Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,313,597 times
Reputation: 6471
Advertisements
In my area, just a few aggressive bank REO's have set the market for the moment. A foreclosed home that had owed $685K to the bank came on the market at $489 dropped to $369K after 90 days and the asset manager just dropped it to $299K!!!!!!! 12 acres 2 homes and 2 big shop buildings with a view.
I don't see how CB can manage this. Lets say a home for $300K gets reduced to $270K, that's 30K that someone is going to have to eat. I'd be instantly out of business if I tried it. Or as the joke goes, I lose 30K on every deal but I make it up on volume.
It is telling that their marketing guy came from the car business. Unlike autos, every piece of real estate is unique. This will be interesting to see what happens.
In my area, just a few aggressive bank REO's have set the market for the moment. A foreclosed home that had owed $685K to the bank came on the market at $489 dropped to $369K after 90 days and the asset manager just dropped it to $299K!!!!!!! 12 acres 2 homes and 2 big shop buildings with a view.
I don't see how CB can manage this. Lets say a home for $300K gets reduced to $270K, that's 30K that someone is going to have to eat. I'd be instantly out of business if I tried it. Or as the joke goes, I lose 30K on every deal but I make it up on volume.
It is telling that their marketing guy came from the car business. Unlike autos, every piece of real estate is unique. This will be interesting to see what happens.
And unlike autos, this is not inventory held by CB, but inventory on the market.
I.e., CB cannot set prices. Clients set prices.
You have to wonder... Will CB dump listings if the Sellers do not agree to 10% off?
In my area, just a few aggressive bank REO's have set the market for the moment. A foreclosed home that had owed $685K to the bank came on the market at $489 dropped to $369K after 90 days and the asset manager just dropped it to $299K!!!!!!! 12 acres 2 homes and 2 big shop buildings with a view.
I don't see how CB can manage this. Lets say a home for $300K gets reduced to $270K, that's 30K that someone is going to have to eat. I'd be instantly out of business if I tried it. Or as the joke goes, I lose 30K on every deal but I make it up on volume.
It is telling that their marketing guy came from the car business. Unlike autos, every piece of real estate is unique. This will be interesting to see what happens.
If i would have my house listed with CB and they would tell me I would have to drop the price by 10%....I would walk away....so I guess other realtors will get some new listings.
If i would have my house listed with CB and they would tell me I would have to drop the price by 10%....I would walk away....so I guess other realtors will get some new listings.
Sellers, not the broker or the agent, set the price. My sense is that CB forced the issue of a right pricing conversation between sellers and listing agents. 10% is too much for some homes and not nearly enough for others. A year from now, I suspect many will wish they had acted, now,
not too different from those who were for sale, this time, last year and still are.
No doubt some sellers will be put off by the promotion/conversation and open to a new agent/broker. In other words, they will continue to seek a listing agent/broker who will sustain their fantasy. And despite the fact- based evidence of closed comps and bloated inventories in most places, there is no shortage of agents who will take an overpriced listing.
Will this apply to bank owned properties as wel? I sure hope so!
Me too. This slow down can present disadvantages as well as opportunities. I had hoped to sell my primary home but, with the slow down in sales, I now will have to either sit on it for a while or accept less for it when it does sell. On the other hand the slow down in money loans will make it more possible that a certain bank-owned property I've been looking at will still be on the market in two months when I will first be able to make a cash offer on it.
What a joke! This brilliant idea is an example of the huge marketing costs that are often invoked by agents to justify the amount of their commission. This is, for all intents and purposes, CB advertising CB. What a waste of the homeowners' money (on top of the strong-armed 10% reduction in list price)!
What a joke! This brilliant idea is an example of the huge marketing costs that are often invoked by agents to justify the amount of their commission. This is, for all intents and purposes, CB advertising CB. What a waste of the homeowners' money (on top of the strong-armed 10% reduction in list price)!
I completely DISAGREE. This TACTIC has been used in Real Estate quite a bit over the last year. I personally have seen it with other agents, although it is mostly with a brokerage, and stated "this weekend all (participating) homes listed with XXX brokerage will be offered at a 10% off Sale Price" or something like it.
It isn't about getting advertising, but about trying to create some buzz, demaind, get the buyers to go and at least tire kick....
No homeowners will be "strong-armed".... they own the homes and set the prices. BUT if the house has been on the market longer than the avg. days on market, maybe it is time to change the price. AND if you aren't serious about selling.... GET YOUR HOUSE OUT OF THE MARKET!!!!!
I completely DISAGREE. This TACTIC has been used in Real Estate quite a bit over the last year. I personally have seen it with other agents, although it is mostly with a brokerage, and stated "this weekend all (participating) homes listed with XXX brokerage will be offered at a 10% off Sale Price" or something like it.
It isn't about getting advertising, but about trying to create some buzz, demaind, get the buyers to go and at least tire kick....
No homeowners will be "strong-armed".... they own the homes and set the prices. BUT if the house has been on the market longer than the avg. days on market, maybe it is time to change the price. AND if you aren't serious about selling.... GET YOUR HOUSE OUT OF THE MARKET!!!!!
have a nice day : )
shelly
Well then, the principal beneficiaries of this tactic are the people who are not paying for the advertisement. Keep it coming - I loves me some free advertising. But I don't loves to pay for advertising that just churns the water and basically amounts to a "Get Real Estate" billboard. I would also hope that none of the advertisements hang around after the special weekend. Then you're basically telling buyers that all your stock is now 10% overpriced. It's really ridiculous.
I am a Coldwell Banker Residential Brokerage agent and my company is participating in the 10 day sale which starts on Friday. I have a listing which will take part in the promotion. I just read all 3 pages of this thread and as usual, there are a lot of misconceptions stated by those who don't know the facts.
a. The promotion is voluntary, nobody is "strong arming" sellers into doing anything, those who wish to participate and get the benefit of a large marketing push.
b. Not all sellers are reducing by 10%. In my market there is a sliding scale based on the existing list price.
c. When the price that a home sells for is reduced, the marketing fee split between the listing agency and the selling agency is reduced.
d. Agents don't set prices, the sellers do. We suggest an initial pricing position that we believe will generate buyer traffic and offers. The seller can take our advice or hire an agent who is willing to take the listing at different price.
e. The sale starts on Friday the 10th and runs through Sunday the 19th.
f. Sellers have the option to change their list price, leave it at the promotional price or reduce it further - as always the sellers decide where they want their homes positioned.
g. No listings will be "dumped" if they elect not to participate. Listings come on and off the market every day and will continue to do so.
h. This is not Coldwell Banker advertising Coldwell Banker. This is a forward thinking company that is offering an innovative program designed to get some interest and excitement into an industry which has been drowned in bad news for the past three years.
i. My company and I are paying for this marketing. We're taking on all of the risk and expense and the seller pays the fee they previously agreed to only if we are successful. Despite all of the additional promotion and attention participating homes will get, their fees will not increase. This promotion has already run in certain parts of the country and homes were sold. It was successful enough to repeat this fall.
AND if you aren't serious about selling.... GET YOUR HOUSE OUT OF THE MARKET!!!!! have a nice day : )shelly
I have to spread it around before I can rep you, again.
I am astounded by the number of people who persist in "testing the waters"- probably 70% of the inventory, in my area.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
