Starting today, real estate agents who list or sell a foreclosed home owned by mortgage giant Freddie Mac in 23 select states will get cash when the sale of the home closes.
The promotion applies to homes sold through Freddie Mac’s real estate sales division, HomeSteps. Buyer’s agents will receive a $1,000 incentive and listing agents a separate $500 incentive when an approved offer is received by April 15 and the transaction closes by May 30, the mortgage giant said.
Freddie Mac also joined fellow mortgage giant Fannie Mae in offering an incentive to buyers of foreclosed homes. While Fannie Mae is currently offering 3.5 percent in closing cost assistance for deals that close by May 31, Freddie Mac is offering homebuyers $500 they can put toward condominium association dues, flood insurance premiums or a home warranty of their choice.
“HomeSteps’ 2014 winter sales promotion is focused on firing up sales in ‘cold weather’ states and condominium deals everywhere,” said Chris Bowden, HomeSteps’ senior vice president, in a statement.
“With mortgage rates still low and home inventories tightening, the 2014 HomeSteps Winter Sales Promotion is a great opportunity for families ready to buy and real estate agents ready to sell.”
In order for agents and homebuyers to be eligible for the incentives, the purchased home must be sold as a primary or secondary residence and cannot be an investor purchase, auction sale, sealed-bid sale or bulk sale. Owner-occupants buy two-thirds of HomeSteps homes annually, and last year HomeSteps homes sold for an average of 95 percent of their local current market value, Freddie Mac said.
The promotion applies in 23 states: Alabama, Connecticut, Colorado, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, North Carolina, New Jersey, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington and Wisconsin.
Freddie Mac has offered similar agent incentives in the past, including a program in 20 states that wound down last spring. Fannie Mae has at times offered agent incentives to compete with Freddie Mac.