Coldwell Banker National Sales Event Bad For Home Sellers

I thought I'd heard it all - until I read about Coldwell Banker's national 10% off sales event that began earlier this month. In case you are out of the loop, here is the scoop:

“Despite the difficult headlines regarding our overall economy, the residential real estate market has been showing several positive signs over recent months that could be signaling a tipping point,” said Jim Gillespie, president and chief executive officer, Coldwell Banker Real Estate LLC. “Because of higher inventory, buyers have more homes to choose from and they can take advantage of near historically low interest rates and affordability levels that are the best they have been in years. The recent housing and economic recovery legislation also provides first-time homebuyers with the added incentive of a $7,500 tax credit.(1) “Yet our research and discussions with our brokers and sales associates shows that in many markets sellers remain reluctant to list their homes at the proper prices necessary to attract buyers,” continued Gillespie. “It’s our hope that the Coldwell Banker 10-Day Sales Event will move buyers off the sidelines and into the market. We are embarking on this initiative — which has never been done before on a national basis — because we believe it is critical for Coldwell Banker, as an industry leader, to help serve the needs of those individuals listing homes with a Coldwell Banker broker and to help move the U.S. real estate market in the right direction.” via PR MarketWatch.

This promotion is wrong on so many levels. By encouraging their agents to participate in the national event, they are really saying that their agents stink at being able to price properties right the first time. If the listing price they suggested to the seller when they got the listing was correct based on their vast market knowledge and superior marketing capabilities, why is it all wrong now?

Just who is benefiting by the 10% sale, anyway? It sure isn't the home seller. And what stake do the agents have in this scheme? Are they reducing their commissions to help stimulate sales? Of course not!

What happens after the 10-day blitz is over? Does the seller re-up the asking price? Will buyers go for the gimmick? I think l'd just wait until the 25% sale starts, or perhaps hold out for the FINAL MARKDOWN. One thing is for sure....you can't go up once the fire sale starts.

Come on now. When are we going to smarten up as sensible consumers and fire the people who helped create this housing mess to begin with. Save your money and sell "by owner".