I've Walked This Road Before
I went into the real estate business in 1994, shortly after disposing of my interest in an advertising agency in Tampa. At that time, we were experiencing a very strong buyer's market. Getting listings was easy. Selling them was hard -- darn close to impossible. It was common for residential property to remain on the market for eight to ten months before finding a buyer.
In order to overcome this problem and get their properties sold more quickly, many homeowners and developers resorted to some really interesting bonuses for buyers and their real estate agents. Things like "buy the house at the listed price and the boat hanging on the davits stays with the property", and "certainly the seller will throw-in the antique dining room table and chairs", and "buy now and get club membership dues paid for one year", and there was the ever popular "$1,000 Realtor bonus if your client buys before December 31st".
It would appear that we have come full circle. By that I mean that we must be back in a buyer's market because sellers and developers are resorting to the same tactics. The only real difference is that the incentives are larger and reflect America's new affluence.
Recently while searching for property in the MLS, I found a seller willing to include the Lexus automobile housed in the condo garage. Some brokers have upped the commission from the substandard 2% to a much more appealing 4% for buyer's agents. Since cash always talks loudest, "bonuses" of $2,500 to $5,000 are becoming more common on higher priced homes. Not to be outdone -- and probably more desparate for sales -- area developers are including heavy incentives. I've seen some as high as $10,000 to the buyer's agent with discounts of up to $50,000 directly to the buyer. If you're buying one of those multi-million dollar waterfront homes on the end of a finger on Isle of Capri or Paradise Island or Snell Isle, you can probably get the owner to throw in the yacht moored in the back yard -- just play your cards right.
They say real esate runs in cycles. I guess that's true. I've been in real estate for quite a few years now, and it seems to me like I've walked down this road before.
In order to overcome this problem and get their properties sold more quickly, many homeowners and developers resorted to some really interesting bonuses for buyers and their real estate agents. Things like "buy the house at the listed price and the boat hanging on the davits stays with the property", and "certainly the seller will throw-in the antique dining room table and chairs", and "buy now and get club membership dues paid for one year", and there was the ever popular "$1,000 Realtor bonus if your client buys before December 31st".
It would appear that we have come full circle. By that I mean that we must be back in a buyer's market because sellers and developers are resorting to the same tactics. The only real difference is that the incentives are larger and reflect America's new affluence.
Recently while searching for property in the MLS, I found a seller willing to include the Lexus automobile housed in the condo garage. Some brokers have upped the commission from the substandard 2% to a much more appealing 4% for buyer's agents. Since cash always talks loudest, "bonuses" of $2,500 to $5,000 are becoming more common on higher priced homes. Not to be outdone -- and probably more desparate for sales -- area developers are including heavy incentives. I've seen some as high as $10,000 to the buyer's agent with discounts of up to $50,000 directly to the buyer. If you're buying one of those multi-million dollar waterfront homes on the end of a finger on Isle of Capri or Paradise Island or Snell Isle, you can probably get the owner to throw in the yacht moored in the back yard -- just play your cards right.
They say real esate runs in cycles. I guess that's true. I've been in real estate for quite a few years now, and it seems to me like I've walked down this road before.
-30-
posted by Terry Ward at 5:47 AM
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