By Alan Burke
What's next for real estate, "Buy one house — get a second one free"? Or will it be a going-out-of-business sale? "Every split level must be sold!"
The salesmanship hasn't gotten to that level yet, but some real estate agents on the North Shore are using many of the same techniques that sell cars, furniture and plasma TVs to get balky customers into the housing market. Such lengths are often a sign of tough economic times touching the real estate industry.
At Coldwell Banker — if you act fast — you can get 10 percent off your next dream home. And that's no joke. The offer is part of the real estate chain's national promotion, said manager Katharine Pickering in the Beverly office.
"We've never had a sale event such as this," she said. "It's just a question of bringing attention to the property." It started on Oct. 10 and was scheduled to end on Oct. 20. But Pickering expects that many of the sellers will retain the lower price.
Not all of the 15 "sale" homes dropped the price by 10 percent. Some could only be coaxed to make a 5 percent reduction. Some dropped it even further than 10 percent.
It is increasingly the agent's task, Pickering said, to "educate" sellers. In other words, after more than a decade of steadily rising home prices, they must be convinced that the world has changed and what's gone up and up and up has now come down.
Coldwell real estate agent Philio Cushing found it easy to persuade clients Tracey and Steven Davidow, even though their stunning Tudor home on Hamilton's bucolic Cutler Road took a major hit, the price dropped from $775,000 to $685,000.
"It's always good to be realistic," Tracey Davidow says, pointing to the interiors inspired by William Morris (the 19th-century British craftsman). "We had an open house, and we had a big turnout."
In fact, the asking price represents a loss from the family's original purchase price of $795,000 in 2004. Yet, as a businesswoman herself, and one whose husband deals in investments, Davidow takes a pragmatic approach.
She points to the loss of revenue that can result when a sale is delayed by unrealistic expectations. Further, she hopes to do well on the purchase of a new home.
"This is a good time to buy," she said with a smile.
With two boys, ages 3 and 4, Davidow is hoping to move to Manchester-by-the-Sea, near her new business, Green Egg, which will start retailing children's clothes on Nov. 1.
Of all the homeowners who agreed to be part of the 10 percent off promotion, one has a home under agreement. Pickering said Coldwell is the agent for about 1,400 homes in central New England, with 47 going under agreement during the sale.
'Odd tactic'
Not everyone agrees, however, that these techniques are necessary. "That's an odd tactic," said Ron LeBlanc, manager of Century 21 in Peabody. "Ten percent off? I don't know anybody that uses that kind of tactic."
Century 21 has two "open house" promotions each year, including October. LeBlanc is increasingly optimistic without exotic marketing ploys. "I see things turning around. ... We're going to do better this year than last year."
LeBlanc sees real estate sales crashing in Lynn, holding steady in Peabody and actually showing growth in Danvers.
Keith Lewis, manager at Vernon A. Martin in Danvers, argues that different people can have different experiences in the same place.
"Prices are down," he said. "And the number of sales are down. ... We could be doing better."
Even so, he's not impressed with the Coldwell Banker 10 percent off sale. "This is the first I've heard of this. It's not something we would do."
He warns that knocking 10 percent off a price is significant only if the price was a fair one to begin with. "If it's 20 percent off an overpriced house, it's no value."
The marketing in his office, Lewis said, involves making better offers to individual buyers. "It's a buyer's market."
He laughs off the usefulness of enticements. "We did try giving away free ice cream, but it melted before they got here."
