Barry Bevis in Tallahassee is looking for help. And he’s willing to pay for it.
He has a listing that he’s having trouble moving, and he’s looking for marketing ideas to draw the attention of a buyer.
Here’s Barry’s note:
I have a great listing that just won’t sell…
I’ve given it my version of the Bloodhound treatment: Custom Sign, Website, URL and lots of photos. You can see the home by clicking here.
It’s in a preferred neighborhood with parks and shopping within walking distance. It has been well maintained and is priced well — according to comps and other brokers feedback. It has a great yard and a hot tub!
The negatives: After a year of trying to sell I know them! Small Master bath and No Half Bath. Tile Counters in the kitchen — our area prefers Stone. The cost to cure these “issues” is beyond what the seller can do.
We did start with it priced too high. The seller was “not in a hurry” and wanted to try a higher price. I said okay because he is a friend — knowing all along that it was a mistake. Now its in the ballpark and would appraise at the new list price.
I get a couple of people in a week — and loads of website traffic. But no offers. Not even obnoxious low ball offers.
So the seller keeps asking me what to do… Besides lower the price. So this month we are dropping the price 1K a week, a 4K price drop. That will make it show up on any buyers automatic web searches as “Price Reduced.” We are also offering to pay a point to drop a buyers interest rate, likely below 5%.
What else should I be doing?
I’m looking for ideas to ignite interest in this home and get it sold. I’ve got a $100 AMEX gift card to the most creative idea. Greg and I are the judges.
Step up and tell me what to do!
This is a tough problem, one I wish I were unfamiliar with. F. Scott Fitzgerald said, “There are no second acts in American lives.” One of the jobs we’ve paid particular attention to is writing a second act for our listings: What do you do when you’ve done everything according to plan and then — nothing happens. I’m as eager as Barry is to hear your suggestions.
Scott Cowan says:
One of the incentives we are kicking around offering is something that the auto industry is doing. It also is offered frequently in the UK. I have not seen it done locally nor read about it happening in the U.S.
Offer to cover the mortgage payment if the buyer loses their job during the next 24 months.
From what I have been able to find out you can purchase a insurance policy for approximately a half percent of the loan amount. The policy will cover the mortgage payment if the borrower loses their job through no fault of their own (can’t get fired) or becomes disabled. The period of time varies on the policy etc.
I am thinking that this might eliminate an objection one might have that while today they are doing fine they have some nagging reservations about what the next couple of years offer. This would allow them to keep the home and have the time necessary to get back on their feet. Anyone should be able to get a job within 12 to 24 months!
That’s my idea. I am interested in reading what others have to offer.
Best wishes,
Scott
March 20, 2009 — 9:39 am
Greg Swann says:
Oh, man, that’s excellent. We’ve done this one time, but we hadn’t thought to do it with everything and promote it with the marketing. That’s a killer idea in this market.
Now: Would someone please step up and rip the gift card out of Scott’s teeth?
March 20, 2009 — 10:08 am
Greg Swann says:
And now… It’s Bloodhoundized: As a Buyer-Protection Plan, this idea rocks as a way of attracting buyers…
March 20, 2009 — 10:12 am
Scott Gaertner says:
This is indeed a worthy post. I have been selling for 25 years and still have no good answer for this question beyond price.
Last weekend I took over a listing that had been on the market for 2 years and looked like a genius when we sold it the first weeked by shocking the market with price. Any sense of satisfaction is tempered by the knowledge that I have a listing in the same community that has not sold in over a year.
The seller’s have done everything I asked including following every direction a stager gave them to the tune of $20,000 in changes. They are the best priced home in their catagory, but still few showings and no offers. When you love the sellers and the home it is very difficult to do the obvious- DROP THE PRICE.
I look forward to reading follow up posts, and good luck to you all. Scott (Are only Scott’s interested? Maybe there is something in a name.)
March 20, 2009 — 10:12 am
Doug Quance says:
There are very few properties that a proper price can’t move.
You can dance around that issue all you care to… but it won’t change the facts.
When buyers are scarce – the best value will usually sell. Your clients can choose to help promote other properties by holding on to a price that fetches no offers… or they can become the drivers in your market by lowering the price and ensuring that their property IS the best value that other properties shall be judged by.
I have told many a seller that “I could advertise your home with full page ads in the paper and four-color billboards on the freeway – but if your home is overpriced, it probably won’t sell.”
March 20, 2009 — 10:32 am
Scott G says:
We seem to be having sort of the same problems with some of our listings. A few of them are priced under market value and are having dozens of showings a week and we still are not getting anything on paper. It gets pretty frustrating at times! Goodluck with the sale!
March 20, 2009 — 10:35 am
Jessica Horton says:
LOL. Great job Scott. There just aren’t any good ideas any more. I have my uncle (insurance broker) looking into this for me now. I read about covering the mortgage from a real estate website in Europe or Australia – can’t remember which. I thought it rocked and I began to salivate…
Great job!
March 20, 2009 — 11:52 am
Greg Swann says:
> I thought it rocked and I began to salivate…
I like this as yet another arrow in the listings quiver, but I really like it right now as a way of appealing to buyers. We’re already putting together plans for a test-mailing to see how it pulls.
March 20, 2009 — 12:02 pm
John Kalinowski says:
The most important thing I learned from Russell Shaw is that if it’s properly listed in the MLS, easy to show, and isn’t selling THE PRICE IS TO HIGH. There’s a buyer for that house, but the price is too high for what the market is willing to pay RIGHT NOW.
Particularly if you are getting a lot of showings on a listing and not getting offers, the price is too high. It’s hard to sometimes make sellers understand that point, and we wrestle with it every day, but it’s the reality of selling homes in any market.
March 20, 2009 — 12:24 pm
Chris McCormick says:
Our market it quite a bit different to yours down there – I’m in Collingwood, Ontario Canada.
Price is usually the thing here if no offers have been received in a reasonable amount of time with steady showing activity. I guess that’s the same the world over.
Here’s a local idea: one of the local subdivisions is paying the buyer’s utilities for one year – that is, hydro and gas. This is very attractive to many home buyers in these economic times. It would also make a great addition to your sign in the form of a rider or starburst to make people notice the sign again!
Just another note – and I am no expert photographer – your photos made the house look dull to me – you describe it as being full of light, but it gave me the opposite impression. The house DID give me the impression of being larger than it looks from the road, though.
Good luck, and I hope you sell it!
Chris
P.S. You’ve got a few typos on page one of the website for the property. See the line about the Wells Fargo mortgage.
March 20, 2009 — 1:04 pm
Joshua Hanoud says:
I think the insurance idea is absolutely fantastic (and am going to look into it for myself as well). The way I see it, there are three things needed to sell a house (or any product) – regardless of the market.
1) You need a product that people want.
2) The price has to be appropriate to what people want to pay.
3) People need to know about this great, well-priced product.
If any one of those three things are missing, you will not sell the product. If all three of them exist, you can’t help but sell the product. If you have a home that isn’t selling, then one of those three things is missing.
Improve the product (i.e. by offering an insurance policy against job loss?), Lower the price to make up for unimproved product (usually your answer), or get it in front of more eyeballs (hopefully you’re already doing everything you can to make that happen so this one should be a given).
So the question becomes “How can you improve the product in the eyes of a buyer to help justify the price point?”
The insurance idea is excellent (and I’m pretty sure will take the cake on this one). You could also offer to pay X months of mortgage payments to help get a buyer interested.
All of these things will cost money, though – and that money might be better spent curing the problems that are initially causing the home to stagnate (baths, countertops) – or with a price reduction.
March 20, 2009 — 2:43 pm
Jessica Horton says:
I like it right now for buyers too. ‘Course I’m really liking buyers more and more each day – and I’m a seller’s agent. 🙂
I could have about 40 listings, but I only have 12 with 3 U/C. I’m being very selective about sellers. This policy may bite me in the butt for a few days if the market rapidly shifts – I’ll take my chances…
If the home isn’t getting any showings at all: It’s probably about 8 %+ over market.
If the home is getting showings but no offers: It’s probably 4 – 8% over market. Check and see if the showing agents have put anything under contract in the area. Your home may be selling the competition.
I used to not take listings over 4% of market. Now, it’s critical to be at market or even a little below to generate multiple offers and better terms. Just because you price it low doesn’t mean that you can’t get more for the seller! 😉
BTW my attorney just moved to Tally (GO NOLES!) and I’m sending him over the info. He may be in the market or know another bloodsucker that is. Hope it helps.
No referral fee is necessary if he likes it – just a little link love will do.
March 20, 2009 — 2:51 pm
Erion Shehaj says:
A couple of ideas:
1. Terminate listing and relist a week later – this may trigger all the auto notification agents have set up for their prospects. It may be that your days on market are scaring people away from the house.
2. This is an extension to the “making payments in case of job loss” idea – pitch the story to all local tv stations in the area. I’d think they would love to cover something like that and you may get some free advertising out of it.
March 20, 2009 — 3:46 pm
Greg Staker says:
Have your seller submit written offers to buyers who visit the home.
That being said I believe that it is all in the price. Price the home at a dollar and see how many offers and viewings you receive. Suddenly nothing else will matter, not the advertisement, time on the market or staging. The goal from there is to see how much higher than the dollar you can go.
March 20, 2009 — 6:06 pm
Barry Cunningham says:
Mr. bevis wrote…”I get a couple of people in a week — and loads of website traffic”
Please define “loads of traffic”, and where it is coming from?
This might be a turkey shoot on a sunny day…please get back to me..if you want..
March 20, 2009 — 6:16 pm
Barry Bevis says:
I’m loving all of this-
Not the least- hydro for water… never seen that one!
I hear the PRICE people loud and clear.
We are looking for something else… for now.
But you all are building a great case for dropping the price or making some changes.
The insurance idea is interesting… Is it the best?
Come on Dogs Howl!!!!
March 20, 2009 — 6:28 pm
Jim Lee says:
Drop the price.
Please my $100 AMEX card to:
Jim Lee
Realty Executives
10255 Kingston Pike
Knoxville, TN 37922
That was easy
March 20, 2009 — 7:48 pm
Teri Lussier says:
Barry says “I said okay because he is a friend — knowing all along that it was a mistake.”
To be blunt, buyers should not have to pay for your mistake. You know what you need to do- just go do it.
March 20, 2009 — 7:53 pm
Jim Gatos says:
Bring the price down until you get an offer that sticks..
March 21, 2009 — 5:39 am
Barry Bevis says:
Teri Quoted me
Barry says “I said okay because he is a friend — knowing all along that it was a mistake.”
and replied….
To be blunt, buyers should not have to pay for your mistake. You know what you need to do- just go do it.
I had a “come to Jesus” conversation a few months ago and cut the price then.
March 21, 2009 — 5:58 am
Barry Bevis says:
Barry Asked me to define “loads of traffic”, and where it is coming from?
5-10 views on the virtual tour a week
5-10 views on my site a week
50 views on Realtor.com
The Majority of views track back to MLS IDX searches, My Custom URL and Realtor.com in that order
March 21, 2009 — 7:07 am
Michelle Minch says:
As a professional home stager and interior desginer, my two cents: Buyers are looking for a turn key home that they can move into without having to spend another dime. They also want to feel as if they got a great bargain. If all the other homes in the area have granite or solid surface countertops, then this home should too, if you want it to sell. In order to pay for it, your home owner should look into what financing programs stores like Home Depot & The Great Indoors (if you have one in your area) have. He may be able to replace the countertop and pay over time (If he’s lucky, he’ll find someone offering 0 down, 0% interest, same as cash for 12 months – he can repay out proceeds of the sale). I personally have started recommending Ceasarstone or Silestone over granite. Depending upon color, it can be a little less expensive, and it requires no maintenance. It feels like stone, and it looks like stone, but is more consistent in texture and color. It has a nice, clean look. In addition, while they’re replacing the countertop, I would put in a new stainless undermount double sink (often included as a bonus with countertop) and a new faucet (satin chrome or nickel works great with stainless sink). While you’re at it replace all the drawer pulls and knobs with satin chrome or nickel pulls and knobs. They can be purchased for as little as $1-$5 each and the make a big impact in freshening a kitchen. You could probably make these changes for less than $4,000 and I think they would go a long way to up the desireablity of this home.
March 21, 2009 — 8:24 am
Teri Lussier says:
>I had a “come to Jesus” conversation a few months ago and cut the price then.
Barry, with the utmost respect, you didn’t quite make it all the way to Jesus. 🙂
You are getting traffic, so to my mind this isn’t a marketing problem. Buyers are way ahead of most Sellers right now. The home has issues- of which you are painfully aware. It started out overpriced- of which you are painfully aware. Now you are going to have to make a hugely painful decision and figure out how to play catch up. House or price- something’s gotta get fixed here.
Seems to me you’ve got one more chance. Be a friend to your friend and fix this thing. Take it off the market for renovations. All the buyer’s agents who have been through it- while it’s off the market, send them a drip discussing the changes: Get it staged at a minimum. Maybe add the insurance policy, and/or bump up the buyer’s agent’s commission. Tell the agents that there will be no showings until the big reveal on X date.
Start a drip email counting down the days. Create some excitement among the agents who have already seen the place, add the agents that work that neighborhood. Build anticipation. Let them know a little at a time: “New commission!” next “New insurance!” next “New paint” etc- whatever it takes at this point, right?
Market the crap out of it to other agents and the neighbors and the move up markets. drip. drip. drip. Build the excitement. Then have one big reveal party. And you better do it right, and you better make it big, and it better be worth it.
Was that worth $100? 🙂
March 21, 2009 — 8:29 am
Joshua Hanoud says:
Hi Barry,
I’m going to be blunt here.
I understand you had the “coming to Jesus” talk a few months ago…that doesn’t mean that you’re still priced properly today.
5-10 views per week is not “loads” of traffic unless your market is completely and utterly “dead”. The lack of traffic (assuming your marketing is good) is most likely attributable to price.
As much as your sellers don’t want to hear “lower the price” again…it is the reality and you seem to be brushing off what [almost] everybody here is telling you.
You’ve got a product. You know it has flaws. You’ve done the best you can to market it.
Fix the flaws, or lower the price. Given that it’s been several months since your last price reduction, you may even have to do both at this point.
What’s the rate of decline in Tallahassee? Here in Hernando County, Florida it’s 2-3% per month (i.e. a $300,000 home loses approximately $6,000 – $9,000 per month that it sits on the market).
The game dictates the rules (not the buyer/seller/agent) and if the rules say you’re over priced, you can’t fight it and you can’t cheat. Price it properly and you’ll win the game…anything else is you skirting the real issue.
March 21, 2009 — 8:33 am
Jody Cowdrey says:
I agree with Joshua, Doug, and the others. A house that doesn’t sell is not priced right, period.
If a house is in need of rehab, or substantial renovation and doesn’t sell for 3, or 6, or more months, it’s because it’s priced too high. We all understand that.
But on the other side it’s the same situation: even if the house is staged correctly and presented properly to buyers, and is move-in ready and needs no work to speak of, the issue that is causing it to NOT sell is price again.
As long as the house is an active listing in an MLS system, price will almost always be the culprit in a stagnant listing. You can take condition totally out of the equation. Price it right taking into account all the factors, make sure it’s in an MLS, and it will sell.
March 21, 2009 — 8:40 pm
Sean Purcell says:
The insurance is a great marketing tool, but not the answer to the original question. If buyers are afraid to buy because of employment, then none of the other homes would be selling either. The problem stated in the post is that this home isn’t selling after doing everything right.
Also, one commentor suggested cancelling the listing and relisting. This is an MLS violation in many areas, mine included.
I say there are only two aspects to selling a house: exposure and pricing. Exposure should be 90% of what we do. We are in the marketing business; that’s what we do for a living. Pricing is simply a reflection of the homes value in relation to its competition. Everything we do with regard to the house is either in support of or degradation to the price. Buying an insurance policy creates exposure, but does not help sell a home that isn’t getting offers. Throwing in appliance will help sell a home that isn’t moving, but that’s actually just a reduction in price.
When a house (that’s been marketed competently) won’t sell, you have three choices (and they’re all the same thing):
-Pay to change the home’s physical location
-Spend money bringing the home in line with the price
-Lower the price
It’s always the price…
March 21, 2009 — 9:44 pm
Greg Swann says:
More than half say: “Cut the price.”
I’ve added this post the the Disintermediation category, so I could ask this question:
What do they need you for?
Attention FSBOs: Launch your house at any price you like. If it doesn’t sell in 14 days, drop the price by 3%. Repeat that procedure until the home sells — as it certainly will — or eventually will — if you follow this plan to the letter.
Are we salespeople — or just clerks?
March 21, 2009 — 10:46 pm
Sean Purcell says:
Greg,
Attention FSBOs: Launch your house at any price you like. If it doesn’t sell in 14 days, drop the price by 3%. Repeat that procedure until the home sells — as it certainly will — or eventually will — if you follow this plan to the letter.
That plan will work, of course. Which is why real estate agents are not in the “real estate” business. They are in the marketing business. If a FSBO knows how to market a home (and has the time, wherewithal and motivation), then they DON’T need an agent.
As I said in my comment: “When a house (that’s been marketed competently) won’t sell, you have three choices…” the key phrase being that’s been marketed competently.
If you are a FSBO (or an agent that doesn’t understand this concept of their raison d’etre), even poor marketing can be overcome… by lowering the price.
(This raises the theoretical question of how to create a logical basis for an agent’s commission: the answer would seem to be: a good agent – one who satisfies the clients’ needs at the highest price in the least time – saves the client X dollars. The commission should be equal to or less than that amount. But this is another post entirely.)
March 21, 2009 — 11:29 pm
Jody Cowdrey says:
Greg,
I think your question “Are we salespeople – or just clerks” is a problem listing agents will be struggling with more and more in the coming years, with buyers being more tech-savvy and information more widely available than ever before.
A listing agent’s value comes in taking the burden of selling the house off of the client, in interpreting the contractual obligations of both their client and the eventual buyer (which could make or break the deal), and often times in being the sole voice of reason in the transaction.
An experienced listing agent knows what works in negotiating and how to represent their clients best interest in many different situations that could come up, and how to protect them best, which is critical in this market.
Regarding price, WE are the people in the field every day…not the owner. The fact that owners often aren’t working actively in OUR business and don’t have a realistic idea of what’s happening in their market is often the kiss of death for those that go the FSBO route. We, as the experts, should know how to set the price so that it’s not on the market forever, and we should know how to present a lower initial listing price to the client so that it makes sense. This knowledge could save the seller thousands, or even TENS of thousands of dollars by selling fast and not having to make the same mortgage payment month after month when it doesn’t sell.
…and many agents should be selective about taking certain listings in the first place.
March 21, 2009 — 11:47 pm
Joshua Hanoud says:
Greg,
If I were to show you 5 identical hair dryers, 4 of which were priced at $30 and 1 of which was priced at $40. What could I POSSIBLY tell you that would get you to purchase the hair dryer for $40?
“It’s cooler, man – come on.”
This is the conundrum.
I can take an identical product that is PRICED the same (at least relatively – give me some unique features to work with to help justify a higher price-point), and make it stand out from the pack through better marketing. But to try and take an OVERPRICED product, and make it sell when the customer is aware and educated as to the market is a losing battle.
There has to be a difference (or at least a perceived difference) either in the product, the price, or the marketing.
I know the market here in FL is declining at a ridiculous pace. Therefore, I assume (dangerous word, I know) that if he reduced the price several months ago to market value, he’s way behind the eight-ball on another price reduction. This is a given as far as I’m concerned.
IN ADDITION to that, he needs to look at either improving the product, or improving his marketing.
We already know what can be done to improve the product (bathrooms, countertops)
I can’t (and nobody here can) help him to improve his marketing without first seeing what he’s doing currently – so to better qualify the situation and help to create improvements, I would ask Barry to share what he’s currently doing.
Tallahassee (major city) is a larger market than Hernando County (bedroom community for Tampa – where I am based) in a big way.
Given that, and the 5-10 views/week, I would say that the marketing needs to be severely re-vamped (5-10/week seems to be a really low number of views for a metro area)…and that this may be more of the issue than the price.
Barry – how much time/$$ are you willing to put into marketing a listing that is most likely (based on what you’ve said so far) overpriced?
Read up on what Greg does here (it’s truly fantastic) – do open houses every weekend and plaster the neighborhood & surrounding move-up areas with business-card flyers or postcards every week (different areas each week). Aside from Realtor.com and your personal website, what other websites are you using to advertise? This could be a huge benefit to you as well – utilize something like Postlets to create a decent looking (and free) internet flyer that can be syndicated to many different websites very easily.
Where are your buyers coming from? Florida is mostly out-of-towners & snowbirds…look to advertise in local magazines up north (especially now where it’s a bit more chilly than it is here – I’ve got a customer in MN who told me it’s -55 with windchill…he can’t WAIT to get here to FL!)
All of this costs time/money. If the listing is overpriced for what it is, and the customer looks at more than just the one (which they always do), they will see that it’s overpriced and your efforts will only serve to sell a different home. You need a competitive product.
A clerk gets paid hourly regardless of whether they sell or not. They don’t care if the hair dryer is overpriced by $10 and you buy from the store across the hall to save some dough.
You’re not paid hourly, you’re not a clerk, and you need to care about pricing for the market. It’s only slow if you’re over priced.
March 22, 2009 — 12:01 am
Greg Swann says:
> If I were to show you 5 identical hair dryers, 4 of which were priced at $30 and 1 of which was priced at $40. What could I POSSIBLY tell you that would get you to purchase the hair dryer for $40?
> “It’s cooler, man – come on.”
> This is the conundrum.
But this is also the marketer’s dilemma.
My father made men’s outerwear all his life. Before he retired, he was a private-label garment company executive — meaning he made the coats sold under the store brand at dozens of different chain stores. In the ’90s one of his raincoats took first, fourth and fifth places under three different labels and at three different price points in a consumer ratings magazine. The first place coat sold for $99 at JC Penny. Second place was a $900 Aquascutum.
No doubt the Aquascutum used better materials, and it’s plausible the workmanship was better. But not by a factor of nine, neither one. And you can bet that coat sold very well, with or without a consumer magazine endorsement.
If you meet us for drinks in Phoenix, we’ll often convene at the Cheesecake Factory at the Biltmore. The bar is accommodating, and it’s easy for out-of-towners to find. A double Bushmills on the rocks is going to run me twenty dollars with tip. I don’t know what a tap-room would charge, but I’m guessing around six bucks. My cost to make that drink at home is a buck, maybe a buck-and-a-half for a very strong double. It’s the same product. Very probably, the less I pay, the more I get. The price differences are all a matter of marketing.
I’m not arguing with you or with anyone else. I’m simply asking this question:
If sales price is off the table — as it often is — what are you going to do to move the product?
March 22, 2009 — 8:59 am
Teri Lussier says:
Greg-
I couldn’t agree with you more. And in this particular instance, in Barry’s own words: “We did start with it priced too high. The seller was “not in a hurry” and wanted to try a higher price. I said okay because he is a friend — knowing all along that it was a mistake.”
That’s thinking like a clerk. Barry was hesitant to be a salesperson to his friend- much easier in the beginning to take an order. Woulda, coulda, shoulda.
Who hasn’t done this? We’ve all been there and end up kicking ourselves like Barry is doing.
None of that changes this: Price, presentation, promotion. Barry says the price needs adjustment, and the presentation needs adjustment, and the promo is on point. Barry, being the expert in his own market, would know these things. We are taking him at his word. He says the seller can’t fix the presentation, maybe Barry can? What’s left? Price.
I had the same thought as Sean regarding the insurance: “The insurance is a great marketing tool, but not the answer to the original question. If buyers are afraid to buy because of employment, then none of the other homes would be selling either.” I also have to wonder why we would encourage buyers who are afraid of unemployment to strap on a mortgage, but perhaps that’s just my market.
March 22, 2009 — 4:06 am
Jessica Horton says:
“I also have to wonder why we would encourage buyers who are afraid of unemployment to strap on a mortgage, but perhaps that’s just my market.”
It isn’t about trying to get people to strap on a mortgage. It’s about leaders stepping up in the market place and doing what the government and all the politicians can’t: Inventing something, building a product, selling a service, making transactions happen to keep this country going.
It’s about encouraging consumers to begin taking baby steps and knowing there is someone there to catch them if their shaky little legs start to wobble.
It’s about confidence. Something many folks are lacking.
March 22, 2009 — 5:40 am
Joshua Hanoud says:
But they’re not the same product. The coats, the drinks, or the house. There’s a reason the others are selling (and if they’re not, then everything is overpriced.
With the coats you’re selling higher quality materials, probably better workmanship, better shopping experience, and more “cool” (location, location, location). All of that adds up to justifying a higher price.
Same with the drinks…it’s absolutely NOT just a matter of marketing…it’s a matter of the “experience” involved in sitting at the bar at cheesecake factory vs sitting at your kitchen table. You’re paying for more than just the alcohol, the product as a whole is the experience (location, location, location).
Your analogy is akin to comparing a screw in a ferrari vs a screw in a chevy and saying “the only difference is marketing”…well…that and hand-stitching, and a 200+ mph top speed.
I think your premise is wrong. If sales price is off the table, improve the product or put it in front of more eyeballs – either way costs $$. Take it from your kitchen table to The Cheesecake Factory (location, location, location). Then you have “cool” to market. Otherwise it’s just another screw without granite countertops.
If you put that house in a more expensive location, you can get more money than the similar houses in the current location. Otherwise you have to price it competitively for the neighborhood it’s in.
March 22, 2009 — 9:36 am
Greg Staker says:
Sales price is never off he table. Consumers pay more when they perceive more value. If the value is not there, the product must be sold at a price to compete with a like and kind product.
Marketing is what will determine which of the two similar products in price and value the customer will buy.
March 22, 2009 — 11:01 am
Roger Bintner says:
Barry,
I come at it from a slightly different perspective –
a. Check pricing here… http://realestate.overstock.com/real_estate/location-Tallahassee–FL/price-245001.330000 for a plotted graph of pricing for the area.
b. I Went to Zillow and looked at the neighborhood…you appear slightly high but in the ballpark.
c. Googled your listing address…nothing comes up…not you…not a site for the address…nothing! Suggestion…use Postlets or VFlyer to post your listing to all the other major branded search portals…and use Gregs egenu to build your own site from the address.
d. Your listing online… Suggestion- the house lacks curb appeal from the front picture of the house, the inside appears cute…some staging would help. Once all this is done….pay a photographer to shoot photos of the house….photos drive traffic…go to http://www.281129thAveS.com for sample HDR photos of a listing or check out Greg’s listing with HDR.
e. You have plenty of other ideas for localized marketing from Bloodhound Blog, sign, cards, flyers etc.
f. Price. Make sure your correct, and only you can determine that. Then do everything in your power to drive traffic and the BUYERS will tell you if you are correct. Page views without showings tells you there may be something wrong with your marketing. Without Traffic it’s a guess if you are priced right.
Good Luck!!
March 22, 2009 — 12:05 pm
Barry Bevis says:
A few details about our local…
The Tallahassee Metro area is MUCH smaller than Tampa.
Around 300K people… Our number of views and showings is normal for a house at this price.
Also- we are not declining like south Florida.
We are holding stable.
We also do not attract snow birds- We are a Government and University town
The “Lower the price” group is taking the easy way out – even if it is right.
I’m still looking for good ideas besides Lower the price.
Enjoying the comments.
Barry
March 22, 2009 — 2:52 pm
Teri Lussier says:
>If sales price is off the table — as it often is — what are you going to do to move the product?
Your dad started with a product that he marketed a particular way, to different markets, from the very beginning, right? Not the same with this product, which has already been marketed (or priced or presented) ineffectively.
So that’s why I suggested starting over. Take it off the market, if it’s legal. Make what changes are feasible. Buyer’s agent commission is a feasible change, yes? Minor staging is a feasible change, yes? Let’s forget changing the price for now, if that makes the game more interesting.
Now what? You redo the writing on the website. There’s nothing to suggest to me that this home is any different from any other home. Why did the buyer purchase this particular home? Let’s wax poetic about it, please. This home has something charming about it. I can almost make it out, but not quite. The seller will know some little secret about this property. What is it? Dig for it. Write about it like your life depended on it. I need to have an emotional connection to this space.
Can you make the photos larger? I’m squinting at the photos. Show me details about the property, now it’s big sweeping photos of the rooms. Isn’t there one little interesting thing? Create a tableau somewhere, and make the photos interesting. Shoot that tile in the kitchen from nearly the counter top, with the counter jutting across the photo at an interesting angle.
It looks like there might be interesting views from the windows, but I can’t really tell.
Landscaping? It needs colorful flowers- in and out. Ditch that lonely birdbath.
It’s quite masculine- is it a Bach Pad?
Why aren’t there hand towels and something more frou frou in one bathroom? Is that a squeezed tube of toothpaste sitting there? And great- a scale. I need to be reminded of how many Girl Scout Cookies I just ate. And in the other bath- is that a plunger handle? Or is that the toilet bowl brush handle in the photo? eek. ick.
The bedroom? Hard. I want an oasis in the bedroom. It’s clean enough, but let’s bring sexy back.
The deck! Wow what a great space for…What? Help me visualize what to do with that space. Potted flowers? Some outdoor lighting? I want to see that space at night- dramatic lighting? Can you at least open the umbrella?
The room with the desk that faces a wall? Can you flip that desk so it looks interesting to the room?
All the furniture is lined up against the wall. Move it around. Make it interesting. It lacks interest.
The kitchen needs to be funky and fun, not just functional.
The dining room is a rather somber place. As is the guest bedroom. And I’ll pretend I don’t see the paneled room. 🙂
It all looks clean. It looks well cared for. It looks uninteresting. I want to fall in love. I don’t want to settle. I have choices.
That’s presentation.
Promo- I discussed. Roll it in bits. Let the other agents, neighbors, move up markets know about the changes. Build excitement, build anticipation, build interest- you write marketing and promo pieces to appeal to agents, or to neighbors, or to move-up markets. All have different reasons for being interested in this place, so your copy is going to have to be different for each audience.
Maybe hold two different reveal parties- one for industry, and one for public.
Gov’t and University town? So this home has low maintenance materials? Easy care? Are you marketing this to the places that the Gov’t and U. will be reading about it? Using language that they respond to?
Although… lowering the price would prolly work too…
March 22, 2009 — 4:56 pm
Teri Lussier says:
And business cards- research BHB archives for “business cards workhorse” and you should come up with gold. Don’t be a cheap arse and print them up yourself- have a pro do it. Make sure you use compelling photos, which means you need to take new photos. Send them to the relo agents from the bases that feed Tampa- you say Gov’t, I assume military?
Walk yer own bad self to the University and post the cards in places where potential buyers will find them. Walk yer booty to the base and give a handful to whomever or place them wherever they will do the most good for your seller.
The BHB archives will also tell you how to walk neighborhoods and distribute them wisely.
But, to be blunt again, none of this is new. It’s all stuff that’s been right here. Stuff you could have been doing. For the past year…
The trouble with approaching a listing as a clerk is that it can stymies the creative process. The seller is in charge of the marketing “I want this price. I’m in no hurry. I want to test the market.” Soooo… We take that order. Then, suddenly the seller decides the next move and now we have to scramble for a solution when we knew the solution all along…
Well. Barry, you may not get what you were looking for but I’ve learned a lot. For that I thank you. 🙂
March 23, 2009 — 4:16 am