Tuesday, October 21, 2008

Did Buyers Purchase Homes "On Sale"?

Coldwell Banker's 10-Day Fall Home Sale Event is now history. In order to participate, sellers whose homes were priced at $750,000 or under were asked to reduce their prices by 5%, while those tagged at $750,000 or more had to slash 10% from their asking price.

The interesting part of the promotion was that it modeled itself on department store sales by trying to sell houses like were linens marked down at Macy's, "for a limited time only." We don't see that approach too often, and I applaud Coldwell Banker for stepping out of the box to try something new.

It will be interesting to see how many buyers took advantage of this unprecedented opportunity, but in at least one case, the marketing strategy seems to have paid big dividends.

215 Monument Street in Concord, a 17-room mansion on 3.5 acres abutting the idyllic Estabrook Woods, was originally listed by Coldwell Banker in April, 2006 for the heady price of $5,250,000. By March of this year, the asking price had ebbed down to $3,975,000, without any takers. And by the time the owners decided to participate in the 10-Day Sale Event by reducing their price to $3,600,000, this stately home had been on the market for more than 900 days.
But then, voila!

Apparently the "limited time only" $3.6 million price tag was irresistible, because on Sunday, October 19th, the last day of the sale, this home was finally put "under agreement," signalling that a buyer had taken the bait. The property is currently assessed at more than $4.3 million, so it looks like the new owner got a great deal.

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