And so it begins...Irvine Pacific begins Broker Co-op for 2011 Home Collection

NEW -> Contingent Buyer Assistance Program
usctrojancpa

usctrojancpa

Well-known member
As I correctly predicted (a little earlier than I thought), Irvine Pacific is now offering a $20,000 broker co-op for the San Marino homes.  I literally got the email about 10 minutes ago from TIC.  I guess I know why they wanted my business card when I was over there with a buyer when they weren't offering a broker co-op.  Expect that they will be following this with broker co-ops for the Stonegate developments and Laguna Altura developments.  The next thing to spur sales will be buyer incentives (i.e. credits for using their lender and/or design center credits).  Told you guys, your patience will be rewarded!  ;)
 
Houston, we have a problem........a SLOW SALES type of problem.  San Marino has hit MLS, Redfin hasn't updated yet but I see it on MLS....27 Rolling Green.

Note to all the TIC lurkers out there, if you want to really start selling these homes you better bring on some buyer incentives.  If you offer it, they (buyers) will come!  ;)
 
What happens to prospective buyers that went to the sales office w/o a broker?  Can they now be represented by a broker and get a cut of the commision?
 
ak said:
What happens to prospective buyers that went to the sales office w/o a broker?  Can they now be represented by a broker and get a cut of the commision?
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I'm sure they can, especially if they didn't give out all their information to sales people over there.  But even if they did, I'm sure that the sales people aren't gonna turn away any sales over a small broker co-op.
 
Well I gave out all my info registering online for San Marino.  Hope this doesn't kill my opportunity to be represented by a broker cause I can sure use some of the commission for upgrades.  Also, do you know when they will be giving out some upgrade incentives??  You seem to have a good handle on timing these events. 
 
ak said:
Well I gave out all my info registering online for San Marino.  Hope this doesn't kill my opportunity to be represented by a broker cause I can sure use some of the commission for upgrades.  Also, do you know when they will be giving out some upgrade incentives??  You seem to have a good handle on timing these events. 
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I think it's fine if you've pre-registered and/or pre-qualified online with them (my buyer did that), you should still be able to bring an agent in and split the broker co-op with them.  You should be able to use your cute of the broker co-op for upgrades and/or closing costs.

Usually the first thing that a stubborn builder will begin to offer is a broker co-op to spur slow sales, if that doesn't do the trick the next thing will be an upgrade incentive of some amount if you use the builder's in-house lender (give it a month or two before they offer that up).  Then they'll begin to offer upgrade incentives without going through the in-house lender.  The absolute last thing they'll do is lower the price of the homes (this typically happens when they have standing inventory or completed but not sold homes). 
 
USCTrojanCPA said:
1 - Usually the first thing that a stubborn builder will begin to offer is a broker co-op to spur slow sales
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USCTrojanCPA said:
2 - ...the next thing will be an upgrade incentive of some amount if you use the builder's in-house lender (give it a month or two before they offer that up). 
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USCTrojanCPA said:
3 -  Then they'll begin to offer upgrade incentives without going through the in-house lender.
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USCTrojanCPA said:
4-  The absolute last thing they'll do is lower the price of the homes (this typically happens when they have standing inventory or completed but not sold homes).
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did all or what percentage of the 2010 collection do you think get to the last stage? 

if not all of the 2010 collection got to the last stage what percentage do you think got to the 3rd or 2nd? 

did any projects sell out without giving anything up? 

(i'm not expecting anyone to know the exact numbers... but guesstimates would be appreciated) 
 
To clarify, does this mean every home in the San Marino development is know ok for a broker co-op or is it for just the ones on the MLS/redfin?
 
ak said:
To clarify, does this mean every home in the San Marino development is know ok for a broker co-op or is it for just the ones on the MLS/redfin?
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From the email that I received it seemed that the broker co-op was for every home. 
 
USCTrojanCPA said:
Usually the first thing that a stubborn builder will begin to offer is a broker co-op to spur slow sales, if that doesn't do the trick the next thing will be an upgrade incentive of some amount if you use the builder's in-house lender (give it a month or two before they offer that up).  Then they'll begin to offer upgrade incentives without going through the in-house lender.  The absolute last thing they'll do is lower the price of the homes (this typically happens when they have standing inventory or completed but not sold homes).
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Las Colinas in PS is already at the co-op and incentive mark.  They have four homes that will be completed in June and two more in Oct.  With the upcoming lower conforming loan limit to $625 on Oct 1, this may spur builders to lower the price sooner (wishful thinking).
 
Terran said:
USCTrojanCPA said:
Usually the first thing that a stubborn builder will begin to offer is a broker co-op to spur slow sales, if that doesn't do the trick the next thing will be an upgrade incentive of some amount if you use the builder's in-house lender (give it a month or two before they offer that up).  Then they'll begin to offer upgrade incentives without going through the in-house lender.  The absolute last thing they'll do is lower the price of the homes (this typically happens when they have standing inventory or completed but not sold homes).
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Las Colinas in PS is already at the co-op and incentive mark.  They have four homes that will be completed in June and two more in Oct.  With the upcoming lower conforming loan limit to $625 on Oct 1, this may spur builders to lower the price sooner (wishful thinking).
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When the homes are completed and just sitting there, that's when the buyers have the most leverage with the builders.  Two very scary and unpleasant words for builders are "standing inventory."  I would be willing to venture that the price of those Las Colinas homes is negotiable at this point, in addition to them probably be willing to throw in landscaping for buyers.  When there is blood in the waters, buyers should take advantage of it.
 
Terran said:
Las Colinas in PS is already at the co-op and incentive mark.  They have four homes that will be completed in June and two more in Oct.  With the upcoming lower conforming loan limit to $625 on Oct 1, this may spur builders to lower the price sooner (wishful thinking).
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That's a good point, the $625K jumbo conforming limit reduction is supposedly in effect on Oct 1 (unless extended).  So for the homebuyers that need the 729K limit, they'd have to close on or before Oct 1st?  Otherwise anything after that would be private market jumbo rates, unless they reduced the loan to 625K.

That's going to be a tough sell for the entire 2011 collection.  Please have your 400K+ downpayment when you close on your San Marino home.. cough cough.  Then to pony up another 40-100K for upgrades and landscaping. 
 
I wonder how much the 625k jumbo conforming limit reduction will affect the SFRs priced at the 800k sweet spot.  With 20% down, the loan will be $640k.  The buyer would just need to add 15k more to their down payment to get under the limit.  I don't think 15k will affect many people who are able to save $160k required to begin with, but that's just my opinion.  Any other thoughts?
 
so any guesses as to when Maricopa @ SG will start offering broker co-op?  Also, if Los Colinas @ PS might offer front and rear landscaping would this be a credit at closing or how does this typically work? 
 
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