My office has a new subdivision listed called Rocky Point Riverfront Townhomes located just north of downtown Bend adjacent to the Deschutes River. We have 10 riverfront townhomes ranging from 2251 to 3112 square feet and prices starting at $899,000. We also have 6 terrace townhomes (not on the river and 2 of which have sold) with 2251 square feet for $449,000. They’re beautiful with natural stone, hardwood, and upscale appliances. I’ve been working in the model town home since the end of July. The model is open Saturday and Sunday from 1:00 – 4:00pm. The location is quite good but it’s hard to find. It’s at Revere Ave. and Harriman St. and this is not a drive-by location. Because it’s hard to find and it’s new, my weekend traffic is typically pretty slow. I usually consider my open house to be a success if I get a couple of groups to come through, say 4-5 people or so. This past Sunday, 20 people come through in 10 separate groups!
What made this weekend so good? I knew there was a chance friends and family would still be in town for the Christmas holiday and they might want to look at real estate while they were here. I talked to everyone that came through and that wasn’t the case. A few people said they live in the area and finally decided to stop by and see the inside. A few others had heard about Rocky Point through word of mouth, which is great, and others were just driving around and saw my open house sign. We just started running radio ads so I thought that would have something to do with it but only 1 couple that came through on Saturday came because they heard the radio ad. Hey, at least the ads reached someone! The last possible reason for the increased traffic could be (drum roll please) we recently had a MAJOR PRICE REDUCTION!!!
Could there actually be a correlation between price and interest? Several of the people that came through already knew what our prices were before I told them so there’s a good chance the price reduction helped. Perhaps they wouldn’t have come if we were still at the old prices. The trouble is, the price reduction is temporary. The developer wants to quickly sell a few then we’ll gradually start increasing prices because he is not making any money at the current pricing. Actually, he’s probably losing money. Unfortunately, I’m afraid we’re finally at the right price now. Buyers do not care whether the developer is making money off their sale or not. They don’t feel bad for the developer when they get an incredible deal, they feel smart and they feel like their research and patience finally paid off. Perhaps this is the correct pricing right now and our developer will have to accept that he might lose a little money early on but he’ll make it back later.
I received great feedback this weekend from the folks that came through, and I think the fact that there were constantly people milling around made everyone feel a sense of urgency. Extra interest is great but what we need are offers!
You can learn more about Rocky Point by following this link: http://total-property.com/properties/index.cfm?fuseaction=rockypoint