Incentives Flood The Market
(Selling a home in today’s marketplace has turned from a profession into a full-blown art form. Sellers and their real estate agents are doing just about anything to sell a house. )
The one thing that seems to be growing in popularity by the day is sellers who offer incentives and promotions to lure-in buyers. Now, we are not talking about fresh-baked brownies and refreshments, but rather expensive and ornate items such as cars.
Sellers are stopping at no expense in order to get rid of their home in the over-saturated market.
A September 24, 2006 article by Ann Brenoff of The Los Angeles Times, “A Maserati – as bait,” discusses the various incentives people are throwing out to lure-in potential buyers.
“Stopping short of installing glue traps to ensure that prospective buyers can't get away, sellers, builders and real estate agents have been reaching deeper into their bag of tricks in their efforts to move the ever-increasing homes-for-sale inventory. They are giving away new cars, trucks, plasma TVs and chances to win expensive vacations to those who buy, refer a buyer or, in the case of Coldwell Banker, even just agree to chat with them without using a pseudonym.”
Since there are so many homes for sale on the market, the competition to sell is greater than ever. People are worried that there home is not standing out enough amidst the excess of others, so they feel they need to give away material possessions is order to make up any inadequacy, or lack thereof.
Creativity is definitely the word of the day when it comes to selling a home in today’s environment.
In addition to sports cars, and hybrids, home sellers are also offering cash gift certificates and thousands of dollars off the original listing price.
“Closer to home, Mark Tacconelli, an agent with Noble Real Estate in Ladera Ranch, has clients who are offering a brand-new Toyota pickup truck to whoever buys their 2,300-square-foot La Habra home, listed at $750,000. ‘If they don't want a pickup, they can have a Prius,’ Tacconelli said, covering all bases. ‘Or if they don't need a new car and just want to knock $15,000 or $20,000 off the price, that's fine too.’ The man is practically begging here.”
It seems as though cash and discounts on the overall price and closing costs are things that seem to be striking the best cord amongst buyers.
In reality, of course most people are going to accept a brand new car, but discounts on cost are what make the most economical sense in this changing market.
“Then there are home builders who figure that the best way to reach someone may be through their wallet. They ‘buy down’ interest rates to make their homes more affordable or absorb closing costs for their buyers. Some builders offer special incentives to those who already own one of their homes if they refer a friend.”
In the long run, it seems like sellers are going to keep doing whatever it takes to keep up with their neighbors, until the market corrects it self and things go back to normal. Until then, we will just have to see just how creative these desperate sellers can get.
