Entry by Glenn Freezman

Nucazza LP to Work with Philadelphia Area Lenders to Show Them How to Identify and Work with Prospective Home Buyers

  13 Comments
Lenders often lose their home buying customers to their competitors because they can't easily identify them. Nucazza was created to help lenders make a connection with their home buying customers early on in the home buying process. By providing education to home buyers that includes a study of Alternative Compensation Agreements that save home buyers thousands of dollars.  http://www.prweb.com/releases/prweb2011/8/prweb8747997.htm

13 Comments

Again, I encourage all ACREs to click the link, to see how you worded this article It provides good ideas for a dialog with buyers.

One of the press releases has this statement:

"This means that home buyer buying a $400,000 home gets the 3% commission payment, or $12,000 that had been earmarked to the Agent for the Buyer, back at closing or off the home’s selling price!  This is a huge discount!"

I believe those statements are a bit misleading. It's actually saying that they get the entire $12,000 as a discount, and we all know that is not correct.

They have paid for the services, and depending on what they've selected as services, their up front costs may be as high as $10,000, so the discount is only $2,000 in that case.

IMHO, statements like that can lead buyers to expect much more than they will actually get, and it may make it difficult for the buyers agent to explain that they do not get a $12,000 "discount' for a $400,000 purchase.

 


Good point Bill. I think we all need to be vigilant about not being misleading in any way. There are so many bargain-basement outfits out there that promote "something for nothing" and we need to be very clear and transparent that we offer quality choices, not schemes.

I know that Glenn agrees with these principles so it might be a good idea to change that copy a bit.

Bill and Mollie, We look at it as a point, they are getting the entire commission back, they paid you a contract consulting fee therefore there is no commission.  They can IN FACT reduce the price of the home by the entire commission since they have already paid their buyers agent in full.  They can receive all 12k back at closing, you've been paid.  OUTSIDE THE BOX REMEMBER?

I understand your thought process Glenn, but it IMHO, it should still say something like "save $12k less the direct fees" or something like that. Being straightforward in advertising does not mean that we're not thinking out of the box, just being transparent.

Does it make sense, to go to other Citibank branches in our area, and make a presentation and also mention that Nucazza is already working with Citibank branches.  I have a nice presentation already prepared for banks.

With what department within Citibank should I speak? I know that many branch banks just refer you to a central dept?

 

Branch by branch Lester, they will not back it corporate until the branches prove the model works.

WELL, UNFORTUNATLY, THIS ONE IS GONE  I can’t recant it, it is done.  We will be doing PR releases every day for the next 120 days, I spent 6k to get this word out.  If they call and complain at least they called.  If you can think of streamlined wording, I can go with it in the future. 

Maybe you can say, the borrower/buyer gets a rebate of commissions less any outstanding consulting fees.  Since each situation is different, maybe we do not need to say more.  From a marketing standpoint, we do not want to answer all their questions, until we have the opportunity to speak with them individually.

From a marketing standpoint, MAKE THE PHONES RING, MAKE THE FACEBOOK PAGE BUZZ, MAKE THE GOOGLE BOTS FALL IN LOVE, GET THE WORD OUT.  What is the concern for the details if we dont get to explain them.

Glenn, it's a big concern if the amount of "huge discount" that was stated is false. I would go so far at to say it's false advertising because it's actually stating that they get a huge discount of 12k on a $400k home. And that is not correct.

False advertising is the use of false or misleading statements. As advertising has the potential to persuade people into commercial transactions that they might otherwise avoid. 

False advertising, in the most blatant of contexts, is illegal.

I would not want a buyer to come to me after seeing that marketing piece, thinking they're going to get a huge savings of 12k on a 400k when in fact they are not.

Maybe I'm all wet, but I prefer pure clean honesty, and don't want anything to do with misleading marketing.

 

Bill, I respect your opinion, and if your not wet yet WAIT UNITL THIS WEEKEND, I can assure you, you will be.  I will battle with the wording on future releases, as I stated this one is gone, I cannot get it back.  The buy side is extremely convoluted on who pays what.  IF everything we "KNOW TO BE FACT" about commissions is true, that the seller pays them, why is it misleading to tell the buyer he wont be?

Glenn, you're playing with semantics with me. I'm just giving my opinion on what is to me false advertising. That piece is gone, as you say, so we'll see what the wording is on the next one.

This page contains a single entry by Glenn Freezman published on August 26, 2011 10:14 AM.

Family Abstract to Offer Free Seminars to Philadelphia Area Citibank Home Buyers Showing them how to Save Thousands of Dollars on Their Next Home was the previous entry in this blog.

Keller Williams is the next entry in this blog.

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