Real Estate Advice Column
- Thread starter Liar Loan
- Start date
NEW -> Contingent Buyer Assistance Program
I flew out to Houston to see my Porsche dealer in Oct of last year on Tuesday afternoon.
Data is located here. https://www.ocair.com/archive/statistics/2022/
Not quite, UA flies SNA-EWR a few times a day and AA flies their 321T premium transcon product to JFK (and apparently yields are down but 1x/daily is kind of a joke of a business frequency).
But it's the other destinations that require connecting that annoys me. I fly at least once a month on average to other places like DCA, BOS, MIA, MCO, PHL. I'm not asking for a gigantic megahub like LAX, but El Toro could have been substantially bigger with a runway to accommodate more planes and more frequencies. I think El Toro could have been a SAN-sized airport with destinations to match.
Yes, the route ends next month. I was planning on taking it for Spring Break, but now looking at WN out of LGB.
Yes, all builders are providing buyer agent commissions now. The quicker move-in homes are offered an even higher than normal broker co-op (agent) commission. The rule is that on your first physical visit you do have to go with your agent to register in order for your agent to qualify for the commission.
You can try but the buyer agent commission comes from a different budget pool than other incentives. Remember that design center credits are worth about 50 cents on the dollar at max because most of the options are overpriced and a financed buyer can only use up a closing cost credit of up to their closing costs so there's a limit there. The builder is be loathe to reduce the price by the buyer agent commission because it'll mess with their closed comps. A commission rebate from the agent to the buyer is non-taxable and given right after closing so they can use it for whatever they want and there's no limit to the rebate (yes, agent registrations do state the agent will not give any of the commission to the buyer in escrow or after close but I'd love to see any builder enforcing that against an agent who gives a rebate to their buyer after closing).
That would be considered equity and the lender will not allow for that. Credits to the buyer are limited by the lender to actual closing costs, any amounts over the actual closing costs are considered equity and are disallowed by the lender.
You could try but as you keep buying down the interest rate the buydown to the next 1/8% down gets exponentially expensive plus I always tell my clients to never buy down their interest rates and wait to refi when rates go lower because they almost always do.
sleepy5136
Well-known member
There are still direct flights to HNL from SNA. You have to leave and arrive on a Saturday. Only United Airlines though
usctrojancpa
Well-known member
I flew out to Houston to see my Porsche dealer in Oct of last year on Tuesday afternoon.
nosuchreality
Well-known member
Last month with Data is October which is 23% higher than pre-pandemic level.
Data is located here. https://www.ocair.com/archive/statistics/2022/
Hugo Township
Active member
Not quite, UA flies SNA-EWR a few times a day and AA flies their 321T premium transcon product to JFK (and apparently yields are down but 1x/daily is kind of a joke of a business frequency).
But it's the other destinations that require connecting that annoys me. I fly at least once a month on average to other places like DCA, BOS, MIA, MCO, PHL. I'm not asking for a gigantic megahub like LAX, but El Toro could have been substantially bigger with a runway to accommodate more planes and more frequencies. I think El Toro could have been a SAN-sized airport with destinations to match.
woodburyowner
Well-known member
Yes, the route ends next month. I was planning on taking it for Spring Break, but now looking at WN out of LGB.
CalBears96
Well-known member
I remember someone mentioned buying at Solis Park and they gave agent commission. However, you do need to bring the agent the first time you visit and give Lennar your information. You would fill out the agent's name, company and contact info.
usctrojancpa
Well-known member
Yes, all builders are providing buyer agent commissions now. The quicker move-in homes are offered an even higher than normal broker co-op (agent) commission. The rule is that on your first physical visit you do have to go with your agent to register in order for your agent to qualify for the commission.
Mawesome Sauce
Member
Is there a way to just negotiate they give that commission to you instead if you register with no broker.
irvinehomeowner
Well-known member
It's for brokers only. Just need to find one who will give you some or all.
Mawesome Sauce
Member
That’s poor business practice then. It’s a new home. Why not give me more if I don’t bring a broker with me.It's for brokers only. Just need to find one who will give you some or all.
It's an incentive for brokers to bring them more customers.
usctrojancpa
Well-known member
You can try but the buyer agent commission comes from a different budget pool than other incentives. Remember that design center credits are worth about 50 cents on the dollar at max because most of the options are overpriced and a financed buyer can only use up a closing cost credit of up to their closing costs so there's a limit there. The builder is be loathe to reduce the price by the buyer agent commission because it'll mess with their closed comps. A commission rebate from the agent to the buyer is non-taxable and given right after closing so they can use it for whatever they want and there's no limit to the rebate (yes, agent registrations do state the agent will not give any of the commission to the buyer in escrow or after close but I'd love to see any builder enforcing that against an agent who gives a rebate to their buyer after closing).
Mawesome Sauce
Member
Would a reduction in the loan balance work similarly? Assuming you use the lender partnering with a new builder, asking for the referral credit to go to loan seems like a win win.
usctrojancpa
Well-known member
That would be considered equity and the lender will not allow for that. Credits to the buyer are limited by the lender to actual closing costs, any amounts over the actual closing costs are considered equity and are disallowed by the lender.
Mawesome Sauce
Member
Hmmm. makes sense. How about points then? We could ask builder to load up on points?
usctrojancpa
Well-known member
You could try but as you keep buying down the interest rate the buydown to the next 1/8% down gets exponentially expensive plus I always tell my clients to never buy down their interest rates and wait to refi when rates go lower because they almost always do.