REALTOR DANGLES MERCEDES, SNAGS BUYER – Detroit Free Press Newspaper March 31, 2006 by Suzette Hackney
A slow housing market can spur motivated sellers to throw in unique buyer incentives such as extended home warranties, interest rate point buybacks and decorating or lawn care maintenance allowances.
How about a Mercedes? Yes, that’s right. A luxurious Mercedes-Benz.
A 4,000 square foot lakefront home in Independence Township had languished on the market since last August until the Realtor sweetened the deal by throwing in her 1990 Mercedes 420 SEL to the buyer of the house.
Kimberlee Frank, the owner of Sell Fast Realty in Fenton, had planned to sell the Mercedes anyhow and convinced the homeowner to buy the car from her. Then the vehicle could go to the buyer with the sale of the home, or the buyer could buy the home at a discount of $6,000 – the amount the car is worth.
Frank said the four door white Benz is in mint condition, with 105,000 miles and full loaded. She said she used the care to entice prospective buyers to visit the home during open houses March 18 and 19. Though there was foot traffic last fall, the five bedroom house had been updated since that time, including new siding, windows and an apartment over the four car garage.
The owner of the home – it’s an estate property – was asking $424,900, a bargain considering it sits on 2.2 acres and on Whipple Lake, an all-sports lake. Five families went to see the home during the open house and mentioned seeing ads about the Mercedes, which was parked in the garage.
Frank’s idea should be celebrated as a creative inspiration, representatives of the Michigan Association of Realtors and the National Association of Realtors said, Not every Realtor needs to throw in a Mercedes to draw attention, but gift cards and fruit baskets aren’t doing the trick in this market.
“I haven’t heard of such marketing ploys like that since back in the early 1980’s when interest rates were 15% or more,” said Walter Molony, NAR spokesman. “In areas of the country where we have labor problems and a weakness in the economy, which leads to an oversupply of homes, that’s the type of environment where you would expect to see the extreme marketing.”
I find Frank’s approach to be an ingenious one. It’s a buyer’s market in metro Detroit. However, buyers want and expect more than just a nice house. There are nice houses everywhere. Updated features and financial incentives such as helping a buyer with closing costs or dramatic price reductions have become customary and boring. Buyers are demanding more. Something new. Something enticing. Something sparkly. Something like a Mercedes-Benz.
Apparently, the strategy worked. Just this Monday Frank sat at her desk with two purchase agreements from individuals who had visited the house and were qualified to buy the home.
By noon Tuesday, one of those agreements had been accepted and signed by the Seller. If something were to fall through, Frank said the other offer, which included the reduced priced instead of the car is solid and acceptable as well.
“I got two good offers and that’s hard these days in this market”, she said. “We used the car to stimulate some interest, and it worked out great”. Imagine that, it took a 16 year old car to get people interested in a beautiful, spacious home on a lake. Sellers take note.
