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Brian Kennedy - WWW.IHMGroup.Net

In a field of look-a-like's, how do you stand out?

By: Brian Kennedy
Friday, April 20, 2007 3:53 PM

We have all had condo listings where we have all gone into the contract knowing that:
1. The price was right in line with comps
2. The unit has features unique from others in the area
3. Sellers so motivated they are willing to throw in parking and storage as incentives

My problem is that this unit is in a building with 26 other identical units up for sale and is getting lost in the shuffle.
I have spoken with other brokers who all tell me that their listings are stagnant as well despite expressed interest from the buying public.

We have done a full-scale marketing blitz - good attendance but nothing
I have offered gift cards as incentive to buyers who show up for tours - good attendance but nothing
I have had open houses catered with entertainment - good attendance but nothing
I have even had a colleague bake cookies during the open houses  - good attendance but nothing
We have held theme open houses for different business groups - good attendance but nothing

The good news is that there has only been 1 sale of a 1BR unit in this particular building in the past 3 months. 
A second unit is on contingent and a third under attorney review. There is some movement however small. 
This unit is truly spectacular and is listed as an investment property.
The odd thing is that the other units that have contracts are on lower floors, have lower monthly lease amounts, are priced higher and are all investment properties. 

Am I missing something? 

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Comments

Lew Corcoran
Member Since '03

Lew Corcoran said:

26 units listed and only 1 unit sold in three months? Wow. If I was a Buyer, I'd low ball an offer or otherwise wait and watch the price drop, and drop, and drop, and drop. You also mentioned that (or sounds like) there are a lot of investment properties. In case you haven't checked, most mortgage companies won't provide a mortgage on a condo unit if the total number of units rented out exceeds somewhere between 40% and 60%. All in all, it sounds that pPerhaps you're marketing to the wrong crowd - perhaps you should be marketing investors.

April 20, 2007 4:57 PM
Mark Cohen
Member Since '03

Mark Cohen said:

If the association rules won't allow you to repaint the outside with purple and yellow stripes to differentiate it from the others, you may be wasting your time and money trying to sell something that has a dead local market.  I agree with Lew that you should be marketing to investors but they are probably scarce too.  Not everything can be sold at any given time.  Depending on the price of the unit, try major incentives like seller paying condo dues for a few years or just keep lowering the price.      

April 20, 2007 6:47 PM
Ole Knudsen
Member Since '03

Ole Knudsen said:

Try a "Dutch Auction" - tell people you are reducing the price by $500 every Thursday until it sells!  ;)

April 20, 2007 7:02 PM
Allison Fisher
Member Since '06

Allison Fisher said:

Or have the Seller agree to pay his/her side of the closing costs.  

And remember to ask the buyers (that seem interested) would they like to make an offer today?  PAUSE  If not, what is preventing or stopping them from doing so?  Keep asking questions.  Get them to ask questions, even object to anything...just get talking.  Best of Good Luck to ya!

April 20, 2007 7:24 PM
Todd Clark
Member Since '06

Todd Clark said:

Lower the price and offer owner financing. The seller will make up the difference in the price in 3 months and you will have buyers calling you till you don't want to answer the phone anymore.

April 20, 2007 9:23 PM
MaryAnn Morrar
Member Since '04

MaryAnn Morrar said:

How about the seller buying down the interest rate for the buyer?  Offer great financing

April 20, 2007 9:26 PM
Carmen and Jeff Bills
Member Since '07

Carmen and Jeff Bills said:

I think Todd has the magic key here if that is an option.

April 21, 2007 8:07 AM
Brian Kennedy
Member Since '07

Brian Kennedy said:

Thanks for the great feedback!

I like your idea Todd but unfortunately the seller is unable to offer seller financing. We tried to convince him that was a great option but he simply can't do it.

Also, he is prepared to take a loss but his situation prevents him from being able to put up any money more than his side of closing costs - so that's out.

I forgot to mention that the building has 509 units. The 20+ 1 BR's up for sale represent 85% of all the property in the building up for sale.

About mid-point we shifted our marketing to the investor crowd. Again, nothing.

I love the idea about the Dutch Auction. Maybe we will try that! My only concern is that everyone will keep waiting until the price goes to entry E-Bay level before we see any activity.

April 21, 2007 1:53 PM

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Brian Kennedy
American Invsco Realty

Brian Kennedy
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