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Expo unintentionally defines the state of the real estate market
By James Thorner
St. Petersburg Times
Published: Jul 24, 2009

There's something intriguing about hundreds of Realtors lining up for a chance to snag handfuls of air-blown dollar bills in a money booth manned by a Tampa Bay builder shaking a maraca.

On the one hand you could conclude that Realtors, knocked about like nine pins in the current economy, were grateful for the cash.

On the other hand you have to admire the chutzpah of more than 1,000 builders and Realtors converging on the club level of Raymond James Stadium on Thursday morning for the 2009 Realtor/Builder Expo.

Three years into the housing debacle, Realtors jammed kiosks advertising the latest block-and-stucco offerings from a building industry whose once-meaty sales are a carcass of their former selves. Tampa Bay area housing starts haven't been this low in about a half-century.

Having winnowed their sales and marketing staffs to save cash, builders are keenly aware they need real estate agents to steer customers to their subdivisions. And what better way to earn Realtors' gratitude - and unintentionally define the state of the economy - than offering agents cash and prizes through games of chance.

Inland Homes and Beazer Homes set up the aforementioned money booths. Pulte Homes ran a casino slot machine, Taylor Morrison Homes a roulette wheel, Parkview Homes a blackjack table.

Adams Homes went the church carnival route and spun a wheel of fortune. Lennar Homes, aside from handing out "Lennar Loves Realtors" black foam rubber stress balls, hosted a $1,000 raffle.

K. Hovanian Homes gave away free iPods and ice cream in glow-in-the-dark dishes.

It's a good thing they distributed freebies, because builders have largely discontinued the practice of dispensing cash bonuses of up to $10,000 for each paying customer, common in the early stages of the housing slump in 2007.

As Ben Walters, president of Inland Homes, explained it, the bonuses simply didn't deliver sales. In fact, the $8,000 to $10,000 handed to Realtors found its way into the price of the homes.

The expo sponsored Realtor self-help seminars in a lounge overlooking the red seat and green turf bowl of Raymond James. Overheard at one seminar: "How are we going to inspire before we expire?"

This year's expo definitely toned down the glitz. Minimuffins and danish replaced past years' bacon and eggs. Gone were the giant balloon arches laced with bank notes and beach displays using trucked-in sand.

Maracas, ice cream, toys, nibbles of free brownies: The atmosphere was almost that of a kiddy party. All the expo needed was builders twisting balloon animals to the delight of Realtors.

Wait a minute - they had those, too.



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