Sunday, March 26, 2006

Sometimes People Need Just a Little Motivation..

The Bubble has burst in South Florida. Sellers have crossed the denial stage and are firmly in the fear mode. Imagine dropping the price on your home $76,000 and you still have to throw in other perks to get some interest. As outlined in this sun-sentinel story , local sellers are pulling out all the stops in order to sell their homes.

"How do you lure home buyers in a slowing real estate market? Try a five-day cruise, $2,500 for furniture and even a one-year buyback guarantee as perks to make properties more appealing than the rest flooding South Florida."

"The couple made the necessary repairs and thought they had the house sold in January. But the contract fell through. Interest has been tepid since then as the real estate market softened. After knocking $76,000 off the $975,000 listing price, the Flynns also decided to give the eventual buyer and the broker one year with a personal trainer at the fitness club they own.A trainer for two twice a week is worth about $9,000, said Maria Flynn, a 32-year-old mother of two."

"In a cooling housing market, builders routinely offer cabinet upgrades and other freebies to new-home buyers and bonuses to their agents. And while sellers of existing homes have previously paid buyers' closing costs and broker bonuses to drum up interest, they're taking the incentives game to another level now that South Florida's five-year housing boom has ended."

"February's used-home sales -- the most recent available -- were down by more than 20 percent in Palm Beach, Broward and Miami-Dade counties, and median price increases are leveling off, the Florida Association of Realtors said last week. With the number of listings skyrocketing across the region, sellers simply can't stick for-sale signs in their front yards and expect the homes to attract interest, agents say."

"Although the perks are getting attention, some agents think they are unnecessary, even in a slow market. They say the best incentive to buying is a fair price."

"Wes Spicer, an investor/developer in Delray Beach, was tailgating before a Miami Dolphins game last fall, but he couldn't stop wondering how to attract buyers in a real estate market that already was starting to slow down.He finally decided on a novel approach: a buyback guarantee.If buyers are unhappy for any reason, he'll take back the property within a year at the price they paid, assuming the home is in at least the same condition. The guarantee is written as an addendum to the sales contract."People are looking for the gimmick, but there is no gimmick," Spicer said. "It's very stale right now. I'm trying to offer a spark."Spicer, 35, has yet to sell any of his 25 homes under the program, but he does have two contracts pending."

"Holly Schiller, an investor in Weston, has tried to sell a three-bedroom townhouse under construction near Fort Lauderdale beach for about six months. Schiller first dropped the price by $41,000 to $599,000, then decided about two weeks ago to make it even more interesting.Not only does the selling agent receive a $2,500 bonus on top of the commission, but the buyer gets a $2,500 credit toward furniture at Robb & Stucky in Boca Raton. The buyer also gets a free design consultation and free setup and delivery.Schiller, 51, said she doesn't mind forfeiting more than $5,000 in profit, if it results in a sale."There are a lot of listings right now," she said. "I want my property to stand out from the masses.""


At 9:24 AM, Blogger xSparta said...

I read so much about "Baby Boomers" that will bail out the Florida Real Estate market. I have been following these RE blogs for some time, and I don't agree with that opinion. I feel Florida has become an overpriced retirement state. Sure, boomers from the NE and CA would be able to afford it, but what about the mid-west where house prices have only risen 3-5 % a year! In addition the high priced NE market is also collapsing, so the boomers relying on being house rich for retirement, won't be quite a rich.

At 9:28 AM, Blogger xSparta said...

Oh, one other thing BigDaddy, this is the first time I have visited your blog and I think it among the best! It is now saved in my favorites.


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