A Groupon for Buying a Home? Really?!
Should real estate firms offer discounts on sites like Groupon? Chicago’s Dream Town Realty thought it was a good idea. They offered a $1000 rebate at closing for $25 on Groupon recently and as you might imagine, they sold pretty quickly (see the story here). After all, who wouldn’t want to trade $25 for $1000?
I like Groupon. I use it to buy movie tickets, ice cream, discounts at the GAP, etcetera. However, I would never use a Groupon to buy a car, hire an attorney, acquire health insurance, or purchase a home. To me there are some things that are important enough to pay full price for to ensure that they are done right.
I mean imagine being wheeled into an operating room, receiving anesthesia, and then fumbling through your gown in a mind-altered haze while incoherently muttering ” But I have a coupon!!!”.
Now, that’s not to say that I don’t think there should be discount brokerages in the real estate. There are many of them, they have consistant business models and they serve clients that are looking for a limited service relationship rather than a full service relationship. The Dream Town Realty Groupon scenario is different in that it isn’t a business model, it’s a plea for business. It smells a little of desperation. As Brian Boreo of 1000Watt Consulting put it on their blog, “…remember for a moment that you are selling homes. Not egg rolls. Not manicures.”
What’s next, Townhome Twofer Tuesdays?! Buy one condo, get the second one 1/2 off when you bring 25 Campbell’s Soup labels into escrow?!
I think it’s a bad idea.
Ooh – I forgot to mention… come into my office, mention this blog and I’ll take 1% off of my commission on the eighth transaction you do with me. Hurry! This offer won’t last long!!