The Arizona Republic recently reported that Metro North Realty, a Phoenix based brokerage, opened an office inside the Peoria, Arizona Wal-Mart.
I like to think of myself as open minded. I like pushing the limits. But this one has me confused.
I wonder how any real estate company, poised on the edge of a bad market, tipping on the tightrope of trust, and trying to get top value for their sellers, could think that selling something — a home — priced in the hundreds of thousands of dollars inside a retail operation known for slashing vendors’ pricing models is a sound, prudent, idea.
According to Daniel McCarthy, Metro North’s Peoria office manager, he "expects the mega-retailer’s heavy foot traffic to translate into increased sales, giving the company an edge over other real-estate companies using traditional sales methods."
He "expects." No study. No numbers. No nothing. Just a hunch.
Given today’s market climate, shouldn’t real estate companies be doing more than grasping at straws such as this? Consider Wal-Mart’s rap in the minds of consumers. From blogs to documentaries. there is a world of negative energy around the company.
What do sellers think? Would they, you, want your half million dollar home on sale inside a low end brand box store, especially one that tends to cause disharmony in every community they open up in? Shouldn’t their long-standing history of disrupting local businesses and merchants be something a local real estate company considers before deciding to affiliate with?
So where do we go from here? How far are some in this business prepared to go to dilute their brand for the sake of The Next Deal? Will we start seeing real estate banner ads on cyberporn sites? Or how about licensing toll booth takers? They can take change and hand out business cards at the same time. Think of the traffic.
You know why ambulance chasers don’t affect the reverence people have for high priced, Park Ave attorneys? It’s because people understand the difference between them. Unfortunately, this is too often not the case in real estate. It’s getting harder and harder for the consumer to know, off the bat, the differences between a seasoned pro and the agent in aisle 5.
And I think that is a problem. For everyone. Including the consumer.
If it were me, I’d be polishing up my new facility at Neiman Marcus. Guess I’ll just have to see where this one goes.
- Davison
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I just don't unnerstan you, Marc.
I am doing quite well standing on the corner with my "Will Sell Your Home For Food" sign.
Phil
Exactly.
So I am guessing you have not driven the streets of Peoria??? I am not so sure they will not find their target demographic in a WalMart there.
Solomon Says the game of sales is won during prospecting and in a Wally World store, there are tons of folks who probably need to sell their homes. Lots of listings bring lots of buyers. It is the world of Real Estate and I am looking forward to watching it work too.
Of course, if a Paradise Valley Realtor chose that option, (Minimum 1 acre lots on expensive dirt) instead of Needless Markup, I would agree with you. Lets sit back and watch the game progress, eh?
Uhm, pass the popcorn, would you?
Never been to Peoria but considering we have a Wal-mart 10 miles from my home I can relate to what it might feel like as a seller knowing that my home, the one I was promised top dollar for by my agent, is now on sale in aisle 7.
Maybe I'm missing the point. Maybe I underestimate Wal-mart. But what I think is driving my issue with this is simply Wal-mart's credibility and sordid human relations history. It's just not a place I, as a local broker, would feel good about partnering with. I would be concerned about my brand and how I would manage the talk about town regarding my partnering with a retailer that displaces so many local businesses. After all we're talking about a real estate firm and the type of ties they seemingly have with a community as opposed to large conglomerate plastics manufacturer or bottom end clothing brand.
But I could be dead wrong. If they sell homes and sellers get their price and everyone is happy, I will be there to publish their success story.
Marc, Although my Progressive side agrees with you about t linking your brand with Walmart is to me like dragging it through the cow manure, there are plenty of people, I believe of many levels of affluence, that happily frequent the store.
My well off Republican sister in law, Many of my Realtor friends, seem to love the Wal Mart experience.
I do hope this does not go well, but I am not making bets.
Nice article.
I just can't see a full service brokerage working in a discount retail store that (like said above) displaces so many local businesses and drives down wages.
Maybe the smiley face will fly around the house when the seller drops the price…
Excellent article. I don't really think it is top of mind marketing, and I'm sure the space is not cheap. What's next? Maybe setting up a booth at the exit of the county jail? After all, these people are going to need some place to live, right? As Harry Truman said, "if you are going to go duck hunting, you need to go where the ducks are."
Maybe a kiosk at next years AVN Awards in Vegas
Sympathy for the devil aka WalMart: Real estate hawkers can be found in strip malls, right next to dollar stores and pizza joints. Some even set up kiosks at street fairs and carnivals. Sam's Land seems a step up…
So I am guessing you have not driven the streets of Peoria??? I am not so sure they will not find their target demographic in a WalMart there.
Solomon Says the game of sales is won during prospecting and in a Wally World store, there are tons of folks who probably need to sell their homes. Lots of listings bring lots of buyers. It is the world of Real Estate and I am looking forward to watching it work too.
Of course, if a Paradise Valley Realtor chose that option, (Minimum 1 acre lots on expensive dirt) instead of Needless Markup, I would agree with you. Lets sit back and watch the game progress, eh?
Uhm, pass the popcorn, would you?