Guaranteeing value for nervous West Coast homebuyers has transformed a market mired in a glut of inventory into the goose that laid the golden egg for one B.C. broker.
“Has it helped me get business? Most definitely!” says Shane Ballard of Verico
Complete Mortgages. “Inventory is so high and sales are so low right now – the timing couldn’t be better for this plan.”
The plan is the brainchild of Greg Williamson
’s 180 Degrees Solutions, who devised the Buyer Protection Plan to guarantee homebuyers the value of their purchase for one year.
“I’ve seen so many deals fall apart that were only $10,000, $15,000 or $20,000 apart between the buyers and sellers,” says Ballard. “During the market heyday, of eight potential deals out there we were closing on six or seven. Now, the average is two or three.”
The Buyer Protection Plan, launched in January, is designed to protect the buyer for 12 months against a reduction in market value of the home, as the seller places five per cent of the sale proceeds into escrow for a year, guaranteeing market value. If the market falls one to five per cent, then the buyer and seller share the escrow funds proportionally. If there is no loss in market value, the seller reaps the entire five per cent.
“We are currently at the stand-off phase of this market,” says Williamson, founder of 180 Degrees Solutions. “Buyers wait until sellers drop their price… at the same time sellers are holding on to yesterday’s market reality and are stubbornly refusing to reduce their prices.”
Greg Williamson took his buyer protection plan to CTV Vancouver’s consumer show “Steele On Your Side” just recently, spreading the word on how he is able to pull nervous home buyers off the sidelines and into the market. He will also be sharing his innovative approach at the upcoming Mortgage Summit on May 9 and 10 in Toronto.