Using WHole Town To Sell
Unfortunately there are no Nancy Chadwick's in my small town. I have never paid a realtor to sell a property and have an adversion to it (more so as I near completion of my state realtors course
I am planning on selling my primary residence and moving closer to the action (SLC) where I do business and plan to do so after my daughters graduation June 1, I would like to do so quickly an at retail.
I think I will run an ad on the radio and in the paper offering $3000 at closing to anyone (or any organization) that sends me a qualified buyer. That way I have 5-10,000 people interested in my property even if they don't want to buy it because it spells money to them. I get great exposure, marketing fees of +- 1% and some lucky individual gets money for nothing.
What do you think??[ Edited by Stockpro99 on Date 03/26/2004 ]
Stockpro99,
Some thoughts...
You may have already thought about these, but I would be careful about how you phrase your offer.
1. Obviously, your intent is to pay the $3,000 to the person or organization who brings the buyer not only with whom you sign a contract, but also who satisfactorily completes closing.
2. Suppose 5 people contact you with the name of the same buyer. You will probably want to have some sort of "prospect registration" so that once someone gives you the name of a particular buyer prospect, nobody else who gives you the name of the same person will be eligible for the referral fee.
3. Do you want to make your fee offer open-ended? In other words, wouldn't you want the buyer to have to sign and close with you within a specific timeframe in order to make the "referror" eligible to receive the $3K?
4. Suppose the buyer is not referred. The buyer sees your ad and buys your property. Then is the buyer himself/herself entitled to the $3K?
5. To be entitled to the $3K, does the referror have to do anything other than contact you with the name of the buyer prospect?
6. Suppose the referror is RE licensed. Would/should your offer be the same? In other words, same amount of fee, and also would you want the agent to not be involved in the transaction beyond introducing the buyer?
7. Even if you're not licensed when all this happens, you might still want to make some sort of disclosure to CYA if your state requires RE licensees to disclose their license status.
I wish I were in your town, for even if I couldn't help get your property sold, at least I'd get to meet you. Thanks.
[ Edited by NancyChadwick on Date 03/26/2004 ]
You might want to find out whether you get to be a guest of the state only, or if there is also a fine for paying an unlicensed member of the public for dealing in RE..
Hmm, interesting idea (and responses), I like it. Don't know if I'd pay so much up front though, $1000 or 1% would be a nice starter, tell your birddogs they'll get twice that much for the second deal. Make sure they bring you decent prospects or you'll waste your time on MLS listings the lazy dogs pass on to you. How about adding "birddogs wanted" to your "I buy houses" ad? A word to the efficient is sufficient. Hand out business cards that include "Referrals wanted, I'll pay you $1000!" to the lawyers (paralegals, secretaries), title people, whoever you come across. Could generate some calls, have a spiel for them as well as sellers. Be ready to pay it to self-referrals, too, tell em that right up front, make them think they're smart for thinking of your offer that way. Rebates work for car companies, why not for you?
I am glad that so many competen answers were generated. I have indeed thought through many of the issues that Nancy mentioned. I didn't think about the multiple names thing (good thought). I will have to give it some more thought. All I need is a buyer, I can handle the closing, get fincancing for them etc. if needed. In the past it is the title company that does all the closing work.
As for being the ward of the state, not an issue, I will check Oregon law but even in California it is a regulatory issue not a penal one and would involve at most a fine, especially for a first offense.
I picked $3000 out of the air as enough to motivate me were I in someone else's shoes.
I figure that on a 180K house that was cheap if it sells fast, and closing within 60 days is a must as I am in a hurry to get back to civilization and hate the long drives
Thanks for your advice!
Interesting. I must say there are some great ideas floating around this board. It is a priviledge to see some of your minds at work.