We've revamped our Purchasing Power & Equity Explorer modules!
Here's everything you need to know...
First thing to note, these modules only display when a homeowner has more than 20% equity, totaling at least $25,000 or more. If this criteria is met, the following content will appear...
New additions to our Purchasing Power module include...
- Get your dream home: In this scenario, the homeowner sells their current home and uses that money (minus 7% selling costs) as a downpayment on their dream home. Click on this tile to expand for more details. Homeowners will see a button to send them to the Buyers market report experience to find that home of their dreams.
- Buy a rental property: In this scenario, the homeowner can take out equity up to 70% combined loan-to-value and use it as a 30% down payment on a rental property. If the homeowner doesn't have 70% combined loan-to-value, they will see alternative information suggesting they wait until they have enough equity.
- Rent your home and buy another: NEW! In this case, the homeowner uses up to 80% combined loan-to-value in equity to make a 25% down payment on their new home. Then, after moving, they keep and rent their old home.
- Sell and pocket the cash: NEW! Easiest scenario of all. The homeowner sells their house and pockets the full equity minus 7% selling fees on the final sales price.
See it in action below:
New additions to the Equity Explorer features eight ALL NEW options for a homeowner to leverage their hard-earned equity. Here they are, explained below...
- Create an Emergency Fund: Use a HELOC to create access to reserve funds in case of emergency (the dollar amount shown is the monthly loan payment x 12).
- Make Home Improvements: Although home improvement is often highly recommended, Homebot is cautioning homeowners that most home improvements will NOT result in a positive return-on-income (or ROI). The dollar amount shown is the cash that can be taken out while still maintaining 80% loan-to-value. Homebot is also recommending your clients reach out to YOU, as the expert, for a more in-depth analysis of how home improvements affect their specific short and long-term goals.
- Add more livable space: A twist on the home improvement option, this scenario specifically encourages expanding the livable square footage in the house or even building a detached accessory dwelling unit or ‘Granny Flat’. This can result in immediate rental income or more space to house an aging parent. The dollar amount shown is the cash that can be taken out while still maintaining 80% loan-to-value.
- Eliminate credit card debt: Potentially one of the wisest uses of home equity, consolidating and/or paying down expensive credit card debt with a low interest equity loan or line of credit. The dollar amount shown is based on the average credit card debt per household in America (approximately $16k).
- Pay off student loan debt: Similar to credit card debt, this offers a way to reduce interest charges while building credit history for the former student. The dollar amount shown is based on the average debt for a 2018 graduate (approximately $38k).
- Go solar!: A fun take on home improvement. Adding solar panels can reduce the power bill and allows homeowners to qualify for a host of tax credits and other deductions. This tile, when opened, includes a link to Google’s Sunroof project to see if adding solar panels makes sense for a specific home. The dollar amount shown is based on average cost to install a 5kw system (approximately $17k).
- Splurge on a European vacation: This is a cheeky example of what not to do with your equity and includes links to better uses in the module. The dollar amount shown is the same for all homeowners at $15k.
- Explore new investments: This tile is intended to let the homeowner know that there are many uses for home equity and connecting with a professional for advice is the best first step! The dollar amount shown is the cash that can be taken out while still maintaining 80% loan-to-value.
See it in action below:
Between both the Purchasing Power and Equity Explorer modules, there are 14 new opportunities for your clients to reach out and engage with you via direct messages. Be sure to follow-up with your clients when they have questions to generate more repeat and referral business!
We hope you love the new look and feel of the Homeowner Digest! We recommend you check it out for yourself and start clicking. Of course, please send us your questions and feedback as our customers always give the best suggestions.