I participated in a brain storming meeting held at our office last week where we all met to discuss our strategy for attracting buyers in our real estate market.
Many ideas were shared about how to attract buyers and here was my two cents.
Many of us blame the press for fueling the weak real estate market in many parts of the country but look at what many of us do with our own advertising. We advertise things like:
- Price slashed!
- Owner anxious!
- Price reduced!
- Owner motivated!
- Will look at any offers!
- $20,000 price reduction!
And on and on and on. In my opinion this kind of advertising just reminds everyone how bad the real estate market is in many parts of the country and helps fuel the negativity.
I went on to share with our group that instead of this kind of advertising try to "Offer Opportunities". For instance, if the current mortgage rate is 6% then get your seller to buy down the rate to 5 ½ or 5 1/4 % and promote the payment and the features of the home. Write these kinds of ads and advertise them in your local newspaper or on Craig's List:
"Only $750/month, 4 bedroom, 2 bath home, over 2,500 square feet, walking distance to all schools, 3 car garage. Call now!"
Don't believe me? One of our agents told me he had been posting listings on Craig's List for more that 6 months and not one call. He asked me to help him write a good Craig's List ad with a link back to his site as I suggested. I showed him how and he posted several listings last Friday afternoon.
To his amazement he had two phone calls and two showings directly from his Craig's List Ads that weekend!
So let's stop advertising how distressed sellers are and start advertising buyer opportunities. The sooner we start doing this the sooner many real estate markets can get on their way to recovering.
One caveat: I spoke to the finance department of the state of Idaho and to the HUD regional office early last year about regulation Z and disclosure. I was told that if no interest rate was quoted I did not have to disclose an APR (annual percentage rate). However, if I did quote an interest rate I MUST disclose an APR. Check with the finance department and the HUD office of your area for the regulations you need to follow.
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Posted By: George Tallabas - Boise Idaho Real Estate Agent - Associate Broker
with RE/MAX Advantage, Canyon Counties #1 Brokerage in sales and listings
specializing in Boise Idaho Real Estate and Southwest Idaho Real Estate.
Ana - Thank you my friend.
Lindsey - Try this and link the ad back to your site and watch your world change!
I'd be remiss if I didn't point out that you can get into trouble under Truth in Lending laws for mentioning a monthly payment or interest rate in advertising without identifying the APR rate. Just sayin' . . . Be careful.
I was thinking the same thing as Elizabeth.
I've tried adding a back link to my website, the only way I could do it was to do http://www.pamgraham.com (sorry I'm not trying to add my link here). Is that correct? I know it's better to have keywords instead of showing the pamgraham.com, so I didn't know if I was missing something.
I agree! I posted on Craigslist, just trying it out and to my surprise I sold a house from Craigslist! It IS all about the verbiage!
I also received several listings because of how I advertised a Seller buy-down on another property in the paper, they just wanted someone to do the same for them.
It's more always been and going to be important to set yourself and your listings apart from others!
Hi George,
Bob here, I've always posted on Craigs list any listings we get. Haven't sold any from there but do get resposes. Good positive spin also.
Thoughtful post. Thanks for the timely information.
The advertising opportunity instead of misfortune is a great angle and should reap more results for you. I like your example and will share it with our agent members.
Rebecca D. Levinson-Connect2Agent
George,
That is a great concept. One of my favorite lines.... "Change the way you see things and the things you see will change". By changing the way you are representing the housing market, we can actually change the housing market..... one ad at a time.
George, I agree that we shouldn't be feeding the news media with more negatives. I do agree with Elizabeth, that you do need to include the facts as they are based on the APR, number of years, and that Taxes and insurance are not included and will affect the final payment, and cover yourself. I for one would like to give it a try myself.
Do you have any disclaimers about the financing? I am just curious with Reg Z and all. Do you work with a lender or figure the payments on your own?
CONGRATS ON THE SUCCESS!!
One of the things I really like with Craigslist is that I can see the result of changes pretty fast.. especially with Google Analytics on my sites.
Great strategy.
Excellent! Simply excellent! Thank you, my friend!
While some of us want to know all the details (i.e. rate, terms, concessions, tax increases, etc) there are many, many more that purchase homes, cars, TVs, etc based on how much the payment is. The details are not important to them.
Perhaps I shall re-vamp some of my ads and see what happens!
George... that's great.. just keep working it and using the positive approach... and most of all, being creative as you did....
George,
It's good to hear that you're having success with promoting strategic financing. It is still unique in my area to promote strategic financing as a seller incentive instead of another price drop. There are programs which allow for rate reduction buy down for one or two years as well as a program which allows for a payment abatement for up to 6 months which can be offered by the seller. Its certainly a great way to uniquely market a home which I suspect would be successful for the innovative Realtor. I've encouraged the agents that I work with to utilize these programs but have received a lukewarm response.
Dave
We are doing the same in our local offices, we have mortgage incentives where the Seller agrees to pay the buyers mortgage for up to 6 months (It could be 3, 4 or whatever). It's very new, but we're just starting to put together these incentives and advertise them to our buyers and sellers. The money is held in escrow at the closing and paid by the bank. I'm sure it is going to generate some very interested buyers.
George - what you did on craig's list was really cool. I need to get that stroke in order too,
cheers
George I love your positive attitude and your drive! The comments are all great and exactly what I enjoy hearing. Having said that please do not take this as a slap on the hand because you are interested in doing the right thing but here's where a lot of agents get themselves in trouble and it's per Reg Z 226.24 (paraphrased) when you advertise a payment you must also advertise the amount of the down payment, the terms of the repayment and the annual percentage rate. (Reference c.iii and c.2.i through iii)
And you are right, craigslist and proper draw phrases are a great combination!
AMEN! Enough bad press on the back of the seller...Buyers need to be refocused at this time in the game!
Congrats on the great response, I too love Craig's List, have you been using Postlets (sp?) at all? Just getting up on that feature as it's supposed to save you from recreating the wheel every time. Thoughts?
Craig's List is on my 2008 "to try" list. Thanks for a thought provoking post.
Hi George - Love your creativity. Be aware that regardless of what your local contact person told you, according to Regulation Z there are 6 very specific triggers that require APR:
This information can be found is section 226.24 Advertising of Regulation Z
Thanks to all for stopping by and sharing. Have a great evening.
Thanks for sharing, George! This is a great reminder that tweaking our strategies can produce great results!
Brian Wilson, Zolve.com
George, You're an out of the box thinker. This is a great way to advertise a listing. I'm still confused about disclosure. I operated on the premise that if I state a monthly payment, I must state the specific terms. Some of the comments here seem to indicate that that's not necessary. That would be great news.
Sandy
Thanks for Sharing George! Great post as usual! I was most interested in your comments on how most in our industry pitch a product. It really sounds negative.
"Many of us blame the press for fueling the weak real estate market in many parts of the country but look at what many of us do with our own advertising. We advertise things like:
I have tried different entries even into our MLS, an advertising. I try to have a more positive spin! I know it is a lot more effective!
GRANT PROGRAM...use it as a tool to sell more house or list more houses
Liberty Grant
use the grant as a tool to list more houses...all your buyers will have a down payment grant to use to buy your listing
put a sign on the front of the house.."down payment assistance program
With our exclusive Liberty Grant and the use of Government Insured financing guidelines, you can buy a home with little or no cash out of pocket!
Lend America is the exclusive lender chosen by the not-for-profit, community development organization, Nehemiah Corporation of America, to offer the Liberty Grant. This homeownership grant provides gift funds for those who need additional money in the pursuit of homeownership.
We are proud to be a part of this amazing opportunity because the Nehemiah Corporation has helped over 600000 individuals and families get into the home of their dreams with down payment and closing cost assistance as well as homeowner counseling to advise them on what to expect and to cut out the red tape of buying a home.
The Liberty Grant is not limited to first-time homebuyers. Anyone can qualify.
If you qualify for an FHA loan you automatically qualify for the Liberty Grant!
The Liberty Grant offers a gift of up to 2.25% of the home purchase price toward your closing.
There are no credit or income qualifications for the grant.
The Liberty Grant is a true gift with no repayment of gift funds.
Everyone is included - even if you have the money for a down payment you still have access to use the grant funds. However, we prefer that you keep most of it for reserves.
judith boggio 631 813 1444use this to advertiseGood idea, and I certainly agree with your thoughts. In New Jersey I would have to also pay for a number of lines of advertising to explain how I arrived at the "Only $750". It is amazing how different the laws and rules are from state to state.
Good luck and keep sharing.
Tina - Thank you once again. Take good care.
Jo Ann - Thank you and good luck to you as well.