Have You Ever Taken A House Out On A “Test Drive”?
January 5, 2008
It seems that the real estate pasture is becoming a bit populated with purple cows. Innovative and creative people are realizing that the old “buggywhippers” will soon be a part of the past.
However, many, many buggywhippers are still not getting it! Not only are they not getting it, but they are being showed up by people OUTSIDE the real estate industry.
HGTV is launching a new show Tuesday, “Sleep On It,” which gives buyers a chance to spend 24 hours in a house they’re thinking of buying. Prospective buyers cook dinner for friends, stroll through the neighborhood, take a shower and hear how loud or quiet the neighborhood is.
What a fantastic idea. This is “out of the box” thinking. This is the kind of idea and promotion that would really catch a buyer’s attention.
In an article in the Hartford Courant the show’s producers said they were inspired by a story in the New York Times two years ago, but apparently the concept is confined to a small, elite segment of the market. It’s anyone’s guess whether this phenomenon will trickle below the million-dollar price range.
In the December 2005 story, the Times reported that sellers of luxury homes in New York and Los Angeles were allowing qualified buyers to spend a night or a weekend in condos so they could sample the lifestyle afforded those who bought in a particular building — the health club, the restaurant, the spa and other amenities.
The article grabbed the attention of Michael McInerney, senior series producer. “I thought, ‘This should be done for all homes.’ I pitched HGTV with the idea of doing that show.”
The staff at Edelman Productions, the show’s producer, did some research and found a few examples of developments where potential buyers were offered a chance to “test-rest” a home. (A Chicago lawyer stayed in a larger condo on a different side of the building she already lived in to determine whether she could live and work with the sound of the elevated “L” train. She couldn’t.)
None of several Connecticut and Massachusetts agents interviewed had heard of the marketing tactic. Nor had most of about 20 agents who wrote in on ActiveRain.com, a real estate blog, discussing the concept.
What??? none??? zippo? This story goes national, gets on Activerain, and nothing? What do you mean “discussing the concept”? Why were’nt each of those agents on Active rain with a listing out the door, off the blog and hitting the streets promoting some version of this “Test Drive” promotional idea?
Answer…the same reason they are not doing a raffle like Cynthia Moler. The same reason they are not successfully managing and selling REO properties like Barbara Newcomb.
They don’t know how, don’t want to take the time to learn, do not want to make the personal investment to do so and are content with being buggywhippers. Either that or they can’t get the time away from their shift at Red Lobster.
I love this idea. It is wildly innovative and so easy to implement.
Now you want the absolute kicker in all of this… nearly 62% of those QUALIFIED buyers that stayed the night and test drove the house MADE OFFERS!!!
The show’s producers say they’re on the cusp of a new idea. “I think this thing is going to hit the air and everybody is going to want to sleep in homes that they are buying. This is going to cause quite a controversy,” said Steve Edelman, the show’s executive producer. “And yet, [of] the people who participated in this, out of 13, eight of them decided to write an offer.”
Wow!!! So with all of this national exposure, with 62% of those staying in the home for a test drive making offers, this seems like an idea that might have some legs right? You know professional agents would be behind this enmasse like a new marketing idea has simply dropped out of the sky that could convert 62% of lookers into buyers right?
I mean the MLS sign and funny business card would be a thing of a past right? Think again..these are buggywhippers we’re talking about!
“I think it’s a good idea for buyers, but I don’t think it’s a good idea for sellers,” said Cohn, a real estate agent with Frank Howard Allen in Marin County, Calif.
She doubts the idea will take off the way other trends have, starting in California. “The only place I’ve seen it happen is on the show.”
St. Petersburg, Fla., real estate agent Sharon Simms went even further. Would she recommend her sellers offer potential buyers their house for a night? Would she dare risk being a purple cow….”Heck no. In our area of Florida, we have primarily older homes. You’re going to see all the creaks and wrinkles.”
And worse yet…she is not alone in her thinking. Real estate agents from several states who responded to Simms’ blog query about the concept were nearly unanimous that they wouldn’t recommend sleepovers.
There you have it folks. I can’t make this stuff up.
You will not succeed in 2008 and beyond with this kind of mentality. Playing it safe will bury you. Waiting until everyone else is using a strategy or technique before you try something might make sense in going to a restaurant or movie but does not work in business marketing.
So the question remains…is it a slow market because there are no buyers or is it slow because those “professionals” charged with supporting this industry are not doing their jobs? I opt for the latter as the reason.
The only redeeming thing I can take from this is that Darwinism seems to be taking hold of the real estate agent herd and that by attrition, only the strong will survive.
The idea has some merit, and I think in many situations would be great. I wouldn’t hesitate to mention it to my sellers. But, I think there would be some resistance…
Some people just don’t want to go through the “hassle” of having strangers in their home. Valuables and private data would need to be protected. Of course, it will only work with furnished homes.
Finally, one would have to ensure that the “buyers” were more than qualified. With the current financing situation we are seeing pre-qualified buyers that can’t get a loan from the lender that qualified them because programs changed.
Personally, I think that with a few safeguards in place, it could be a great program. I would be willing to eat the cost of a before and after maid-service, but might have a cost to the buyer (waived with offer or some other mechanism).
I might just have to blog it out and see what sort of reaction I get…