Korn Team Interviewed by NBC Action News in Kansas City
For Sale By Owner's idea to offer incentive to get more activity on home. This interview aired on 8/14/2010. Lisa Benson, reporter for channel 41 contacted us to get our comments regarding s
ales tactics in this market.
A Lee's Summit, MO couple was offering their 1997 Honda Accord as an incentive to purchase their home. The car had 75,000 miles. The house was listed in the $300,000 and they figured they would try to do something to set them apart from the other homes on the market.
There is only about 15 s
econds of our interview in this clip, however the message was that an incentive like that may work to get more attention to the house (especially if you get a story about the deal on the 10 o'clock news!). However, I did mention that an older car with lot of miles most likely will not get someone to buy a house. The price of the property still has to be right. In fact, in this market, you won't get 2k-4k-6k more for the property just because a car, or in other cases...a TV or something that is being added as an incentive. Now, if it were a new Porsche or Mercedes, I bet you could find some buyers that might pay 5k more than they would without the incentive...however you probably are not going to get 30k-80k more than the property is worth.Simply put, Real Estate works on the exact same principles we learned in high school economics 101. Remember supply and demand? When there are 10 homes on the market and you are the 10th most expensive home, you will make the #1-#5 position look like a great deal! And, the buyers probably are not going to pay for the most expensive home in a neighborhood just to get a free car, TV, furniture, etc. They will still pay fair market value and just get those items as a bonus! The house already sold itself, and that is why the home owner would be looking at an offer. Also, don't forget the property still has to appraise for market value, and the appraiser won't give a car or other incentive any value.
So, those incentives are great to get more eyeballs on the property, just understand that you are truly just giving those incentive items away as a free gift. It won't guarantee you a full price offer...just that more people will come look. Now with proper staging and pricing in the market you are in, you can get the same, or better traffic, be competitive and still get top dollar.
If you would like to find out how you can truly take advantage of this market and get top dollar for your property, contact The Korn Team for a FREE market evaluation for your property. You can visit us online at www.kornteam.com or contact us directly at 816-224-KORN (5676). The Korn Team has already sold, and closed over 60 properties between Jan-Aug in 2010. Best part is we are averaging 97%-98% of our Seller Clients asking price. That is 3-4% higher than most agents in the area.
Watch the Interview now:
Brad Korn
The Korn Team
Serving Greater Kansas City
brad@kornteam.com
(816) 224-KORN (5676)
