Business Week: Customer Engagement

Earlier today I was listening to a Business Week podcast for the story titled “Where Housing Will Be in 2012.”

One of the things that stuck me was a question that raised concerning the future selling price of a home in New Jersey. Both writer and the editor took a stab at answering the question. [My guess is $475,000]

This question would be a good way to engage listeners and readers. Perhaps Business Week will use a free survey site to do just that. A site such as Survey Monkey or Predictify may work.

Data requested would include the following

• Price in dollars
• Name
• Email

Closest guess gets the winner in some sort of analysis Hall of Fame page on the Business Week website.

Each guess could include space for a 140 character reason for why that price was guessed. Twitter posting may also be included.

Would something like this drive discussion?

HOME IMPROVEMENT

Are Visa and MasterCard a good way to pay for home improvement and remodeling?

This sign was in front of a house in Grosse Pointe Shores, MI. It has a lake view. Probably a million dollar home. To see homes and prices in this neighborhood, go here and look for homes on Lake Shore.

Is this related to HELOC's [Home Equity Line of Credit] and how they are being frozen by lenders?

What are your thoughts?

HOUSE FOR SALE: TIGER TICKETS INCLUDED

REAL ESTATE FOR SALE

That probably doesn't shock you.

The key for any individual property in a soft market is...

• Get buyer attention
• Get them intrigued
• Get them excited
• Get them to consider
• Get them to schedule a viewing

It's hard to sell a house at a fair price if the buyer is unwilling to view the property. To buy sight unseen is to offer pennies on the dollar.

The Detroit Tigers have what many to believe to be a very competitive team this year.
This may achieve some level of differentiation versus the objectives listed above.
The seller wants potential buyers to consider something other than major price reductions.

Tiger Tickets are priced at $5 - $ 65. These are individual game ticket prices.
Lets assume the package offered is [2] $15 tickets for all 81 home games [3 games have already been played as of press time]
2 * $15 = $30 * 81 = $2,430.

This offer is probably about 1% of the asking price for this property. Potential buyers will probably say... Keep the tickets and drop the price 2,500 bucks.

• Gets more potential buyers interested and in the door
  
• Keeps price cuts smaller than they would be without the ticket offer
• Resulting in a higher selling price

What are you thoughts on this offer?

REAL ESTATE: AT BOTTOM?

OBSERVATION:
Real Estate seems to be at a bottom.

• Inventory is high
• Long Term 30 yr fixed mortgage rates are low and stable
  
• Buying season is starting soon [most (or is it more) sales occur in spring and summer]
• Sellers are figuring that it is better to reduce prices to market than to continue paying interest for many months [or years] waiting for a sale [at last years valuations].
• Existing homes sales are slowly increasing still falling. Business Week coverage.
  

OPINION/PREDICTIONS:

• The slowdown may be coming to an end as government stimulus checks are going out in about 5 weeks.
  
• As usual the stimulus will probably be late and the economy will already be in recovery.
• This is the bottom and the deals will not be this good for some time [if ever again].
  
• As this becomes the sentiment of buyers [and vultures] they will rush in to get the best locations and values.

The next few months will be interesting...


Any thoughts on housing, interest rates or the economy?