Friday, May 11, 2007

Unclear on the Concept

by Tanta on 5/11/2007 09:52:00 AM

From WSJ Online via Yahoo!, we meditate on the economics of the "sales inducement."

After sitting on the market from June to December 2006, the Chungs' 1,200-square-foot Cambridge, Mass. townhouse condominium sold for $70,000 less than the asking price. "The number of condos in our price point was at some record high," Mrs. Chung says.

To attract a buyer, their real-estate agent suggested purchasing a flat-screen TV and including it in the price of the house. When the home finally sold, the buyer didn't want the TV.