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Promotions, incentives good for buyers in a local property market
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| H&N photos by Todd E. Swenson RIGHT: Frank Goodson shows where the Paradise Hills five-acre estates are on a map of Upper Klamath Lake and its surroundings. |
July 22, 2007
The number of Klamath County homes and property on the market is outpacing the number of buyers, leading some in the business to offer lowered prices or expensive new toys in hopes of landing a sale.
“Whenever there’s a tight market, builders offer incentives,” said Bob Daggett, a real estate agent with Coldwell Banker.
“It’s definitely happening all over,” said Jed Etters, owner and principal broker with John L. Scott Realty in Klamath Falls.
He visited condos in Bend that were offering thousands of dollars in gift certificates to buyers. He’s seen offers that include closing costs or special home entertainment or outdoor packages.
“I think that we have high inventory right now, and they’re just trying to offer little gimmicks,” Etters said, adding that the gimmicks may get people to look, but it doesn’t mean they’ll buy.
If they come, they will buy
Frank Goodson believes if people see the five-acre lots he’s selling, they will want to buy the property for their future 1,700-square-foot or larger homes.
But he’s had a hard time getting potential customers to the Paradise Hills lots north of Klamath Falls.
So the developer is trying something new. He will give a free Polaris snowmobile or ATV to anyone who purchases property between now and Aug. 31.
Since offering the deal, he sold a property and has two others in escrow, he said.
But other area developers say they don’t think those type of incentives help.
“It’s not that we’re against it,” said Kendal Daiger, director of marketing for Running Y real estate. But, he said, the resort has no plans for such a promotion.
But Goodson thinks it might entice people to see what he has to offer.
“If we don’t get them here, we might lose them to somewhere else,” he said. “No one else has five-acre lots, no one else has the view,” Goodson said.
The development sold about 15 lots last year and 23 the year before, he said. The goal is to sell another 23 this year.
“Last year and the year before, we wouldn’t even have thought about doing a promotion,” he said.
Land-only lots
The lots in Paradise Hills, which include land only, run between $99,000 and $250,000, depending on the site and view of Mount Shasta or Upper Klamath Lake. Homes already built on the site are valued at more than $1 million.
In total, 56 parcels are sold, 50 are for sale and another 40 will be before the development is built-out.
“Lowering prices doesn’t do it,” Goodson said.
Though Paradise Hills will lose $8,000 for each Polaris, he said, it will still profit from each sale.
Loads of lots
There are several residential developments with lots for sale in and around Klamath Falls.
“For us, the pace is steady,” Daiger said.
“We’re definitely open into looking into things as markets change,” she added, leaving the door open for a possible promotion similar to Goodson’s in the future.
Running Y real estate is distinguished by the amount of open space, its location and the value of the lots, Daiger said.
Other developments, such as the Southview being developed by Greg Bessert, are set apart by their prices.
Homes in his development off of Highway 140 west of town are less expensive than properties at Running Y and in Paradise Hills.
“We target affordable houses,” Bessert said. The lowest priced home he offers is about $145,000.
He’s seen the promotions offered by other higher-end developments in and around Portland, but doesn’t think he needs to make a similar offer, he said.
“We haven’t really seen a drop-off in traffic or sales,” Bessert said.
Daggett said the best thing to do is simply lower prices to make the property attractive to buyers, and doing so will bring the market to where it should be.
_ By Megan Doyle
The number of Klamath County homes and property on the market is outpacing the number of buyers, leading some in the business to offer lowered prices or expensive new toys in hopes of landing a sale.
“Whenever there’s a tight market, builders offer incentives,” said Bob Daggett, a real estate agent with Coldwell Banker.
“It’s definitely happening all over,” said Jed Etters, owner and principal broker with John L. Scott Realty in Klamath Falls.
He visited condos in Bend that were offering thousands of dollars in gift certificates to buyers. He’s seen offers that include closing costs or special home entertainment or outdoor packages.
“I think that we have high inventory right now, and they’re just trying to offer little gimmicks,” Etters said, adding that the gimmicks may get people to look, but it doesn’t mean they’ll buy.
If they come, they will buy
Frank Goodson believes if people see the five-acre lots he’s selling, they will want to buy the property for their future 1,700-square-foot or larger homes.
But he’s had a hard time getting potential customers to the Paradise Hills lots north of Klamath Falls.
So the developer is trying something new. He will give a free Polaris snowmobile or ATV to anyone who purchases property between now and Aug. 31.
Since offering the deal, he sold a property and has two others in escrow, he said.
But other area developers say they don’t think those type of incentives help.
“It’s not that we’re against it,” said Kendal Daiger, director of marketing for Running Y real estate. But, he said, the resort has no plans for such a promotion.
But Goodson thinks it might entice people to see what he has to offer.
“If we don’t get them here, we might lose them to somewhere else,” he said. “No one else has five-acre lots, no one else has the view,” Goodson said.
The development sold about 15 lots last year and 23 the year before, he said. The goal is to sell another 23 this year.
“Last year and the year before, we wouldn’t even have thought about doing a promotion,” he said.
Land-only lots
The lots in Paradise Hills, which include land only, run between $99,000 and $250,000, depending on the site and view of Mount Shasta or Upper Klamath Lake. Homes already built on the site are valued at more than $1 million.
In total, 56 parcels are sold, 50 are for sale and another 40 will be before the development is built-out.
“Lowering prices doesn’t do it,” Goodson said.
Though Paradise Hills will lose $8,000 for each Polaris, he said, it will still profit from each sale.
Loads of lots
There are several residential developments with lots for sale in and around Klamath Falls.
“For us, the pace is steady,” Daiger said.
“We’re definitely open into looking into things as markets change,” she added, leaving the door open for a possible promotion similar to Goodson’s in the future.
Running Y real estate is distinguished by the amount of open space, its location and the value of the lots, Daiger said.
Other developments, such as the Southview being developed by Greg Bessert, are set apart by their prices.
Homes in his development off of Highway 140 west of town are less expensive than properties at Running Y and in Paradise Hills.
“We target affordable houses,” Bessert said. The lowest priced home he offers is about $145,000.
He’s seen the promotions offered by other higher-end developments in and around Portland, but doesn’t think he needs to make a similar offer, he said.
“We haven’t really seen a drop-off in traffic or sales,” Bessert said.
Daggett said the best thing to do is simply lower prices to make the property attractive to buyers, and doing so will bring the market to where it should be.
_ By Megan Doyle
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