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Home sellers, Realtors try free classifieds on Web
Seeing the potential of ads on Internet
Saturday, November 10, 2007

Sean Madden's house on Trevanion Avenue in Swissvale is listed on Craigslist.org for $349,000.

Sean Madden has sold three houses without the help of a conventional Realtor. So it made perfect sense when he decided a few weeks ago to put his recently renovated Dutch Colonial in Swissvale on the market that he didn't call a full-service broker.

To get his house on the all-important West Penn Multi-List, Mr. Madden listed it with Continental Real Estate, a flat-rate brokerage, for a 2.5 percent commission rate. Then he took a few pictures, wrote a detailed description of all the work completed and posted it on Craigslist.org, a popular Internet community classifieds site.

"Fully restored 6-bedroom home," reads his ad from Oct. 26. "Everything was done new in 1999. New roof, insulation, HVAC, custom kitchen, first-floor laundry ... one of best street/neighborhoods in all of Pittsburgh." Price: $349,000.

"My theory on the market is that people buy the house they like when they find it, regardless of whether or not there's a Realtor," said Mr. Madden, vice president of academic affairs at California University of Pennsylvania,

And what better place to get the word out than in a free ad on a site that's used by more than 25 million people each month?

Sharon Turner is sure hoping he's right. Three weeks ago, she posted an ad on Craigslist for her neat-as-a-pin Cape Cod in Springdale. The ad includes an unusual confession for a home seller:

"OWNER ANXIOUS ...

"This is probably my last chance to sell this home. It has gone 'stale' sitting on the market so long -- almost a year. I just don't understand why."

In the ad, she concedes that the three-bedroom house needs some TLC. But, otherwise, it is in "absolutely livable" condition. It goes on to state that no reasonable offer will be refused. She is listing it for $89,900.

Unlike Mr. Madden, Ms. Turner used Craigslist as a last-ditch effort to drum up some excitement for her house. Yet both recognize that savvy -- and often younger -- potential buyers are increasingly turning to the Internet in their search for a new home.

Craigslist, which started in 1995 as a bulletin board of San Francisco events, is best known for its free job ads, "for sale" postings and discussion forums. But it has expanded over the years to include local classifieds and forums for 450 cities worldwide. The real estate for sale category, which was added in 2003, now accounts for 3.5 percent of all postings, or 1 million per month, says CEO Jim Buckmaster.

Pennsylvania ranks seventh in volume, after California, New York, Florida, Illinois, Washington and Oregon. Philadelphia has almost four times as many REFS ads as Pittsburgh.

Sellers love the site because ads are free, except in New York City, where brokered apartment listings cost $25. Since sellers write the ads and headlines themselves, they can differentiate their homes from the pack with more humor, greater detail and occasionally, brutal honesty. Ms. Turner's ad, for example, points out that her home needs new windows and an updated bath.

But seller beware: if you're under contract with a real estate company when you post the ad, or your buyer comes with their Realtor, you still pay their commission.

Given its popularity, Craigslist also appeals to Realtors, who view it as one more marketing tool in an increasingly competitive market.

Kathy Hall, an agent with Prudential Preferred Real Estate's North office, is among those who routinely put listings on the site. Yet the biggest source of leads still are traditional sites such as Realtor.com and Yahoo Real Estate.

Ads stay up for 45 days and can be updated or changed. If you're uncomfortable listing your e-mail address, Craigslist will make it anonymous and relay any replies. The only restriction is that sellers must refrain from stating a discriminatory preference in their posts. Otherwise, they can be fined more than $10,000 under the Federal Fair Housing Act, plus damages in court.

If a post on the community-moderated site receives enough negative flags, it is automatically removed.

In describing his 107-year-old home, Mr. Madden points out a great library study on the first floor, an art studio in the rear of the house and a "really cool rope swing" on a giant pin oak in the back yard. He also notes that the front porch is the "finest sitting area" in the tri-state and the neighborhood's tree-lined sidewalks are close to all amenities. He even lists the taxes: $5,700 per year.

The house, which made a brief appearance om Rick Seback's "It's in the Neighborhoods" documentary, is in Swissvale's part of the Regent Square neighborhood, which also includes parts of Pittsburgh and Wilkinsburg.

In the four weeks since he posted his ad, Mr. Madden has received about 15 calls, and six people have come and looked at the house. Four are serious, he says.

One couple looked at the house five times, but when they couldn't agree on a price, they moved on. As expected, he also got several calls from "very polite" brokers who asked to show the property.

Mr. Madden is so happy with the results that he's listed a second property on Craigslist, a ski cabin/trailer at Seven Springs priced at $27,900.

"It's unbridled capitalism," he proclaims with a grin.

Ms. Turner, who was turned on to the site by a friend four months ago, is equally pleased. While her first posting in June failed to attract much attention, her second ad last month is working. She has gotten six calls, including one from a couple in Florida who are relocating to the area. They're planning a trip north to see the property this week. Hopefully, she says, something will come of it.

"It's adorable and exactly what it looks like," she says. "A great starter house or perfect finishing house."

Gretchen McKay can be reached at gmckay@post-gazette.com or 412-263-1419.
First published on November 10, 2007 at 12:00 am
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