Social Real Estate: Is Groupon a Viable Marketing Solution

 

I have been toying with the idea of using Groupon for a while. Most agents’ opinions were that Groupon could not be used successfully to get more customers in the world of Real Estate. They complained and belly ached about the fact that they “don't make enough money off deals as it is and now we're going to confirm what the public thinks that we make too much money by offering discounts?” The naysayers can put it to rest now. I always knew there was a way to make Groupon work for Real Estate I just hadn't put my finger on it yet. Well, the wait is over! Dream Town Realty in Chicago, IL launched the first official real estate specific Groupon campaign in April and man did it go over well! They weren't exactly original since deals like this have been offered on http://housetipper.com/ since its launch, but who needs original, we're looking for results!

I don't really want to get into the specifics about what Dream Town offered but rather their potential for income from the offer. If you want to see their offer go here: http://www.groupon.com/deals/dream-town-realty. After putting the offer out for five days they had over 200 people buy it for $25 a pop. If they were featured, Groupon will take a cut of the $25, but the gross income just from the campaign was almost $5500 dollars! Now let's talk real estate. They had about 220 people buy the offer and their contract must be $150,000 or higher to use the coupon. Let's even be conservative and say that out of all the closings from this campaign the average is $175,000 at 3% commission and that 20 people never redeem the offer. This still comes out to be over $1,000,000 in commissions in one year! Those are staggering numbers!

Let's be even more conservative. Let's say that the average contract was $150,000 at 2.5% commission and that only 100 people, less than 50%, redeem their coupon and the realtor pays the $1000 dollars cash straight out of their commission. They will still make $275,000 dollars in commission and that is being way over conservative. We won’t even get into the fact that they will likely resale their home with you if you do your job as an agent... $$$

So after all that, is Groupon a viable real estate marketing solution? Let's see... they have made a connection with your company as being tech savvy and as part of their social network, they have a vested monetary interest in using your company, and they have likely suggested your company to their friends. What do you think? Of course it is a viable option to use when seeking to gain a more loyal and satisfied clientele. The main question is not "if" you are going to use Groupon but "how"?

Distressed Properties: A Growing Percentage of Overall Sales (Special Offer)

As we have reported since the beginning of this year, foreclosures are continuing to grow. Not only are banks hiring more law firms, Freddie Mac has increased its number of firms in Florida from 4 to 14, but the number of foreclosures being sold has sky rocketed bringing the overall market value of homes down. Just this Wednesday, we heard from an officer over the southeastern region of Bank of America’s foreclosures that our area was going to see a flood of REOs released for sale in the next two to three months. Most likely we will see a spike of foreclosures in the market around third quarter of this year and continuing on into 2013. This is good news for people who are already in the REO business and have established relationships with asset managers, but for those still outside the REO world this is not good news at all. 

The foreclosure "crisis" will only serve to make traditional homes sales that much harder in the coming months and years. It is essential for brokerages and agents alike to begin to supplement their traditional sales with distressed property sales, including short sales which are becoming easier and easier to close. Those agents who think they will "make it" without getting involved with distressed property sales are fooling themselves. Here are some reasons why you need to get involved:

1. You might "make it" but you won't "make IT"  

What is the IT? IT is money baby. You may fight your way tooth and nail through this wave of foreclosures and "make it" out the other end tired, burnt out, and ready to quit, but it doesn't have to be that way. You could procure some REO accounts and really "make IT" so that when this crisis over you're sittin' prettier than anyone else in your area. Bottom line: There is a lot of money to be made.

2. The faster we sell them, the faster the "good ole' days" return

Until we get rid of these foreclosures the market will not return to its normal ebb and flow. Foreclosures are dramatically decreasing the overall market value of homes. So the logic follows that the more agents we have selling REOs the faster we will get rid of them and usher in the days we all long to relive.

3. We will teach you how to do it! 

If you want to get into the REO business and get your piece of the pie here is a way for you to start getting in on the action. To find out more information visit: www.foreclosurefridays.org. Foreclosure Fridays is way for you to learn what it takes to the get REO accounts, manage REO listings, work with asset managers, and continue to grow your REO Team. Enter the code: NFI FREE for a free month long trial! You won't regret it!