What Sells? Incentives in the Market Place

By
Real Estate Agent with Kathleen Cooper, Best Option-EXIT Realty Partners, REALTOR® 9084437/Brokers

What Sells?  How do you boost your activity?  How to you make your home stand out in a market of many?  Price is a good starting point, but what else can you do?  Here are some incentives I've seen in the market place to help entice buyers to purchase a home over another:

  • Cash Back at Closing
  • Sales Bonuses to the buyer's agent if UAG by a certain date
  • Free cars
  • Free tvs
  • Homeowner's Association Fees Paid for 6 months or a year
  • Vacations
  • Gift certificates for fine dining

What have you seen in your market place?  What has worked for you personally?  I've tried offering sale bonuses for buyer's agents, seemed to help peak some interest.  Maybe a coincidence, maybe not.  I've also tried offering a trip to the buyers, didn't peak much interest.  I had a seller that had a timeshare in a great ski resort area that was willing to let the future buyers vacation there for a week free, but had no takers.  I've spoken to realtors that give out vacation certificates or gift cards for fine dining, seems to help them land listings and catch more referrals.  Please share your incentive ideas or experiences here. 

Got a great closing gift idea?  I'd love to hear those as well! 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Sales and Marketing
Groups:
Boston Area Real Estate
Door Knocking, Walk Abouts and Other Neighborhood Experiences
HouseValues Discussion Group
Realtors®
Tags:
jckc realty
what sells
sales incentives

Anonymous
Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
17,173
Shaun Rice
Keller Williams Landmark - Astoria, NY

One of the things we do - as an incentive for college students - is to offer
For Rentals: Free Credit Report and to sponser their moving truck with a $50 gift card

For Sales: Either a Free Home Warranty through AHS or Free Home Inspection

Jun 26, 2009 10:15 AM #1
Rainer
191,863
Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate

In our market, Price is KING!!  Price, price, price.  Incentives are not needed if the property is priced BELOW the competition.  The price needs to be the lowest and the condition needs to be the highest.  If condition is bad, price needs to be even lower.   Price overcomes everything.   Not much can overcome the price. 

I think agents overthink this and try to give too much away because in reality, no one is buying a home just because it has a home warranty  or just because it has a free moving van if the house is not priced right.  Price them right and everything will fall into place

Jun 26, 2009 10:19 AM #2
Rainer
408,652
Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

Great post full of wonderfull ideas. Thanks so much for the out of the box tips.

Jun 26, 2009 10:21 AM #3
Rainmaker
362,492
Kathleen Cooper
Kathleen Cooper, Best Option-EXIT Realty Partners, REALTOR® - Worcester, MA
EXIT Realty Partners - Broker, REALTOR®

Shaun - Thanks for sharing!  I forgot to mention the home warranties that have been offered in a lot of cases!  Totally slipped my mind!

Jeff - Price is key, but when you have a seller that won't list below market or even right at market, incentives help to make that home sell faster if it "has" to be listed just above market based on a seller's fear of "low ball offers".  Even if you educate them to death and tell them they don't have to accept the low ball offers, they still sometimes want to try it their way first.  I don't take listings that are too far out of range, but just above market value I can work with.

Terry - Thanks for stopping by!  I hope we get some more good ideas or stories to share!  =)

Jun 26, 2009 11:27 AM #4
Rainer
191,863
Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate

Kathleen, that is where we need to get better as professionals.  We are all guilty, myself included.  Tell the sellers NO, show them the numbers, show them the list to sale price ratio, show them days on market.  If you do take on overpriced, be sure to include an automatic price reduction after the first two weeks or simply do not take the listing.

We as professionals have to be the professionals and do not let the seller be the professional.

I am parked here for more comments, good topic!!

Jun 26, 2009 11:35 AM #5
Rainmaker
362,492
Kathleen Cooper
Kathleen Cooper, Best Option-EXIT Realty Partners, REALTOR® - Worcester, MA
EXIT Realty Partners - Broker, REALTOR®

That's so true Jeff, that's why I won't take listings where sellers won't budge.  I've learned my lesson the hard way...LOL  I'm just glad I learn from my mistakes.  We do a great job advertising our listings and spend money on them, I don't want to throw money away from uncommitted sellers. 

On the other hand, creative marketing does help sell and I'm always loving new ideas, incentives, etc.

Sincerely,

Kathleen

Jun 26, 2009 01:12 PM #6
Rainer
32,788
Tim Cahill
RE/MAX Results - Arlington, MA
MBA, EcoBroker

Here are a couple of other ideas:

1) Another agent in my office has a small moving truck she purchased and had designed with her logo.  She offers it free to buyer clients who want to move small loads, etc. 

2) As an EcoBroker, I have offered free energy rating audits to buyers who sign with me and use an energy efficient mortgage or other green financing incentive (such as the MassSAVE Heat loan Program here in Massachusetts).  Not only is it attractive to the buyer because the initial audit is reimbursed (up to $800 value), but they also usually end up qualifying for a higher mortgage AND saving money after-purchase with lower utility bills.

-Tim

Jun 27, 2009 04:49 PM #7
Rainmaker
362,492
Kathleen Cooper
Kathleen Cooper, Best Option-EXIT Realty Partners, REALTOR® - Worcester, MA
EXIT Realty Partners - Broker, REALTOR®

Very great ideas Tim!  Thanks for sharing.  Would you share what an EcoBroker is and how you became one?

Thanks!

Kathleen

Jun 28, 2009 10:18 AM #8
Rainer
32,788
Tim Cahill
RE/MAX Results - Arlington, MA
MBA, EcoBroker

Hi Kathleen,

I'd be happy to share that info with you!  Here's an excerpt from the EcoBroker web site:

"EcoBroker is the premier provider of green designation training for real estate professionals...providing environmental education and outreach, helping consumers and communities take advantage of energy efficiency and environmentally-sensitive design in real estate properties. Through EcoBroker’s unique energy and environmental curriculum, real estate professionals acquire the knowledge and resources to become Certified EcoBrokers®. These real estate professionals assist clients in their pursuit of properties that provide affordability, comfort and a healthier environment, all the while reducing carbon footprints. EcoBroker has thousands of members in all 50 states and internationally.

The EcoBroker portfolio of products and services fulfills the current desire of business professionals to spread knowledge of environmental issues and improvements. By carrying out this mission, the company, real estate professionals, vendors and communities can reduce their impact on our natural resources and environment."

For more information or to enroll in the course (which taught me SO MUCH!), visit the EcoBroker web site.

Of course if you have more questions also feel free to ask me and I'll do whatever I can to get you an answer!  Take care and thanks for asking, Kathleen!

--Tim

Jun 28, 2009 06:13 PM #9
Rainmaker
362,492
Kathleen Cooper
Kathleen Cooper, Best Option-EXIT Realty Partners, REALTOR® - Worcester, MA
EXIT Realty Partners - Broker, REALTOR®

Thanks for all of the info Tim!  I'm going to have to check it out.  Have you looked into the new NAR's Green Designation Core Course: https://www.learninglibrary.com/AspDotNetStoreFront70/p-229-nars-green-designation-core-course.aspx?  I'm curious to know what the difference is.  I like the EcoBroker name.

Sincerely,

Kathleen

Jun 29, 2009 03:32 PM #10
Rainer
61,518
Bob Dunn
Homelife Glenayre Realty - Abbotsford, BC

Kathleen

Over the last 25 years I've seen a multitude of incentives offered by Realtors but none seem to last. I'm thinking that if they worked they would still be used.

I try to look for practical gifts .... like 20 or 30 moving boxes. Not a high cost but something they don't forget.

Jul 02, 2009 01:35 AM #11
Rainmaker
362,492
Kathleen Cooper
Kathleen Cooper, Best Option-EXIT Realty Partners, REALTOR® - Worcester, MA
EXIT Realty Partners - Broker, REALTOR®

That's a great idea Bob!  Where do you get your boxes from?  I'm a strong believer that creative marketing and incentives do work, whether they change from time to time or remain the same.  People always want more so whatever you can afford to offer can help motivate them to list or buy with you over your competition.  I like to shop around and I believe there are a lot of others out there that do, too. 

Have a happy 4th of July this weekend!

Sincerely,

Kathleen

Jul 02, 2009 07:05 AM #12
Rainer
61,518
Bob Dunn
Homelife Glenayre Realty - Abbotsford, BC

Kathleen you can buy boxes from moving and truck rental companies and often from FEDX and other shippers.

Jul 05, 2009 12:13 AM #13
Rainmaker
101,432
Matthew Naumann
Exit Realty Charleston Group - Goose Creek, SC
Goose Creek, SC Real Estate Agent

Kathleen,

Great Post.  I am not convinced a potential buyer will buy house A vs house B just because is certain type of incentive.  I think the house still needs to be priced right for the condition home and gives the market the impression that this home offers value.

Thanks for sharing,

Matt Naumann

Jan 07, 2010 07:36 AM #14
Anonymous
Post a Comment
Spam prevention
Show All Comments
Rainmaker
362,492

Kathleen Cooper

EXIT Realty Partners - Broker, REALTOR®
What's My Home Worth?
*
*
*
Spam prevention

Additional Information