If you are waking up to an e-mail from Groupon every morning, you are part of an ever-growing group looking to score a good deal anywhere they can. Do you want to pay $25 for $50 worth of food at that chi-chi French restaurant you’ve been meaning to try? Sixty percent off on teeth whitening? Private helicopter lessons for a quarter of the price?
“Sign me up” is exactly what Groupon’s 40 million e-mail subscribers are saying. And why wouldn’t they? After years of worrying about whether the economy and their bank accounts would ever recover, Americans are ready to treat themselves. Right?
Well, it seems they’re willing to splurge a little, but only if they can get a good deal. While some Americans aren’t living paycheck to paycheck anymore, they remember what it was like to stare at those double or single-digit bank balance numbers, waiting in anticipation for their next direct deposit. Groupon, the two-year-old Chicago-based company that could, has given Americans the freedom to buy without all of the guilt.
Groupon’s not the only discount website in the game. Other popular sites, including Living Social and Eversave, are helping bring more people into the discount-is-best economy. And whether these companies’ CEOs know it or not, they are influencing the way consumers view buying a home.
In fact, some might argue that the federal government’s idea of a homebuyer tax credit was inspired by this coupon culture. Who wouldn’t jump at the chance to shave $8,000 off their home’s purchase price?
Buying a discounted home through foreclosure or short sales can be like striking gold for this country’s consumers. Recent controversy surrounding foreclosures and robo-signing aside, the stock of these kinds of deeply discounted homes can only grow as foreclosure deeds and lis pendens mount.
And as that inventory grows, the big question becomes, will people be willing to pay (gulp) what a “non-discounted” home is actually worth? Ask anyone trying to sell a home, and in addition to seeing an eye roll, you’ll get a big fat “No.”
You see, consumers know that just like retailers and restaurateurs are desperate for their dollars, most homeowners will bend over backwards to sell their place. Sure, they may have sunk thousands of dollars worth of renovations into their home, but after two years on the market, some concessions have to be made.
And those in the market for a home sure seem content to wait for sellers to do just that. Not all homeowners have the luxury of turning down offers that don’t suit their needs, like Groupon just did with Google’s offer of nearly $6 billion to buy the company.
What’s a homeowner to do? Do they take the loss and be glad to finally be rid of the home? Or can they play it cool like Groupon and wait it out for that perfect buyer who will pay exactly what their home is worth?
Let’s talk numbers: In the two years that Groupon’s been around, the company has sold 25 million of their discount coupons. The IRS reported that more than half a million people took advantage of the homebuyer tax credits, claiming (or saving) $4.1 billion. Do we really think Americans are going to return to full-price fare now without putting up a fight?
The good news is, Groupon users – like homebuyers – are willing to spend their money, just not all of it. What those selling a home can learn from Groupon is that they have to present buyers with a deal they can’t refuse. Doing that doesn’t necessarily mean the seller has to lose money, merely revise their expectations.
Just ask Groupon, and the $1 billion in revenue they expect next year.





