The downturn of the economy impacted the housing market, causing decreased sales. However, California Realtors have new tricks in their bag and they will do anything to attract potential qualified buyers. If you are in the market for a home that is $1.5 million and up, your realtor might greet you on a “red carpet” or even “in a helicopter to view properties for sale.” Recently the “competition for qualified buyers is fierce.”
Agents are going to extreme lengths to attract guests to open houses. One agent promoted a new condominium project near the Beverly Center, by placing young male and female models in “velour robes and flip-flops” serving up free drinks.
Another agent, highly concerned with the guest turnout, hired “a stilt walker, shirtless male jugglers and a contortionist who floated in the pool, encased in a clear plastic bubble.”
One can’t help but wonder, “Are we at the circus or at an open house?”
The line seems to blur when desperate real estate agents are willing to spend their own money to stage these lavish, exotic, luring sales tactics. Ben Salem, an agent who works for Sherman Oaks Rodeo Reality, claims “We want to treat them like royalty.” Like many agents today, Salem is quite aware of the shrinking pool of buyers that are qualified.
There is no end for the creativity of Realtors considering the fact that Michael Gardner, a Malibu-based agent, “hired young women to give guests Thai foot massage out by the pool. He also raffled off Botox treatments.”
It seems that certain Realtors have adopted the mindset of outdoing each other to corner potential high-end buyers. Clearly desperate times call for desperate measures and Realtors are willing to “go all out to market luxury homes.”
Wow! I had no idea that real estate agents would actually go to such great lengths to attract people to an open house. While I understand that the economic downturn has probably made it really difficult to sell homes, I think making an open house into such a spectacle is ridiculous. I think that people who are looking for homes in that price range aren’t going to be swayed to come to a house just because there are men and women in velour robes handing out drinks. This may actually have the opposite effect because people who don’t have the money will be curious and come to the open house instead.
ReplyDeleteThanks for bringing our attention to this!
I agree that it is a bit ridiculous as well. However, I feel that since there is such an increased level of competition to sell to qualified buyers, Realtors are resorting to these measures. I also agree with you that this method might attract those who want to freeload on the party, yet i would assume that most Realtors would know how to ward off unqualified buyers.
ReplyDeleteThis is when the "you do what you gotta do" mentality comes into play. Honestly, I had no idea that realtors were going through such great lengths to attract buyers, but then again do they have a choice? Yes, what they're doing may seem odd and weird, but due to stiff competition these are the kind of things that they have to resort to. When the economy took a hit with the recession, the housing market seemed to suffer the most (at least in my opinion) and people were very reluctant as to how they would spend their money. I don't necessarily agree with what the realtors are doing, but if it is working, then kudos to them.
ReplyDeleteWow, they really are going all out to attract buyers. I have heard of quite a few publicity stunts and other activities to attract buyers for high-end homes, and the ones you mentioned are certainly pretty over the top. However, sometimes the market needs a little nudging and I suppose these real estate agents are just doing what they can to attract the potential buyers they need. I'm all for it though, buying a home, especially in this economy is already stressful enough, if agents can reduce that stress by making the process easier than more power to them.
ReplyDeleteI always knew that real estate agents would do nearly anything to make the sale, but this is taking it to a whole new level. Now that the economy is at a slow point, these agents are getting desperate to attract buyers. I highly doubt that a person will drop a million plus on a home because some half naked person handed them a drink or if they received a foot massage poolside, but I do agree with A.W. that such attractions may reduce the pain of sinking so much money into an asset. I’m curious to see how many people attempt to take advantage of these rare attractions with no intention of purchasing a home. As soon as I saw this article, I thought of used car dealerships and how they always have those obnoxious inflatable whateveryoucallits, petting zoos and bounce houses. There’s an age-old saying "it takes money to make money," so if this is what it takes realtors in this market to lock in a sale, more power to them.
ReplyDeleteWow! What in insight into a ridiculous social phenomenon. Clearly this has more of a circus than an open house as you so eloquently put it. I doubt that realtors will be able to go to these ridiculous lengths for long, especially if the market stays in this slump. Many realtors will be weeded out by an increasingly difficult market to succeed in and will be forced to look elsewhere for income. Inevitably though, the market will snap back - as soon as realtors have faith in accepting credit, not cash.
ReplyDelete