Set up: When we spoke on the phone, I mentioned that Wells Fargo Home Mortgage’s promise is all about working together to help you your business. Well, that’s what the Listing Edge SM program is all about. Listing Edge is a great tool to help buyers and sellers, and it will also help you – as an agent in a competitive marketplace – find your edge and accelerate your sales. Please see following notes pages for talking points. Follow the directions below to print your presentation with talking points and/or to give your presentation without showing the talking points. We recommend that you don’t read the slides bullet by bullet but instead use these notes to help move your presentation. To print the presentation with notes pages: Select “File” from the menu above. Select “Print” from the list of options. On the “Print” screen, go to the “Print What” drop down menu and select “Notes Pages” The slide and the corresponding notes pages will print. To show the presentation without notes pages: Select “View” from the menu above. Select “Slide Show” from the list of options. The slide show will appear on the full screen of your computer. Use your arrow keys to move the pages.
OPTIONAL QUESTION: (Use to connect with agent, and as lead-in to program benefits). Before jumping into the details, let me ask you: How are you marketing your properties? How are you differentiating yourself in the market? What are the biggest challenges you’re seeing in our market right now? AFTER DISCUSSION: No doubt, there are a ton of challenges in our market right now. It’s a tight market and there’s a ton of competition. Not to mention that one of the leading reasons a home-sale doesn’t close: Financing. Acknowledging these challenges is a good transition because the program I want to tell you about – Listing Edge – is all about helping you overcome these very challenges. And knowing these challenges exist means that it’s more important than ever for you to find an edge and to have a point of differentiation. Listing Edge is designed to do exactly that – so you can secure more listings, attract more buyers, and move more inventory.
The Listing Edge program offers you marketing and financing tools that can give you an edge by showing your clients and potential clients how you go above and beyond to sell their home – especially in markets where property values are declining and/or inventories are sitting too long.
As you can see, there are great tools to help you sell. Let me explain how each of these work.
This program offers you and the seller an alternative to lowering the price. Our FLEX/FIXED ® program allows sellers to pay a temporary buydown for the buyer, allowing the buyer to qualify at an initially reduced rate and monthly payment. This is especially beneficial since most buyers are looking for low, manageable payments. Let me show you how FLEX/FIXED works.
The first thing a seller wants to do in a tough market environment is drop the price. With FLEX/FIXED , there’s an alternative to help maintain the asking price and to further open up the buyer pool. Value to Buyer: The buydown can be of tremendous value for your buyer. It helps because they’re getting a great introductory rate, and one that they don’t have to pay for – thanks to the seller. And they can still have security of a 30-year fixed loan thereafter (if that’s what they choose). And of course, having a lower payment in the early years is particularly valuable when customers often need additional funds to support home improvements or big household purchases.u FLEX/FIXED : This is about using creative financing alternatives to benefit both your sellers and buyers. The first thing a seller often wants to do in a tough market is drop the price. But with FLEX/FIXED , we’re saying “let’s not drop the price.” It’s another tool that’s not widespread in the market that you can leverage to help sell a house and distinguish yourself at the same time.
OPTIONAL: 1. Do you have any properties on which you’re considering reducing the price? We know dropping the price is always an option, and given our market, we’re seeing this more and more. But I’d like to tell you that lowering a price is not always the best approach, and financing alternatives like FLEX/FIXED can be a big win for everyone. The above example compares the option of dropping the listing price by $10,000 vs. applying a 2/1 FLEX/FIXED buy-down. The example shows that a $10,000 price reduction is not necessarily more cost-effective for anyone – the buyer, the seller, nor the agent. For the seller, a price reduction immediately costs the seller $10,000 vs. $5,184 with the buydown. This is a savings for the seller of over $4,800. For the buyer, the price reduction lowers the monthly payment by only $60 or so per month vs. with the buydown, the buyer can save over $250 per month in the 1 st year alone and reduces payments by nearly $5500 over the buydown term. So, why not hold firm on the price, but at the same time, leverage flexible financing that can lower the buyer’s payment by $250 a month for a year on a $300,000 house? Now that’s a lower payment that can grab a buyers attention! And this way, everyone wins! BASIC BENEFITS: A WIN-WIN FOR ALL Seller : The seller wins because the buydown could save them money in comparison to a price reduction. In the above example, it could save them well over $4000. The seller is holding the price while passing on value to a potential buyer that makes the home more attractive – which is key in a slow moving market. The seller is conceding some, but much less than he/she would if dropping the price altogether. What an easy way for the seller to increase the number of potential buyers who qualify for the home, and to make their home more attractive through lower payments. Buyer : The buyer wins because they’re getting a great introductory rate that they don’t have to pay for. And they still have the security of a 30-year fixed (if they so choose). As you know, having a low rate in the early years can really help due to home improvements, and big household purchases. And in reality, they could also qualify for more house. And given that many buyers tend to move after 7 years or so, this could be a great advantage for them. Agent : You win too by not having your commission cut from a lower sales price. And more than that: you look like you’ve come up with a fresh idea. And as you seek out new listings, this is a tool that can be leveraged to help drive additional interest in your property. And it also enables you to go after listings that are about to expire.
Now let’s talk about all the great marketing materials that can help move your listings faster. (Note: HMC should bring sample to show agent). Promotional Flyers We typically place these in the house to help prospective buyers conceptualize how they can qualify for the home. So, once the buyer is in the house, understanding the financing options can help make their experience that much sweeter.
Special Invitation to Selling Agents: (NOTE: HMC should bring sample to show agent). What a great way to ensure your properties are getting maximum exposure! We develop a co-branded piece and send to 10 other top agents you select. Opportunity To Steal Listings: And while mentioning other agents, this program also enables you to go after listings that are about to expire. You can target those customers and take this program to tell them you have a fresh approach that’s worth trying on their house.
Yard Sign: The Wells Fargo name resonates with potential customers as a powerful and trustworthy brand. This is a great way to convert lookers into buyers. We know from experience that using the sign can drive more calls. Our financing options can help further expand the potential pool of customers. Note: You’d be surprised how many calls our yard signs generate. And we get those leads right back to you. MLS: Promoting that Wells Fargo Home Mortgage – the nation’s #1 retail mortgage lender – is offering special financing (or a special seller-paid buydown rate) through the MLS can go along way to helping expand your client’s buyer pool. Example MLS statements: “Special financing available through Wells Fargo Home Mortgage” or &quot;Seller-paid interest rate buydown offered to buyers financing through Wells Fargo Home Mortgage.”
So the Listing Edge program is just one of our unique programs geared to helping you grow your business and win in the market. There’s more in the Wells Fargo Home Mortgage arsenal that you’ll be glad you know about! Let me just take a few minutes and give you the highlights of our Stagecoach Priority ® Value Package.
I want you to walk away knowing that: No other lender is as committed as we are to helping you grow your business. No other lender offers what we offer. No other lender does it better than we do. That’s what the Stagecoach Priority program is about – delivering an exclusive package of benefits and services to help you take your business to the next stage.
Single Source ® Capabilities : What’s unique about working with Wells Fargo Home Mortgage is that you gain the power of an entire financial team to bring you the very best that we have to offer. In addition to my expertise, you can count on our Single Source capabilities – a team of specialists accessible through one lending relationship. We tailor our financing to your unique listings and to the unique needs of your buyers. So your buyers get the right financing solutions from professionals with the right expertise.
Priority Buyer ® Preapproval: As an agent, you’re busy enough. So make the most of your time by working with credit-checked, ready-to-buy customers who have a written Priority Buyer preapproval from Wells Fargo Home Mortgage. (It’s reliable, preapproved financing – in clearly specified loan amounts and terms – on official Wells Fargo Home Mortgage letterhead). It’s the easiest way for listing agents to separate firm leads from squishy offers. You’ll feel better knowing you’re dealing with serious buyers who have already completed the application, credit check, and first decisioning phase.
Close-on-time SM Guarantee: When it comes to closing loans on time, we’re leading the way. Nothing will give you or your clients the added reassurance like our industry-leading Close-on-time guarantee . If we don’t meet your client’s initial closing date as indicated in the original purchase contract, we’ll refund their first month’s mortgage payment (principal and interest). It’s that simple. It’s peace of mind for your customers, and another competitive advantage for you. We’re leading the way when it comes to closing loans on time, and that means delivery of loan proceeds for your customers, and your commission, when expected.
Buyer Connections SM Program: Buyer Connections is the umbrella program that helps our HMCs and their agents build business by creating a connection to current and future homebuyers, many of whom have not yet begun a relationship with a real estate agent. Wells Fargo has the technological capabilities and the commitment to connect buyers and sellers through local HMCs with real estate agents and builders who can assist them. What This Means For You?: Buyer Connections is a competitive advantage. Other lenders with similar capabilities typically route prospective homebuyers to representatives in their centralized platform versus sending them back to representatives in their local marketplace. When we route the leads back to the local market, it offers the opportunity to cultivate mutually beneficial relationships with agents and builders – resulting in better service to our customers.
Wells Fargo Home Mortgage is the founding sponsor of The Challenge TM . It’s a monumental mission that will expand homeownership opportunities for millions of Americans and tremendously increase your business-building opportunities. Together, we can educate and enable more people to reach their personal and financial goals. OPTIONAL DISCUSSION POINTS: Wealth Building Workshops Affordable Home Tours The Five Myths that Create Barriers to Homeownership SM Accelerated Ownership Plan SM etc.
So let me stop telling you “why Wells Fargo is your best choice as a financial partner,” and instead, share what everyone else is saying about us. REVIEW SLIDE: (with the following supporting points): Wells Fargo is one of the most powerful brands in the world. We serve over 26 million retail households. We’ve been around for over 150 years. We have the only AAA credit rating among banks. The company has had the 2nd highest total stockholder return among all S&P 500 companies that were part of the S&P 500 20 years ago and still are part of the S&P 500 today. What could speak louder to our stability, experience, and standard of excellence. This is important to know because as you team with us, this is what your association with Wells Fargo will communicate to your customers. So in essence, by working together, we both can become stronger. (The whole is greater than the sum of its parts).
Here are our rankings from 2006. You become #1 when you know what you’re doing. Wells Fargo Home Mortgage remains the #1 retail mortgage lender for 15 years straight. More consumers choose to finance their homes with Wells Fargo Home Mortgage than any other mortgage lender! I’m not sharing all of this to be pretentious. Listing Edge is all about our teaming together to grow our business, and that includes your ability to leverage our leadership position with buyers and sellers. In essence, you have the power to leverage our standing. Who better to team up with than the nation’s #1 retail mortgage lender? Why wouldn’t you want to make certain you’re working with a proven entity and the company more consumers have chosen than any other lender? It’s a testament to our stability, experience, and credibility! Conclusion: You need a competitive differentiator in the market now more than ever. Let Listing Edge help you grow your clients, and help you take your business to the next stage. Next Steps: Discussion on applying the Listing Edge program for existing and potential clients and listings.
The Listing Edge SM Program Gain Greater Exposure Increase Your Buyer Pool An Innovative Program From Wells Fargo Home Mortgage
It’s Competitive Out There <ul><li>At Wells Fargo Home Mortgage, we understand the challenges you face in today’s market: </li></ul><ul><ul><li>A market saturated with listings </li></ul></ul><ul><ul><li>Inventory takes longer to sell </li></ul></ul><ul><ul><li>Challenges to stand out in a very competitive market </li></ul></ul><ul><ul><li>Home financing challenges that can eliminate potential buyers </li></ul></ul><ul><ul><li>Frustrated sellers – disappointed when contract price is lower than asking price, and when property sits on market for months rather than weeks </li></ul></ul><ul><ul><li>Reduced commission due to reduced sales price </li></ul></ul>
Set Yourself Apart Even More! Introducing The Listing Edge SM Program <ul><ul><li>Secure more listings and retain current listings </li></ul></ul><ul><ul><li>Move more inventory faster </li></ul></ul><ul><ul><li>Differentiate yourself in the marketplace </li></ul></ul><ul><ul><li>Increase sign calls </li></ul></ul><ul><ul><li>Turn more lookers into buyers </li></ul></ul><ul><ul><li>Preserve your asking price </li></ul></ul>The Wells Fargo Listing Edge SM program offers you unique financing and marketing capabilities with the intent to give you the edge you need to:
The Listing Edge Arsenal <ul><li>Special financing options </li></ul><ul><li>Marketing </li></ul><ul><ul><li>Financing flyers </li></ul></ul><ul><ul><li>Co-branded listing invitations </li></ul></ul><ul><ul><li>Yard signs </li></ul></ul><ul><ul><li>Reference in the MLS that special financing is available </li></ul></ul><ul><ul><li>Other promotional tools </li></ul></ul><ul><li>Single Source ® financing expertise </li></ul><ul><li>Priority Buyer ® preapproval </li></ul><ul><li>Close-on-time SM money-backed guarantee </li></ul>
Special Financing To Increase Your Buyer Pool Introducing FLEX/FIXED ® Financing <ul><li>Don’t drop the asking price. Instead, offer a powerful incentive – our FLEX/FIXED ® financing option. It can lower the initial monthly payment, making the home listing more attractive and helping more potential buyers qualify. </li></ul><ul><li>This helps you to: </li></ul><ul><ul><li>Get and retain more listings </li></ul></ul><ul><ul><li>Save your sellers and buyers money </li></ul></ul><ul><ul><li>Differentiate yourself from the competition </li></ul></ul><ul><ul><li>Provide an alternative to reducing the price, which impacts your commission </li></ul></ul>
FLEX/FIXED Financing Attract More Buyers With Lower Payments Wells Fargo Home Mortgage has multiple buydown variations. These are example rates. Contact us for current rates. This temporary rate discount can help homebuyers start off with lower payments, and qualify based on the lower, initial rate. For example, with a FLEX/FIXED 2/1 buydown, a buyer’s payments would be based as follows: Year 1 – Fixed payments at 2% below their note rate Year 2 – Fixed payments at 1% below their note rate Year 3+ – Fixed payments at their note rate 1. These examples assume a 20% down payment on a loan term of 30-years, with 360 monthly principal and interest payments, total points of 1% and estimated finance charge fees as follows;, $750 for $300,000 loan, $1000 for $500,000 loan and $1200 for $1,000,000 loan. If the down payment is less than 20%, mortgage insurance may be needed and could increase the monthly payment and APR. These are the current rates for the loan product described for a single-family primary residence. Your loan’s rate will depend upon the specific characteristics of the loan transaction and your credit profile up to the time of the loan closing. 2. APR is for the entire term of the loan. 6% ( 5.909% APR ) 2 Monthly Payment: $5995.51 5% Monthly Payment: $5368.22 4% Monthly Payment: $4774.15 $1 million 1 6% ( 5.916% APR ) 2 Monthly Payment: $2997.76 5% Monthly Payment: $2684.11 4% Monthly Payment: $2387.08 $500,000 1 6% ( 5.921% APR ) 2 Monthly Payment: $1798.66 5% Monthly Payment: $1610.46 4% Monthly Payment: $1432.25 $300,000 1 Year 3+ Year 2 Year 1 Loan Amount
<ul><li>Seller Advantage Reduced Sales Price Vs. 2/1 Buydown </li></ul><ul><li>Original Price $300,000.00 $300,000.00 </li></ul><ul><li>Listed Price $290,000.00 $300,000.00 </li></ul><ul><li>Loan Amount (80% LTV) 3 $232,000.00 $240,000.00 </li></ul><ul><li>Cost to Seller $10,000.00 $5,184.00 </li></ul><ul><li>The 2/1 Buydown saves the seller $4,816 ! </li></ul>This example shows how lowering the sales price immediately costs the seller $10,000. That reduction results in a monthly loan payment of about $50 less than the buyer would have paid at the full sales price. But with a 2/1 buydown, the seller concessions are only $5,184 and the buyer’s monthly payments are reduced by $250.36 for the first year (compared to $50 at the reduced price). Plus, you can go to market with a 4.5% start rate! By offering the FLEX/FIXED financing, everyone wins! FLEX/FIXED Financing – A Win-Win For Everyone Wells Fargo Home Mortgage has multiple buydown variations. These are example rates. Contact us for current rates. 2. APR is for the entire term of the loan. 3. Both loan amounts assume 20% down-payment, 80% LTV. 4. This example assumes a 20% down payment on a loan amount of $232,000, a loan term of 30-years with 360 monthly principal and interest payments, total points of 1% and estimated finance charge fees of $750. 5. This example assumes a 20% down payment on a loan amount of $240,000, a loan term of 30-years with 360 monthly principal and interest payments, total points of 1% and estimated finance charge fees of $750. 6. If the down payment is less than 20% mortgage insurance may be needed and could increase the monthly payment and APR. This is the current rate for the loan product described for a single-family primary residence. Your loan’s rate will depend upon the specific characteristics of the loan transaction and your credit profile up to the time of the loan closing. 7. Total savings is calculated for years during which buy-down is in effect. Buyer’s Advantage Reduced Sales Price Vs. 2/1 Buydown Year 1 Interest 6.50% 4.50% Monthly P&I $1,466.40 $1,216.04 Year 2 Interest 6.50% 5.50% Monthly P&I $1,466.40 $1,362.69 Year 3+ Interest & APR 6.50% ( 6.629% APR ) 6.50% ( 6.420%APR ) 2 Monthly P&I $1,466.40 4,6 $1,516.96 5,6 In the first 2 years, this scenario reduces a buyer’s initial payments by $5,462 ! 7
Entice More Buyers Leverage Wells Fargo Home Mortgage Financing Flyers <ul><li>Help prospects better understand how they can qualify for the home by showing financing options that make homeownership possible. </li></ul><ul><li>Highlights how a temporary buydown can work to a homebuyer’s advantage. </li></ul><ul><li>Display during Open Houses. Attach to your listing flyers. Share at broker previews. </li></ul>
Gain Greater Exposure W ith A Special Co-branded Listing Invitation <ul><li>Attract top area selling agents with an invitation to preview the home </li></ul><ul><li>Fuel interest by promoting that Wells Fargo Home Mortgage offers special financing on this listing </li></ul><ul><li>Market yourself and further leverage the power the Wells Fargo brand has with consumers </li></ul>
Increase Calls W ith Yard Signs And MLS Statement <ul><ul><li>Leverage the power of one of the most recognized brands in the world. </li></ul></ul><ul><ul><li>• Wells Fargo Home Mortgage yard signs can increase traffic and calls on listings. And our flexible financing options can help convert more lookers into buyers! </li></ul></ul><ul><ul><li>• Take advantage of a simple and powerful way to immediately expand your buyer pool! Simply add a statement in the MLS that promotes the special financing Wells Fargo Home Mortgage offers on your client’s property. </li></ul></ul>SAMPLE
And there’s more… The Listing Edge program is just one of many benefits and services Wells Fargo Home Mortgage has developed to help real estate agents like you accelerate your sales.
Stagecoach Priority ® Value Package Start Building Your Business Today! From helping you source business, to approving your buyers, to closing your deals on time, our Stagecoach Priority ® program proves that what’s important to you is important to us: <ul><li>Right products for every homebuyer – count on our Single Source ® team </li></ul><ul><li>Reliable preapprovals – our Priority Buyer ® letter is like “cash in hand” </li></ul><ul><li>A great on-time closing record – backed by our Close-on-time SM money-backed guarantee </li></ul><ul><li>Business builders – let us introduce buyers and sellers to you through our Buyer Connections SM programs. </li></ul>
<ul><li>Connect your buyers to the right financing. </li></ul><ul><li>Our in-house expertise makes your deals happen quickly and smoothly. </li></ul>Single Source ® Team Makes All Kinds of Deals Happen.
Priority Buyer ® Preapproval It’s Like Cash In Hand – From A Brand You Can Trust <ul><li>Gives you credit-checked, ready-to-buy customers whose purchase power is confirmed in writing. </li></ul><ul><li>Lets you maximize the time and effort you spend showing and selling homes </li></ul><ul><li>Offers your clients reliable, preapproved financing, in clearly specified loan amounts and terms. </li></ul><ul><li>It’s the shortest distance between the opening bid and the closing table. </li></ul>
Close-on-time SM Guarantee An Industry Best <ul><li>We’re so confident in our on-time-closing capabilities that we back each eligible loan with a one-month mortgage payment guarantee . This means you can: </li></ul><ul><ul><li>Elevate your clients’ offers above others – especially when combined with our Priority Buyer preapproval. </li></ul></ul><ul><ul><li>Enjoy the ultimate in service recovery! On the rare occasion something happens, we make good by presenting your buyer with a big check! </li></ul></ul><ul><ul><li>Generate more referrals by recommending a lender who goes the extra mile and shares your client commitment. </li></ul></ul>Our Close-on-time Promise: “We will close your loan on or before the initial closing date as indicated in your original purchase contract or we will refund your first month’s mortgage payment (principal and interest).” 8,9 8. The original purchase contract must allow for a minimum of 10 calendar days between the date Wells Fargo Home Mortgage receives all required and complete application information and the initial closing date for conventional, prime, mortgage loan applications up to $1 million; and it must allow for a minimum of 21 calendar days between those dates for applications greater than $1 million. Not available on certain loan types. Other terms and conditions apply. Ask a Home Mortgage Consultant for details. 9. FHA regulations require a minimum cash investment from a borrower. Therefore, for payment under the guarantee for an FHA loan product, we’ll make a donation equivalent to your first month’s mortgage payment to a faith-based or non-profit organization of your choice. The recipient organization must have status under 501(c)3 of the Internal Revenue Code.
Buyer Connections SM Introducing Buyers And Sellers To You <ul><li>Every day we connect with homebuyers and sellers who aren’t yet working with a real estate professional. 26 million strong, the Wells Fargo & Company customer base includes: </li></ul><ul><ul><li>A half-million visitors each month to WellsFargo.com/mortgage </li></ul></ul><ul><ul><li>7.7 million mortgage servicing customers. </li></ul></ul><ul><ul><li>Regular contact with corporate affinity clients representing 20 million employees and more than 15 million members of various affinity groups. </li></ul></ul><ul><ul><li>Homeownership Days and other outreach to Wells Fargo Bank customers. </li></ul></ul><ul><ul><li>My personal Website </li></ul></ul><ul><ul><li>Customers touched through high-profile outreach efforts including The Great American Homeowner Challenge TM </li></ul></ul>
The Great American Homeowner Challenge TM <ul><li>We believe so strongly that owning real estate can help grow wealth over time, we’ve set out to show as many people as possible how they can buy as soon as possible. </li></ul><ul><li>As Founding Sponsor , Wells Fargo Home Mortgage has teamed up with #1 bestselling author and financial coach David Bach for The Great American Homeowner Challenge TM with a three-year goal of inspiring 10 million American to buy their first home, second home or investment property. 10 </li></ul><ul><li>Together, we can turn more renters into homeowners, and encourage more homeowners to build wealth by purchasing additional properties. </li></ul>10. The Great American Homeowner ChallengeTM and The Automatic Millionaire HomeownerTM are trademarks of FinishRich, Inc. These trademarks are used under license from FinishRich Media, LLC by Wells Fargo Home Mortgage.
Wells Fargo. One Of The World’s Most Respected Companies. Barron’s World’s 12 th Most Admired Company Moody’s Investors Service “ Aaa” credit-rated U.S. bank (highest rating) Standard & Poor’s “ AAA” credit-rated U.S. bank (highest rating) The CRO Magazine Top 50 companies for Corporate Citizenship BusinessWeek Top 25 Best Places to Launch a Career Working Mother Magazine 100 Best Companies for Working Mothers DiversityInc. Magazine Top 20 Companies for Diversity Forbes Nation’s 5 th Most Generous Corporate Foundation