Real Estate Groupon? Sales Meeting August 15, 2011
Group Coupons Popular for restaurants and spa treatments Until recently, no one had made the link between real estate and collective discounts. A group deal doesn't mean you must buy a house with a bunch of strangers. It just means that a real-estate agent will give you a bargain once a certain number of people have bought the same coupon. Deals from real-estate agents and brokerages include: Commission discounts or rebates. Cash gifts at settlement. Gift cards to home stores. COUPON! GREAT DEAL!
How It Works A minimum number of customers must buy the deal Deals are offered for 3-7 days Not impulse buys Gives customers time to see the deal, make an inquiry with the agent & decide if they want to purchase Great way to gain exposure, reach out to potential new clients Real-estate coupons can be a valuable bonus as long as customers understand the details Group-coupon buyers must work with the agent or brokerage that offers the deal View slide
HouseTipper.com Real-estate agents don't pay anything, HouseTippergets paid when the consumer buys a deal There's a preapproved commission that goes to the merchant and fluctuates according to the deal HouseTipperwill refund the cost of the coupon if: The customer doesn't buy a house They don't like the agent and want to work with someone else View slide
Example of Success! Prospective homebuyers paid $50 for the coupon and will get $2,500 in cash at settlement as long as they close within one year of the coupon purchase date and buy a home for $350,000 or more. Recently offered deal through HouseTipper.com; Paul Gorney, real-estate agent with Prudential Rubloff in Chicago.
Example of Success! “I've sold at least seven of these, which is a great way to meet new clients. I really encourage everyone to call an agent before buying one of these, though, because you want to make sure are choosing someone with whom you can work.” Paul Gorney, real-estate agent with Prudential Rubloff in Chicago.
Example of Success! Dream Town Realty in Chicago offered a deal through Groupon in April for $25, which would give homebuyers $1,000 back at the closing, provided they bought a home by the one-year deadline for a minimum of $150,000.In less than one day, more than 50 people bought that coupon.
Example of Success! Hounshell Real Estate in Washington, D.C., offered a group coupon through The Capitol Deal, a website owned by The Washington Post. The Hounshell deal had cost $50 and offered up to $6,000 off commission for buyers or sellers. It is refundable if a home is not sold or purchased within one year.
Example of Success! We have a sliding scale for the commission discount according to the sale price, From $1,500 for a home between $200,000 and $400,000 Up to $6,000 for homes $800,000 and above We wanted to make sure the deal is worth it for customers and also (add incentives on) the higher end of the market Greg Tindale, a real-estate agent, HounshellReal Estate in Washington, D.C.
Etc. Real-estate agents in some states are not allowed to give commission rebates Important for consumers to read the fine print and call the agent before purchasing a coupon to make sure it will work for them Most people don't think to ask for a cash gift or to negotiate the commission when they are buying a home, so this is essentially doing the negotiating for them
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