Groupon Tackles Chicago Real Estate: Housing Discount?

Groupon Tackles Chicago Real Estate:  Housing Discount?

While it's not a half-priced home, Chicago-based Dreamtown real estate has hopped on the Groupon bandwagon.  



dreamtown groupon.jpg

Screenshot of Groupon

Always striving to anticipate the next trend, Dreamtown is offering a $1000 "cash gift" at closing.  What does this mean and what's the catch?

Dreamtown has carved out a niche with the internet savvy market.  What started as an SEO (Search Engine Optimization) blitzkrieg has spawned into a strong presence in social media, real estate message boards, and print advertisements around the city.  Now they are taking on Groupon groupies.

The Fine Print

Expires in 1 year. Limit 1/household. Limit 1/transaction. By appt only. Not valid for past and current Dream Town clients and customers. Buyers must close on home and redeem by 4/9/12, sellers must list home with Dream Town by 4/9/12. Transaction minimum is $150,000. Not intended to solicit listings currently under contract with other real estate professionals. Not valid with other offers.

Is This A Smart Move?

As of 9am, 10 people have paid $25 for the opportunity and there are 4 days left to go.   By selling this Groupon, Dreamtown is getting good press and serious leads.  It will be interesting to see how popular this Groupon is. Depending on how much Dreamtown had to shell out for the offer, other companies may follow suit.  Do you think it is a savvy business move or another tired real estate gimmick?

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Tags: dreamtown, groupon

Comments

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  • It's brilliant of Dream Town. I just evaluated the economics of this deal and it's only good if you are looking at a transaction under $200K or so: http://www.chicagonow.com/blogs/chicago-real-estate-getting-real/2011/04/dream-towns-real-estate-groupon.html

  • And the saga continues....
    The Groupon discussion board has blown up with lots of discussion on the legality of this offer. The most recent comment (Giacomo) claims CAR is investigating. TheCondoist is on it to verify what is, or is not happening.
    Currently, 175 people have purchased the Groupon.

  • In reply to TheCondoist:

    What? There is no way this can be illegal.

  • In reply to TheCondoist:

    According to CAR, all questions are being directed to IDFPR (Illinois Dept. of Professional Regulation) and that as far as IDFPR goes, this Groupon conforms to license law

    I doubt we've seen the last of the ranting/questions but Dreamtown deserves some Kudos for braving the storm. Maybe just monitor the chatter a little bit more closely...

  • In reply to TheCondoist:

    "Short Sale" Sellers can't profit from a Short Sale. If they ahve a coupon and ask for the $1000 I smell a lawsuit. Lenders are strict often and won't allow kickbacks from Real Estate companies. In this case the "Buyer" will loose $25 since they can't be given a penny back or it would constitute fraud. There's no doubt the MLS is going to get involved as this is Pre Paying for a Rebate. I don't think this is allowed nationwide from my understanding regarding real estate. These are not the only issues with this offer but just a few that stand out.

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