In this latest blog from the Top Tips for Selling Your Home series, Independent Real Estate Agent Steve Gott from Gott Realty covers the topic: Is Real Estate Advertising Worth the Cost?
We all know that when it comes to selling your home, there are many costs involved. And the cost of advertising is often charged by a real estate agent up front and can be a bit overwhelming. So, we’ve answered the question: is it worth it?
Cost of Advertising
Let’s be honest, advertising your home is expensive. Just 60 days on one of the major portals with a premium ad can cost you anywhere from $2000 up to $5000, depending on the agent you choose.
Some agencies have contracts with portals and others don’t have contracts at all. Plus, there is the cost of photography, brochures and signs – it just seems to go on and on.
Is this cost worth it?
Let me ask just one question. What item have you bought that wasn’t advertised in some way or another? The answer is practically nothing. There is advertising everywhere. Some is good, encouraging you to buy and other ads just don’t do anything for you.
When it comes to selling your home, it is a big-ticket item. Meaning there are less buyers that are ready to buy now. So, to find the right buyer, you must tell more people that you are on the market to be seen.
Take bread for example. It is an everyday commodity and yet it is advertised regularly on TV and in supermarket brochures.
Another example is cars. Cars from the bottom of the range ($20,000) through to vehicles priced in the hundreds of thousands of dollars are advertised across a broad spectrum of media – TV, glossy magazines, billboards, airports and the internet including Facebook, the list goes on and on. This advertising cost thousands of dollars per car.
So why do sellers and many agents baulk at the idea of using modern advertising and a decent budget to sell a big ticket item like their home?
It is all about Cost
And also about paying this cost upfront. Another factor is that many big brand agencies may charge very high commission rates to sell a home and this causes the seller to skimp on their advertising budget. A dangerous mistake considering the seller is about to sell the only tax free asset they have, their home.
There are two types of advertising campaigns: Cookie Cutter Promotion and Modern Agency Promotion.
Cookie Cutter Promotion: this is usually a promotional campaign designed around cost. It’s used by some big brand agencies that compensate for their high commission. They spin the spiel that they have such a large following of buyers that there is no need to spend a fortune on advertising. All they need to do is take a few photos, maybe a floor plan and place it up on a local suburb real estate portal. Then, sit back with their fingers crossed in their flash offices and hope it sells.
Modern Agency Promotion: Imagine this – put yourself in the buyers shoes for a moment. You are hunting for a home and see hundreds of homes on the portals, some with poor photography, but mostly all are the same featuring half a dozen pictures, a short description and maybe a floor plan. Then you come across a property from a modern agency who goes the extra mile to attract buyers. This property has amazing photography and quality video with real internal video and internal shots of the home. Modern agencies will also always give all buyers a high quality glossy full colour buyers booklet to go over so that they have all the information about the home they need before purchasing.
When it comes down to selecting a promotional campaign this is the best way to look at it. There are two identical cars for sale on the car lot, both at the same price.
- Car 1 is dirty with papers and food containers spread through the car and the outside of the car is covered in dirt, stone chips, dints and so on.
- Car 2 is clean and shiny, sparkles in the sun, smells great and is inviting you to buy this car, so it sells fast and without any negotiation or the dealer having to throw in extras to get it sold.
The same idea should apply to your home.
A Cookie Cutter approach means less buyers see it and sits longer on the market, increasing your chance of selling for much less than you anticipated. A Modern Agency approach allows more buyers to see it and increases your chances of selling for a higher price.
Is Real Estate Advertising Worth the Cost?
Thinking of selling your home? Speak to Gott Realty today!
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Gott Realty service Albany Creek, Eatons Hill, Cashmere, Warner, Lawnton and Bray Park and many more areas across North Brisbane. Learn more here on our blog.