Marketing History

Marketing and Sales at Callawassie Island has stabilized after a state of flux ever since the developer (Callawassie Island Company, CIC) scaled back their marketing and withdrew from selling. Stability has gradually returned after the arrival of Coastal Real Estate Solutions at the Welcome Center in 2012.v In 2018, we almost reached the goal of 50 property sales, which we adopted as a long range strategic goal in 2012 as being representative of a thriving community.

The following is a brief overview of the history of marketing and sales.

Pre 1996: The developer controlled the Club and POA, the sales office, and the marketing of Callawassie Island.

1996-2001: CIPOA is transferred to property owners; the CIC continued to control/own the Club, marketing, and the sales office.

2001-05: The developer transfers the Club to its Members; CIMC is established. Property owners overwhelmingly approve a change to CIPOA Declaration change requiring CIMC Membership with Property Ownership for new owners. CIC continues to own/control the Welcome Center and sales force and holds a considerable number of unissued memberships with an agreement with CIMC regarding them. CIMC, CIPOA, and CIC (the 3Cs) jointly fund marketing of the Island, which includes properties and corresponding memberships.

2005-2008: CIPOA and CIMC urge the developer to withdraw from Marketing and Sales and reaches agreement with RE/Max to partner in marketing and take over the sales office. CIPOA leases the sales office from CIC and sublets a portion to RE/Max. RE/Max and CIMC agree to jointly fund marketing programs. CIMC and CIPOA agree to split the cost of the Sales Office and Marketing Programs and Staffing. Sales initially skyrocket. However, off-island realtors became unwelcome. The nationwide real estate market bubble burst. Equity retained by CIMC in property transfers was applied to operations, instead of being placed in reserves or reinvesting in capital improvements, or expanding marketing reserves for lean years. Sales begin to plummet.

2008-09: The decline and default of RE/Max resulted in elimination of the sales office and joint marketing programs. The void was not filled by the real estate sales community, agents positioned Callawassie Island as they saw fit. Off-island realtors, unwelcome previously, found reasons to avoid bringing clients here altogether. CIC advises CIMC that they will no longer be able to pay for unissued memberships. Facing financial pressures, CIMC was no longer able to fund marketing, let alone make up for that provided by RE/Max. Leads going to RE/Max were falling into a void. Market sales of homes reached a low of 2 in 2009.

2010: CIPOA and CIMC recognized the problem, and regained control of leads by creating a custom real estate web site. We provided leads to resident on-island agents, who performed as duty agents at the Welcome Center. Home sales increased to 8 in 2010. There was nothing to prevent the agents from taking our leads elsewhere. Managing the custom website was expensive and fraught with problems; we had no access to MLS and agents were not compelled to keep us advised of status. Sellers were generally unhappy thinking CIMC/CIPOA were responsible for marketing their home, which was their agent's responsibility. The BODs agree to have CIPOA take over the entire marketing program beginning in 2011. CIPOA purchases the Welcome Center from CIC at a very good price, with no cash outlay, resulting in saving $30,000 a year over the previous long-term lease.

2011: After a thorough albeit quick search that leveraged previous searches, CIPOA finds a Real Estate partner willing to manage our lead generation and real estate web-site fed by official MLS data feeds. Lancaster RE Sales allows us to avoid considerable Consulting and Information Technology expenses. When fully operational, the LRES website was generating 3 qualified leads day (on par with a leading RE Agency with offices in Bluffton whose corporation spent $19M on a website and lead generating system). CIPOA owners vote to approve a one-time marketing assessment of $143 because of its importance to sales. While Lancaster had delivered on the promise of a well-functioning website, we decided to part ways over the need for more of an on-island presence, and the need to better engage outside realtors. CIMC members vote to reduce the Golf Contribution (Equity) Fee substantially, from $45,000 to $15,000.

2012: Extensive interviews with numerous realtors showed that off-island agents continued to avoid bringing candidates to Callawassie Island, and that essentially none will refer candidates to other agents even within the office in fear of losing the client. Realtors and developers experienced with marketing in gated communities told us that because of our location and low number of sales, we needed to act like developers by specializing only in Callawassie Island, and fully protect referring realtors. CIPOA hires Blue Sky RES&M, a consultant with experience in turning around sales in stagnated communities, and partners with a Coastal Real Estate Solutions to operate using a developer model and a dedicated sales team. With the reduced Equity Fee, improvements in the local/national RE markets, and the enthusiasm/interest generated by our new partners and their outreach programs, sales more than doubled to 18 homes and 4 home sites.

2013: Equity Clubs and golf memberships are falling out of favor. The CIMC membership plan continues to be problematic because properties were tied to social and golf memberships, along with other issues. In addition, other communities offered incentives in the way of reduced/delayed dues, agent incentives particularly with respect to selling lots, and partnerships with builders/developers. CIMC steps up to provide sale incentives with Associate Memberships for selling agents, a 2-year half-dues promotion for the spring season, and in July adopts the Island Membership plan which makes it much easier to market The Island. Realtor outreach begins to take hold with our gate agent building relationships with off-island realtors. Sales increase dramatically to 35 homes/sites.

2014: Funding for marketing remains the same; marketing continues to funnel leads and convert them to visits, resulting in a healthy ratio of sales. Sales of 26 homes/sites are down, as low cost inventory was largely eliminated, the sales incentive program expired, the surge from the membership plan changes subsided. Up and running fully, our gate agent had 37% of the listings and sold/supported 73% of the sales.

2015: With sales reaching the point where the viability of a gate realtor is assured, they have increased their staffing. The dedicated sales team’s realtor outreach has begun to pay dividends with outside agent making significant sales.

2016: Sales start with a flourish, but begin to slow as marketing changes are being made and staffing vacancies restrict effort. A new contract for the gate realtor is finalized, with a change from a dedicated sales team to a more traditional real estate office in which agents can take our leads and sell elsewhere. A 3 year contract is signed with Coastal Real Estate Solutions II, a spin-off from Coastal Real Estate Solutions.

2017 and Beyond: Coastal Real Estate Solutions II continues to bring stability and growth.