Our post, Goodbye $8,000 Tax Credit, Hello $32,000 Savings! was a big success. I’ve received hundreds of emails from agents around the country relating how this thought has really helped them with their clients; some have asked us for a script… here it is:
Mr. / Mrs. Jones,
I understand that you were looking to buy a home but were discouraged because you didn’t find one in time to take advantage of the $8,000 tax credit?
If you knew that you could still save $8,000 you would still be looking to move, right?
By not taking advantage of the tax credit you saved much more than $8,000.
Can I explain?
In March and April of this year (2010), when the tax credit was available, interest rates were around 5.25%-5.5% on a $417,000 conforming loan. Today… interest rates are much lower… in fact, they are anywhere from 4.25-4.5%. This means that you’re saving saving 1 full percent!
Let’s assume that today you purchased a home and took out a mortgage for $400,000, with the 1% decrease in the interest rate, the first year alone you have saved roughly $4,000. After 2 years, you’ll have saved $8,000, the same amount of that tax credit.
Now, the best part of this is that every year, you’ll be saving $4,000! The average person stays in their home for 6-10 years. So, let’s say that you bought this home and lived in it for 8 years, you’d be saving, an extra $32,000, four times that amount of the tax credit!
Obviously, you agree that the current low interest rates will save you a lot of money, right? These low rates won’t last forever… now is the time for you to buy. Let’s set a time to get together, which is better for you… Tuesday at 4:00p.m. or Wednesday at 6:00p.m.?
I blogged about this very same idea about a month after the tax “break” thing expired – though my local market’s numbers don’t match the example above, they sure were good enough to show, on paper, that waiting until AFTER the tax credit was useless was the better move to make … https://www.riverbankstocornfields.com/2010/05/27/tax-credit-schmax-schmedit-buying-after-april-30th-is-smarter/
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Neil Schwartz Reply:
September 21st, 2010 at 6:27 PM
As long as the savings is over $8,000, I think the conversation can be effective.
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Great Script! Thank you very much for putting it together. Greatly appreciated!!!
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Neil Schwartz Reply:
September 21st, 2010 at 6:28 PM
Glad you thought it was useful. Don’t forget to let us know how it works out for you.
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Neil, Great script will use on this weeks presentation thank you for your support!!!
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Neil Schwartz Reply:
September 21st, 2010 at 6:28 PM
My pleasure Manuel, hopefully it works out for you.
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Neil, excellent idea to create win-win.
Since the saving for the payment is almost $3,000.00 , not $4,000.
How about modify a little on the script : After 3 years, you’ll have saved $9000 , more than the $8,000, tax credit. ……..
So, let’s say that you bought this home and lived in it for 10 years, you’d be saving, an extra $30,000, About four times that amount of the tax credit!
I wonder since only 25% of the clients are analytical and may pay attention like this, would the $3000 and $4000 difference ever come up as an issue in real life after the transactions, what do you think?
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Neil Schwartz Reply:
September 21st, 2010 at 8:18 PM
Sounds like you are part of the 25% analyticals lol!
This script is a concept that most of your clients will not over analyze. It needs be delivered in a way so your clients understand that they will save money by buying now and missing a great opportunity that is definitely not going to be around much longer. Talk to a few hundred people next month and let me know the responses you get.
Looking forward to getting more of your feedback 🙂
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Neil, you are the master of scripts! This is a powerful, simple to understand explanation as to why NOW is the best time for buyers to take advantage of the current market! NOTE TO ALL AGENTS: USE THIS and help yourself to all the opportunity that comes your way! Thanks, Neil, for your tremendous contribution! Keep ’em coming!
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Neil Schwartz Reply:
September 21st, 2010 at 6:30 PM
Absolutely Susan, I’m happy to hear you like it. It’s so simple and easy to use that it becomes a no-brainer for agents, doesn’t it?
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hello – is it just me !! can any one explain why when i type in the bing browser “www.neilschwartz.net” i get a different site yet whe i type it in google its ok? could this be a bug in my system or is any one else having same probs ?
alfie saden
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Neil Schwartz Reply:
January 5th, 2012 at 7:24 PM
You mean when you use the Bing search engine in your browser? When I got to Bing.com and search NeilSchwartz.net I get our website. Maybe the question is why do you use Bing?
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