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Blue Light Special on Homes! Are you making this clear?

By
Services for Real Estate Pros

Listening to Dave Ramsey yesterday he made a point that caused one of those classic lightbulb above the head moments.  Aha! He compared the current real estate market to the Blue Light Special at Kmart.

A perfect comparison!  The market is coming back but homes are still selling at bargain prices throughout the country.  Are you making this point clear to potential buyers?  If not, you are missing out on a huge amount of business.

Real Estate agents are sometimes guitly of touting "Now is the time to Buy" when it may not be so.  You must make it clear to your buyers that there really is no better time than now to buy.  Seeing is believing.  Show potential buyers proof.  It is like a map at an amusement park.  You need to show them the You Are Here mark.  "Houses were selling for this, now they are selling for this."  Show them a graph of real estate trends and make the point that right now the market is here but the market always rebounds and will come back to this point.  Ask them, "At what point on this map would you rather buy a home?".  Don't just show potential buyers current interest rates, show them past interest rates to illustrate how great of an opportunity these rates really are.

Remind them homes are not "For Sale" they are "On Sale".  And luckily, so are interest rates. 
What are you doing to illustrate the Real Estate "Blue Light Special" to potential buyers?

Ryan & Sheri MacDonald
Re/Max First - Calgary, AB
Calgary Home Team

Well put Jennifer, great apporach.

Apr 25, 2010 09:31 AM
Ryan & Sheri MacDonald
Re/Max First - Calgary, AB
Calgary Home Team

Well put Jennifer, great apporach.

Apr 25, 2010 09:31 AM
John Howard
Century 21 LeMac Realty - Mountain Home, AR
GRI, Mountain Home, Arkansas 870-404-3614

Thank You Jennifer!  You are on the mark!  Good reminder to show comparison of interest rates, not just a static number.  Have a Great Week!

Apr 25, 2010 09:33 AM
Jeff Baxter
Jeff Baxter Mortgage Team - Bethany Beach, DE

Not so sure houses are really on sale, but affordability is certainly better than it has been in years.  Even when the ill-conceived tax credit goes away, home affordability will remain strong because of low interest rates and low prices.  I think the stronger motivator to get folks off the fence is the almost certain rise in interest rates over the coming year or two.  If you are looking for housing then the incentive to buy now versus later is our continued low level of mortgage rates.  The rate a borrower pays on a mortgage has a great impact on the overall cost of a house - definitely more so than savings an extra $10,000 or $15,000 off the price.  You might be better off saying there is a blue light special on mortgage money that is ending soon.

Apr 25, 2010 09:55 AM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Opportunites abound in this marketplace with the combination of the tax credit, low prices and low mortgage rates.  It is critical for the mega agent to stress that to those buyers they are working with that are on the fence.

Apr 25, 2010 10:23 AM
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee Californ

Prices are more realistic now and interest rates are low so it's a bargain to buy now for "most Folks' if they are ready and able to own their own home.

Apr 25, 2010 10:40 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Purchase power has never been greater !!! After the tax credit ceases buyers can EXTRACT an extra 8k !!!

Apr 25, 2010 10:52 AM
Paige Walker
Paige Walker - Pineville, LA
Real Estate Guru - Alexandria Pineville LA

Great job Jennifer! Congrats on your Featured Post! You amaze me!

Apr 25, 2010 12:23 PM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Jennifer, 

I love the way you presented this.  Buyers want an incredible deal, what they don't realize is that these deals won't last forever.  Just like very few saw this big downturn coming, I am suggesting that very few will see the upturn.  (I wish I knew when, but boy will folks be saying, I wish I bought in 2010!)  

All the best, Michelle

Apr 25, 2010 12:34 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

I like the analogy, but I'm uncertain when prices will return to their pre-sale prices.  It could be a long road to full recovery.

Apr 25, 2010 02:20 PM
Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Hi Jennifer~  It's as if we should be saying "Attention K-Mart Shoppers".....But then again, not everybody shops at K-Mart!  There are some areas that it is more obvious then others that the deals are so much better!  It really boils down to location....

Apr 25, 2010 02:38 PM
Lynn Johnson
Coldwell Banker Home Connection - Owatonna, MN
Owatonna, MN Real Estate

Jennifer - Isn't that the truth?  I spend a great deal of time trying to get that point across to buyers who have expectations even beyond "the deals" that our market provides right now - competitive prices, great inventory, and terrific rates.  I use graphs and relevant articles.  Best of luck!

Apr 25, 2010 02:42 PM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Jennifer, great analogy and love the idea of the visuals!

Apr 25, 2010 03:22 PM
Duane Murphy
Expert Real Estate Partners LLC - Appleton, WI
Broker- Owner-Real Estate -

Thank you Jennifer, you have just gave me another thing for my MUST DO list!!!

Apr 25, 2010 03:42 PM
Dennis Puckett
Adams,Cameron & Co. - Deland, FL

You gotta love Dave. That is a great analogy. I currently use market updates with graphs. It's a great tool.

Apr 26, 2010 04:35 AM
Billy Studstill
Victory Realty, first time home buyer, foreclosure - Mount Juliet, TN
First Time Home Buyers, Foreclosure, Luxury

this is a great way to look at the current market situation. i am going to start incorporating some of this lingo!

Apr 26, 2010 08:50 AM
Julie Ferenzi
john greene Realtor - Plainfield, IL
Julie Ferenzi

Excellent comparisons Jennifer!  They don't know... what "they don't know".  It's our job to tell them!

Apr 26, 2010 02:03 PM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

We are getting about to the bottom, not quite sure if we are there yet. Here they are giving them away or at least back to the bank.

Apr 26, 2010 02:47 PM
Damon Gettier
Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA
Broker/Owner ABRM, GRI, CDPE

These are good points to ponder for home buyers.

Apr 27, 2010 06:53 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Some buyers lost out on the opportunity for the tax credit because they waited too long. Great post.

May 18, 2010 11:53 PM