As home sales slow and panic gradually sets in across the region, many real estate firms, developers and even individual agents are once again offering incentives to lure potential buyers to their properties.
Agents are being offered everything from higher commissions and elaborate lunches to pre-closing bonuses and raffles for gift certificates by nervous sellers anxious to move their homes.
“For years now we haven’t seen much in the way of food and now there are more elaborate luncheons available,” said Christopher Ritzert, a Coldwell Banker agent.
McWilliams Ballard, a sales and marketing firm that handles multiple condo properties in the Washington region, is one of many firms that has been hosting luncheons for agents in order to push a property.
The practice of holding luncheons, once standard, had waned said Steve Etminani, a principal for the District-based RCP Development Company, which built 1010 Mass, but courting agents is necessary again.
“Two years ago, we sold everything overnight, so we didn’t have to talk to anyone,” Etminani said.
The firm is offering agents half of their commission prior to closing. Delivery on the property is scheduled for summer 2007 and before the condo market started to cool, agents typically had to wait for closing to collect.
But offering up-front commissions, as well as raising commissions, is becoming standard practice again, said Holly Worthington, president of the Greater Capital Area Association of Realtors. Commissions were hovering around 2.5 percent, she said, and now they’re starting to rise back toward the standard 3 percent.
Agents themselves are also competing with minor incentives to drive traffic.
Carol McEwan, a Weichert Realtor, held a drawing last Tuesday at her broker’s open house for a $100 American Express gift certificate.
“Typically, if I have a broker’s open house, I either feed people lunch or offer some sort of drawing,” she said. “But the ante is being upped on what’s being offered. At one time a $50 gift certificate was considered generous. Then it was $100, and now some agents are giving $200. … Before agents weren’t even having [to] bother to do open houses.”
More than a home
» Developers are hosting “parties” for potential home buyers that come with multiple incentives.
» On June 1, Morgan Condos in Bethesda is holding a Summer Lights pool party. Incentives include no money down, no closing costs, up to $1,000 in gift certificates and a weekend for two in the Bahamas.
» On June 10, Van Metre is hosting an Island Festival at several of its properties in the Washington region. Incentives include 3.875 percent financing, a raffle for a trip to Bermuda and door prizes.
