29. Four steps to getting more first-time buyer business • Step 4: Create buyer urgency • Overcome reluctance. • Dispel myths and fears about buying. • Be sure your buyers are truly able, ready, and willing. • For more information, refer to SHIFT Tactic #9: Create Urgency – Overcoming Buyer Reluctance.

30. Getting More Business with the $8,000 Tax Credit and Your First Home • Action Steps for Success • Create a plan and time block for lead generating to FTB. • Educate yourself about federal, state, and local incentives and work with lenders to identify special financing programs available for first-time buyers. • Prospect and market to select niche groups of first-time buyers and schedule monthly first-time buyer seminar dates through November. • Read and master Tactic #9 in SHIFT. • Download the free presentation and worksheets at http://www.millionairesystems.com/msys/FD.html. • Order copies of Your First Home at www.millionairesystems.com.

31. Resources • 1) www.kw.com/kw/2009TaxCredit.html • 2) www.federalhousingtaxcredit.com • 3) MillionaireSystems.com

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

33. www.federalhousingtaxcredit.com

34. www.MillionaireSystems.com

35. www.MillionaireSystems.com

36. www.MillionaireSystems.com • 1. Download the customizable first-time buyerpresentation. • 2. Order copies of Your First Home book. • 3. Download, review, modify Worksheets.

37. 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.

38. 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 support@millionairesystems.com