CELEBRATION, Fla., Nov. 1, 2011 (GLOBE NEWSWIRE) -- Remember the lift that the government's 2010 home buyer tax credit program gave to the home building industry? One company has launched a new venture that could have a similar effect for the industry while depositing thousands of dollars into the pockets of new home buyers.
New Home Refunds Co, LLC, is offering anyone who purchases a new home from builders in its program a refund of 80% of its broker commission. With the average new home selling for about $272,000 right now, that amounts to a check of about $6,500 for the buyer.
"It's a simple proposition," says company spokesperson Ken Plonski. "In today's market, builders are competing against resales, short sales, and foreclosures and it all comes down to dollars. Buying a new home is simple. It doesn't require cash to fix it up, and it carries a warranty. When you include a significant cash rebate on top of that, it should move home buyers in the direction of new home builders and get them building again," he said.
The basis of the refund is equally simple. The company, licensed in Florida and Arizona, is willing to refund it clients 80% of its 3% broker commission. All new home buyers need to do is register at www.newhomerefunds.com, deliver copies of the registration form to participating builders, and notify his company once the home is closed. Checks are delivered about 14 days after closing.
With various multi-state reciprocation agreements, the refund program is currently available to new home buyers in eleven states including Alabama, Arizona, Arkansas, Connecticut, Florida, Georgia, Indiana, Mississippi, Nebraska, Oklahoma and Tennessee. The company hopes to add new states in the coming months.
According to Plonski, the program represents the kind of innovative thinking that the industry needs to start building homes again. "This program realigns some industry practices, but any new home builder can participate and immediately give themselves a leg-up on the competition. If you're a buyer looking at two almost identical homes in the same area and one of them will get you a check for $6,500 and a new home warranty, which one would you chose? I can't think of too many home buyers who wouldn't like a nice refund in this economy," he said.
The newhomerefunds.com website also gives participating builders an immediate opportunity to begin marketing themselves to prospective new home buyers. The site includes links to participating builder websites. Plonski says close to 90% of home buyers begin their search on the web. "We've got a name that will attract a buyer's attention and a program that will keep us well positioned for search engines," he said.
Buyers can use their refunds to purchase home furnishings, take a dream vacation, start a college fund for the kids or even pay off their credit cards. "The refund is theirs to spend any way they like," Plonski said.
While it may sound a little strange for a company to give away such a large percentage of its broker commission, Plonski says the company's business plan is based on volume. There were approximately 20,000 building permits issued for single-family and multi-family homes in Florida alone during the first six months of 2011 according to statistics from the National Association of Home Builders. "We have the potential to help builders sell more new homes. That will ultimately put more people to work and help stimulate the national economy. We think it's a lot easier to sell a new home to someone who has a job," he said.
To learn more about this new home refund program visit www.newhomerefunds.com or call 321-948-0356.
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