Real Estate Groupon?

Sales Meeting August 15, 2011

Group Coupons• Popular for restaurants and spa

treatments• Until recently, no one had

made the link between real estate and collective discounts.

• A group deal doesn't mean you must buy a house with a bunch of strangers.

• It just means that a real-estate agent will give you a bargain once a certain number of people have bought the same coupon.

• Deals from real-estate agents and brokerages include:– Commission discounts

or rebates. – Cash gifts at settlement. – Gift cards to home

stores.

COUPON! GREAT DEAL!

How It Works

• A minimum number of customers must buy the deal• Deals are offered for 3-7 days – Not impulse buys– Gives customers time to see the deal, make an inquiry with

the agent & decide if they want to purchase• Great way to gain exposure, reach out to potential new

clients • Real-estate coupons can be a valuable bonus as long as

customers understand the details• Group-coupon buyers must work with the agent or

brokerage that offers the deal

HouseTipper.com• Real-estate agents don't pay

anything, HouseTipper gets paid when the consumer buys a deal

• There's a preapproved commission that goes to the merchant and fluctuates according to the deal

• HouseTipper will refund the cost of the coupon if:– The customer doesn't buy a

house – They don't like the agent and

want to work with someone else

Example of Success!

• Prospective homebuyers paid $50 for the coupon and will get $2,500 in cash at settlement as long as they close within one year of the coupon purchase date and buy a home for $350,000 or more.

Recently offered deal through HouseTipper.com; Paul Gorney, real-estate agent with

Prudential Rubloff in Chicago.

Example of Success!

• “I've sold at least seven of these, which is a great way to meet new clients. I really encourage everyone to call an agent before buying one of these, though, because you want to make sure are choosing someone with whom you can work.”

Paul Gorney, real-estate agent with Prudential Rubloff in Chicago.

Example of Success!

• Dream Town Realty in Chicago offered a deal through Groupon in April for $25, which would give homebuyers $1,000 back at the closing, provided they bought a home by the one-year deadline for a minimum of $150,000. In less than one day, more than 50 people bought that coupon.

Example of Success!

• Hounshell Real Estate in Washington, D.C., offered a group coupon through The Capitol Deal, a website owned by The Washington Post. The Hounshell deal had cost $50 and offered up to $6,000 off commission for buyers or sellers. It is refundable if a home is not sold or purchased within one year.

Example of Success!

• We have a sliding scale for the commission discount according to the sale price, – From $1,500 for a home between $200,000 and $400,000 – Up to $6,000 for homes $800,000 and above

• We wanted to make sure the deal is worth it for customers and also (add incentives on) the higher end of the market

Greg Tindale, a real-estate agent, Hounshell Real Estate in Washington, D.C.

Etc.

• Real-estate agents in some states are not allowed to give commission rebates

• Important for consumers to read the fine print and call the agent before purchasing a coupon to make sure it will work for them

• Most people don't think to ask for a cash gift or to negotiate the commission when they are buying a home, so this is essentially doing the negotiating for them

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