Home Builders Guarantee

Home Builder Application

Home Builders Guarantee's primary product is the vehicle by which their client (a home builder) may
offer a guarantee to their customer that they will not be harmed by potential depreciation. The
guarantee is a maximum amount that a home builder will agree to repurchase their product from the
homebuyer a predetermined amount of time in the future.

Example of a Guarantee with a $50,000 limit:

If, at the end of the period of time, the home buyer believes that their home has depreciated, then
they can claim the guarantee. If a home purchased for $300,000 depreciates to $225,000, then the
home builder will repurchase the home for $275,000 (depreciated value of $225,000 + $50,000
guarantee). In this type of instance, the homeowner would have their losses reduced by 66.67%.
But if the home were to only depreciate to $275,000, then the home builder would repurchase the
home for the original purchase price of $300,000, and the homebuyer will have realized no loss in
home value.

If at the end of the guarantee period, the home has appreciated to a value greater than the original
purchase price, the guarantee will expire and all funds will be returned to the home builder, less fees
earned by Home Builders Guarantee.

Lending Institutions

Financial lending institutions can also benefit from the utilization of the Home Builders Guarantee as
a means to ensure their customers will meet their financial obligations. One of the main issues
facing financial institutions in today's economy is uncertainty. Whether it is the uncertainty of
interest rates or the uncertainty as to whether or not their customers will meet the obligations of their
loan. The guarantee can also be utilized by these institutions as a means to guarantee that the
borrower will not default on the loan.

The lending institution can require to be listed on the guarantee in order to collect from it if the
borrower fails to meet their obligations under the mortgage. If the borrower were to default on their
loan, the lending institution can foreclose on the property, and upon foreclosure, can claim the
guarantee corresponding to the home.

Other Guarantee Applications

The Home Builder Guarantee, as a financial vehicle, can be adopted for more purposes than just
home builders and financial institutions. Virtually any product that faces the short-term uncertainty of
depreciation, it can be guaranteed by Home Builders Guarantee.

Home Builders Salvation.

By, Grant W Davis

I love my job, I love my clients. I have the greatest job on the planet! I actually get paid to help
people! This is why I am writing to you today. My clients are hurting and under a great amount of
stress. They are giving away free cars and swimming pools, and cutting their prices to try to sell a
home.

As a student of salesmanship and marketing I have created what I have come to call "Spider Sales &
Marketing" referring to the eight legs of a good marketing plan, and "Spider Nest Sales & Marketing"
referring to setting up a great marketing plan using 8 spiders working for a common goal. Producing
leads! Very few companies devote the time and energy needed to develop the detailed sales and
marketing systems I am referring to.

As I studied the ads of my clients who are paying hundreds of thousands of dollars marketing their
wares, I say a little prayer thankful that I never went to school to learn how to sell or market products
like the ones my friends are hiring to help them sell their homes. Its not just them by the way, the
national builders are worse than the smaller local guys. I then wonder how these ad guys are
sleeping at night stealing money from my clients with their lack of understanding, or callus disregard
of sales and marketing.

I met with one of my friends/clients a few weeks ago to discuss the upcoming renewal of his
insurance policies. Like so many of my other clients the real problem is he doesn't know how many
homes he will sell next year. But we take a guess about 20% of what he did last year, which is
consistent with my other home building clients.

My client mentioned he had seen my ads and asked who was doing them for me and if I know of a
good ad guy I could refer him. When I told him I did them all myself, his jaw dropped, "you are
kidding". Nope. I went on to detail the bio, and my 28 years as a leading salesman, and trainer.

My friend asked me what I thought about his marketing. I responded that the market had changed
and that I didn't understand why his marketing hasn't? 5 years ago you simply had to put up a sign
and had prospects camping out for a week before you opened your subdivision for sales. Today is
different isn't it?

All of the ads I see from builders look like a version of this:

"We build a nice house, and we build a nice neighborhood, and we will lower our prices, and give you
a free car, or add a swimming pool, we will make your house payments for the first year" etc�.

I asked how is that working for you? The answer of course is about the same as everyone else. He
has been watching the condo market in Florida and how they are advertising, as well as the ads from
some of the largest builders in the nation. All of which are producing about the same result. The
result these seven figure marketing geniuses ads are producing is the slow agonizing death of my
friends. If not death, they are at least being tortured. My friend agreed.

I asked him if he knew why nothing so far was working? He didn't. I told him that the reason is so
simple that as soon as I tell you what the problem is you will see it. (Just like you as soon as you
read this.) The simple answer is no one is addressing the actual problem. Selling 101: you have to
understand the objection before you can sell anyone anything.

Offering me a free car if I buy your home is like offering a man dieing of thirst in the desert a pizza
with jalapeno peppers on it instead of a glass of water. Can you see yourself in the desert? You
have been there for 4 days without water, you are about to die, and as you look up at this billboard you
see just 5 more miles away is a beautiful building in a great area offering you a pizza with jalapeno
peppers, the best looking pizza you have ever seen. So what! You need water, not a pizza with
peppers!

Offer me a free car? So what! Offer me a swimming pool? So What! You build a great house? So
what, says everyone else that builds one. My personal favorite is, cut my prices? That just
reinforces the "wait and see" mentality. It's 180 degrees from what you want to do isn't it? Don't you
want to sell a home today or next year? I wonder. The list goes on and hopefully you can see how
foolish it is to offer and try to sell someone something they don't want or need. Clearly you must have
no idea what the objection is. Or if you do understand the real objection for some reason you are
ignoring it like it isn't real, maybe it is just to difficult to address. Either way most sane people will not
buy something they have a valid unanswered concern about, particularly when it is most likely the
largest single financial investment they have or will ever make.

My friend asked me for the answer, so I gave it to him. The glass of water that everyone is looking for
today, or should I say the unanswered question, the objection that no builder's ad man seems to dare
to address; Shouldn't I wait until next year and see how low the prices go down?

Salesmanship teaches you how to uncover objections and then classify them as valid, invalid, or half
baked. In this case the housing crisis is a good valid objection. An invalid objection or a half baked
objection simply needs an injection of fact, supported by evidence to overcome. However a valid
objection kills the sale for most sales professionals and evidential seven figure marketing geniuses.
But for the few of us street smart sales and marketing people that have gone to the Zen level it is the
brightest, happiest spot I can think of.

You must think I am nuts by now! I am happy, even excited, tingly inside. Because I found the
unanswerable question, a valid objection!

For me a valid sales objection means all my competitors have just left the playing field (I love
competing with lazy idiots). So there I stand with the football in hand, and all the other players on the
defense and most of the players on my own team have moved to the side lines quickly convinced that
the insurmountable task in front of them can't be accomplished. So as usual I find myself alone in a
position to stroll to the goal line and score the winning touch down. I just have to figure out how to
solve the problem.

I'll date myself a bit here, but when I was 17 in the San Francisco Bay Area, cable TV was just
coming out. (Like I said I date myself a bit with this one!) I became a cable TV salesman and my first
sales training class lasted 5 days. I am sure I learned a lot about cable TV and how to sell it, but I
can't remember. The one thing then that has stayed with me these 30 years in sales was what
turned out to be the key to selling this new idea of paying for TV service. To sell cable TV all I had to
do was find a problem and solve it. In this case of cable TV, poor reception and lack of programming
was the problem. This one small piece of training that made me an effective cable TV salesman at
17 set me up for a life time of touchdowns after all my competitors had left the playing field.

Ok, I have made you wait long enough for the answer. Remember I told you the answer was simple?
For me, this means the answer is usually correct.

Focus on the objection in your prospects thoughts and conversations. Shouldn't we wait until next
year to buy a house and see how low the prices go? Your response becomes your Unique Sales
Proposition (USP); also know as your new marketing plan! It must achieve two things with one
statement: first it must answer the question on your potential home buyers mind, and second it must
at the same instance overcome the effects of the social proof (the legs of the table) that support your
prospects belief that they should wait to buy. In this case the social proof (TV, Radio, CNN, and
everyone else's opinion) is ingrained in every prospects mind. All of this has to be done with factual,
credible evidence to support your USP.

There is much more to all this of course, but in this case I am going to focus on one USP which will
help. However, you need to develop Multiply Sales Propositions (MSP's) to attack the problem from
every angle and capture your prospects heart and change the common opinion in their mind, turning
them into not only clients but into your most valuable assets. Also known as, born again home
buyers! Spreading the good news that now is the best time to buy a home ever! And, you are the
only one to buy it from!

How?

Answer the legitimate objection on every potential home buyers mind!

Take the risk away. Guarantee to buy back the house for what they paid for it!

Answering the objections in a buyers mind, and generating leads is just the beginning! The next
steps are critical if you want to sell anything you must have a detailed scripted sales system.

The harsh reality is:

While Home Builders Guarantee Inc. Provides the USP (Unique Selling Proposition). Most builders,
their investors, and home loan lenders thinking is so far out of Sync with the common thoughts of the
home buying public, and their real objections to buying a home today I don't see them without our
help catching on very quickly. Yet catch on they eventually will.

After nearly a decade of phenomenal sales success most builders, investors, and lenders have
been lulled into arrogantly assume that it is their great floor plans, decorating skills, eye for
neighborhood development, quality of their product, or their "good name" that caused their sales
phenomenon. After all the reason people were camping out weeks before a subdivision opened to
make sure it didn't sell out before they got their home was because "this builder builds the best
home in the country" wasn't it?

Likewise Realtors in general and every one of the realtors I have every spoken with at model homes
for sure are grossly under trained in the "systematic" use of the sales process and salesmanship. I
believe it is because they have never worked in a time when prospects weren't lining up with pen and
check in hand to buy from them. They are well trained order takers, but they are not salesmen by
any measure I know of. They simply never had to learn and definitely never had to master sales
systems of salesmanship. Many have been fooled into thinking they are great salespeople because
they can fill out the paper work when someone wants to buy a home. After all isn't that selling
homes?

The fact is most model home realtors seem to me to be barely licensed (they past a technical test)
who have become bodies thrown into a business that needed "warm bodies" to say hello and point
out where the kitchen and garage is (the extent of their sales training that was apparent to me) They
are unaware of what it is they even do for a living. My first test of a salesman is to ask a simple
question. "What do you do for a living"? 99% and maybe more fail so miserably it is embarrassing.
Don't believe me? Ask one!! I have never met one that can affectively answer this seemingly
simple question. So I am left to wonder if they don't know what you even do for a living, how good
can you really be at it?

Most realtors rely on social selling skills (one of the least effective selling tools). This also
unfortunately produces a widely varying unpredictable experience for the suspects that look thru a
model home. (Buy the way none I have every asked can correctly tell me the difference between a
suspect and a prospect) I would discuss their lead capture techniques, and follow up, but I have not
experienced any from any realtors ever. Which as a life long student of salesmanship and
marketing, I always pay particularly keen attention to, and even playfully try to extract from most
sales people? I pick a bit on realtors here as the best marketing plan in the world will always fail if
there isn't a great sales system behind it. In the case where there is no system at all how can there
be any expectations of sales actually being made? Order taking is so last year! ? So besides the
USP that GDI Insurance's Home Builders Guarantee Inc. offers sales training has to be part of the
solution. Interestingly while doing market research I called for just about 4 hours and got 9 families
that I would classify as prospects. 2 would be current "work on them now" and 7 would have been
future prospects. How many realtors sitting on homes do you know anywhere that spend their sitting
time making cold calls?

Most home builders know the system of building a home. But somehow assume that Sales is not
also a system, or if they recognize it they treat it lightly because "it is so easy anyone can do it"?
This must be why they have "anyone" doing it? They fail to realize that sales is a system, which
should be created by a well qualified sales professional much like the process the architect that
draws plans go through. Rather most builders rely on their current sales force to put their sales
systems together, and accept the complaints of their under trained, and unqualified, sales staff that
scripting (a tool every great salesman I know of has mastered) is somehow the old "death of a
salesman" canned pitches that used car salesman use! (They don't either). The undisputed fact is
that more marketing plans are abandoned because of poor untrained and unscripted salesmen than
for any other reason.

In this case being out of sync with common thinking hasn't hurt them in the past as the demand for
their product was so great. Today the market (The in sync thinking) has changed. Most builders
and banks don't understand the real objection to buying now, as most are not trained in identifying,
classifying, and handling objections (salesmanship). They frankly have had no need to learn this skill
set. This is also the primary reason they failed to understand or accept the reason for their great
sales successes of the past decade.

How do I know this? I ask sales and marketing questions that any sales and marketing organization
would know the answer to with out blinking an eye. Marketing plans, response ratios, conversion
ratio, client and prospect warming systems, full lead capture, presentations, compared to what?
Ect� Just like a salesman that can't quickly tell you what they do for a living in a manner that elicits
an emotional response. Likewise a builder that isn't a "master salesman", and "master marketer"
quickly shows their hand when speaking with someone who is. Here is another example: If you
asked me how to build a home from the ground up, I may get some of the terminology correct, and
be able to give you a nice sounding overview, but if you are a "master builder" you will know I am not
a "master builder" within 3 properly asked questions. Just as I after nearly 3 decades of high end
salesmanship, study and successful marketing can tell you most builders are not "master
salesman" or "master marketers".

Without understanding the sales and marketing systems most builders "really" had in the past
decade. It is unlikely that most builders will make any changes on their own as the fantasy version of
their unexamined "success story" feels better to them! Even, and still today as pressures mount.
The truth is most successful people have no idea how they become successful. For most it was a
matter of luck, rather than a well planned out and executed process. This is why most do not like to
take the hard looks needed to make the hard changes. We all have to be careful what we tell
ourselves and hold in our mind as our "reasons for" as we do come to believe them over time.
Good, or bad, correct, or incorrect.

However as finical pressures mount for both builders and their lenders I can tell you with certainty
the outcome. There are only two choices in sales "yes or no." Everything else is some kind of an
excuse that typically hides the fact that a "system" was not used, or was not used properly. So
Builders, Banks, and Realtors will either

1.Adapt to the current market conditions, and realize salesmanship and marketing is the heart
of their companies, not the home they build, the home they sell, or the loan they make, but
salesmanship and marketing.

2.Or, they will deny this fact, do to some preconceived misunderstanding of what the terms
salesmanship and marketing truly mean. Then they will turn in their subdivision to the bank and let
them take the larger loss.

3.I know I said only 2� the third is just plain old Lotto style luck. (which is how some become
successful to begin with)

As an if I were you thought: As a builder that "gets it" why not go against the common thinking of
most other builders and position yourself with the bank to partner with them on the subdivisions they
will shortly and undoubtedly be repossessing from great builder (technicians) that went insane and
lost everything by doing the same thing over and over and expecting a different result. They are like
the companies that use to make vinyl records, that didn't switch their company to the CD format
because they too held their "success story" to near an dear to their heart to examine it.

I always say why buy something from a competitor that you can just take! Here you can swoop in
and help the bank, and yourself by building, marketing, and selling the home for them.