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Stalking the Sales Office

I was showing new construction properties the other day and something unique happened when we were leaving the sales office. We were pulled over by a homeowner who is trying to sell his own home in the development. Actually, it's listed with a broker but the homeowner is desperate and is taking it upon himself to "help."

I thought it was a pretty agressive tactic on his part to park on the street watching the sales office and stopping everyone who left. Talk about a captive audience and a warm lead.

The builder has been in this community for over a year and will be there for at least another three. If you're in the phase I section trying to sell your home (like the stalker) it's pretty difficult to compete with the builder and the incentives they're giving out in this market. Market conditions being what they are, the builders prices for phase II homes are considerably lower than phase I...ouch. More than 50K lower. They're also offering 4% towards closing costs and incentives galore. Besides that, builder list prices are no more than suggestions nowadays compared to just a few short years ago.

This particular homeowner feels that the builder threw them under the bus when they reduced the prices in phase II so he doesn't feel any qualms about grabbing people coming out of the sales office.

This isn't the only development where builders have reduced prices in Maryland. The land is bought, the engineering is done, permits have been granted...time to cut profits and get some sales. Clients from earlier sections, well, they're on their own.

In the past you could pretty much count on getting into a new development early and just sit back and watch the prices rise. Now it's not a plus because builders just keep dropping prices and increasing incentives to move houses.

Competing with other resales is one thing, competing with a builder to sell your home in a new development is something entirely different. Agressively stalking the sales office may not be a bad tactic.

Posted by Richard Iarossi on 07/19/2008 01:21 PM

Comments (9)

new construction, builder, incentives

This post has been included in Maryland Information

9 Comments on Stalking the Sales Office

I love it when sellers and buyer stalk us, hell we are always stalking them.

Take care!

RJH

07/19/2008 01:28 PM

by Empire Realty

This could be a good candidate for a short sale .. seems very desperate

07/19/2008 01:30 PM

by Fernando Herboso Real Estate Maryland, DC and Virginia (Choice Real Estate )

Builders often forget that their best advertising is a happy homeowner. Perhaps builders need to come up with Plan B to keep their homeowners happy. Even in today's market, there must be something builders can do to keep homeowners happy and still provide incentives to potential buyers. Perhaps, they need to think outside the box.

07/19/2008 01:41 PM

by Sharon Parisi, MLA, ABR, GRI, SRES, HHS (Keller Williams Realty)

I always appreciate an aggressive seller ... or buyer for that matter. I think it's commendable to the seller to take matters into his own hands and do what he can to get his home sold. He owes nothing to the builder at this point.

07/19/2008 01:45 PM

by Patrick Lambert (Century 21 All Islands)

A sign of desperate times!

07/19/2008 02:00 PM

by Karl Nettgen (Century 21 Agate Realty)

Interesting tactic. However, I believe that many of my new home buyers would be unintererested in a resale home.

07/19/2008 02:03 PM

by Vickie Nagy, Realtor, Specializing in San Ramon, Danville & the Tri-Valley! (Empire Realty Associates)

I am loving the phrase "threw them under the bus" lately....

You said "This particular homeowner feels that the builder threw them under the bus when they reduced the prices in phase II so he doesn't feel any qualms about grabbing people coming out of the sales office."

I've seen blog comments from people who feel like the builder "threw them under the bus" lately locally. Not all because they are selling but because they bought and the market slowed down and the development isn't where they think it should be... construction traffic, muddy roads... people are funny.

Welcome to AR Richard.

08/13/2008 07:41 AM

by Maureen McCabe - Central Ohio real estate (Real Living HER)

Desperate times call for desperate measures.

I know some home inspectors who park outside of open houses and pass out discount coupons to anyone going in/coming out. One even took his two young children with him and had them pass out discount coupons. I thought he would make a great politician, using children in his marketing like that. LOL

08/27/2008 09:09 AM

by Russel Ray, San Diego Marketing & Business Consultant (Russel Ray)

LOL! I just moved into a new community myself this past year and THANK GOD the builder just sold the last 2 remaining homes because I just put my neighbors on the market since he is relocating for his job. Since I don't have to compete with other homes that have "NO UPGRADES" that are priced $50,000 - $75,000 less we are getting a very large amount of traffic (NO OFFERS YET THOUGH)! Tell your buyers to come and take a look at it if they want to move to Baltimore County, Perry Hall! Thanks for your comment on my blog post and WELCOME TO AR! It is good to see some fellow L&F Agents here!

08/29/2008 07:36 AM

by Michael Klijanowicz - Relocation Specialist - Baltimore & Harford County (Baltimore & Harford County Maryland - Long and Foster )