BUILDERS' BETTER BUYDOWN

The Closing Factor has been specially configured to meet the needs of home builders. The Builders' Better Buydown is a multi-purpose tool, which can be used to meet your immediate needs.  BBB can be applied to close a sale in a buyers' market. It can increase your profits in any market.  It will encourage buyers to add quality features to their new home through your profit-producing design center.  Once those features are added, the buyer is much less likely to back out of the deal. BBB will put you in control of the buyer's mortgage process.

PROTECT INVENTORY VALUES
The Builders' Better Buydown can stop that prospective Buyer from walking away by lowering his interest payments. This marketing tool can be a useful alternative to cutting the price of early phase homes. Here's an example:

Conventional Financing The Builders' Better Buydown

Using the Builders' Better Buydown reduces monthly
payments by almost 20% for 3 years!

ENCOURAGE DESIGN CENTER USE
Here’s an example that you can change to match your circumstances. Enter the price of the home and the amount of the Builders' Better Buydown subsidy, then hit “Calculate” to see how it can work for you.

List Price: $  (Do not use commas)

Builders' Better Buydown Cost: $    

Buyer can afford Design Center Upgrades of $ 
by borrowing more with no increase in monthly payments.

If your gross profit on upgrades averages 60%,
your additional profit after the Builders' Better Buydown cost is  $ 

With BBB, the Builder generates profits as amenities are added.  The Buyer can finance them over 30 years, but they cost him nothing for the first few years.

With a Design Center Credit, the Builder simply gives up revenues and profits.

MINIMIZE RESCISSION RATES
Rescission rates have been proven to decrease after buyer customization through the design center because buyers establish an emotional connection with the home.