For those financially poised to become a homeowner, now is the time to buy. Mortgage rates are at historic lows and home inventory is plentiful. Plus, homebuyers are slashing prices on their properties and even offering homebuyers free gifts with purchase.
"Free gift with purchase" has long been used as a promotional strategy as a way to tip the scales. Retailers and credit card companies have long been using the incentive to flush out their customer base, and now the strategy is being used as a way for desperate homeowners to get a head and move their properties quickly.
Buy Home, Get Free Mercedes
If you consider Chicago your kind of town, then a $599,000 Homer Glen home may be especially tempting. The house features 5 bedrooms, 3.5 bathrooms, a three-car garage and comes with a free cherry-red Mercedes sports car as part of the deal.
Local real estate agent Audrey Johnson developed the idea of including the luxury vehicle as a way to make her listing stand out from the crowd in the competitive Homer Glen real estate market. According to a report on SuburbanChicagoNews.com, the house was listed with another agent for 6 months and garnered very little interest. Since the owners of the property are moving back to India and planned on selling the car anyway, the listing price was dropped and the Mercedes is being used as a successful real estate marketing tool.
Currently the area has nearly 80 homes for sale in the area with price tags ranging from $400,000 to $700,000 and requiring a jumbo mortgage. Although those price tags represent huge discounts on mansion-like properties, according to Johnson higher priced homes are not moving as quickly and more consumers are opting for homes priced below $250,000. Although Johnson claims this is not the first time she has used the free gift with purchase strategy, this is the first time she has used a Mercedes to sweeten the deal.
Buy a Home, Get a Free Cow
The key to any successful marketing campaign is to target your message specifically for your desired audience. That is why in Rajkot, India builders are offering consumers a complimentary cow as a way to promote their homes. According to Dhiru Ramani, realty firm in Rajkot, "Cows are given great importance in Hindu philosophy," and his marketing strategy has stimulated an 80 percent future occupancy for the complex (The Times of India).
Buy a Home Get a Free Gadget
In an exclusive interview with Mortgage Marvel real estate agent Tim Perry has said that home purchase gift incentives are growing increasingly popular, especially in the Los Angeles market. Perry, a real estate specialist for Prudential California Realty, has heard of TVs, computers, IPads and IPhones all being used as real estate promotional incentives. According to Perry, car give-aways were popular in the local market several years ago. However, the latest tech gadgets are being used to fuel the local 'buy a home, get a free gift' trend.
Although they can certainly make a real estate transaction seem more appealing, freebies and price should not be the only reasons for the purchase.
