How Does The Genesis Program Benefit The Builders/Sellers?

The Genesis Program:

• Increases the number of people that can qualify for YOUR home.
• Increases your marketing abilities and exposure.
• Decreases your marketing time.
• Maximizes your net proceeds.

There are three primary reasons buyers do not qualify for a mortgage:

1. Lack of Income or employment stability
2. Lack of a satisfactory credit history
3. Lack of funds for the downpayment and closing costs.

By completely eliminating No. 3, the Genesis Program increases the available number of homebuyers by as much as 30%. While the pool of homebuyers has increased, these homebuyers will still need downpayment assistance. Just imagine what a 30% increase in the number of homebuyers can mean to you if you are willing to utilize the Genesis Program when you are looking to sell your home.

Imagine the marketing potential “ZERO DOWN – GIFT MONEY AVAILABLE” can mean to you. You will be able to market your home for sale in many ways not available without the Genesis Program and because you have a larger pool of available buyers, the marketing time or the time it takes to sell your home will decrease significantly (Keep in mind that you are still having to make your mortgage payments while your home is sitting on the market). You can use the Genesis Program as an additional marketing tool.

A common misconception is that the Genesis Program is more costly to the Seller than a typical FHA transaction. This is not the case! When you truly compare using the Genesis Program to a non-Genesis transaction a seller can often “net” the same amount of money (or more) by using the Genesis Program.

Seller Estimated Net Proceeds Calculator	Sale w/o Genesis	Sale With Genesis
List Price of Home	$ 100,000	$ 100,000
Average % Reduction	5%	0%
Sales Price	$ 95,000	$ 100,000
Less: Genesis Fee 3% of Sales Price + $950	$ 0	$ (3,950)
Less: Sales Commission	$ (5,700)	$ (6,000)
Less: Closing Costs Estimate 2%	$ (1,900)	$ (2,000)
Net Proceeds to Seller	$ 87,400	$ 88,050

DEFINITIONS

1. List Price of Home – The asking price at which a home is originally offered for sale.
   
2. Average % Reduction – The difference between the List Price and the actual Sales Price. The average % Reduction is the average of these differences and usually ranges from 3% to 7% depending on the specific real estate market.
   
3. Genesis Fee – This is the contribution to Genesis and is equal to the gift amount plus a processing fee of (1% of the sales price or $950, whichever is less). This example assumes Genesis made a gift of 3% ($3,000) to the Buyer.
   
4. Sales Commission – Real Estate sales commissions usually range from 6% to 7%.
   
5. Closing Costs – These are the standard costs associated with selling a home and include settlement charges, title searches, inspections, transfer taxes, etc…

All else being equal a sellers Net Proceeds will be approximately the same whether or not you utilize the Genesis Program, consequently you might as well benefit from the increased marketing abilities and decreased marketing time by offering the Genesis Program.

Remember, the seller is NOT obligated and DOES NOT make a contribution to Genesis if a Buyer that does not use the Genesis Program purchases their home.