Marketing Budgets?

Spending 1% of the property’s estimated value in marketing accompanied by the direction to “tell your agent you want this” is to be expected when the person offering such “advice” has been commissioned by a newspaper. Yet it does seem to me to be code speak for: when you sell your property, be sure to donate a substantial sum to Rupert Murdoch. Spending heaps on marketing campaigns in newspaper marketing on the presumption that the result will be significantly improved is, as they say in the classics, “bullshit”. How can such spurious claims be supported?  Advertising agencies would need to demonstrate this claim, and they can’t unless a property has actually been sold employing a huge advertising budget and then compared to the sale of the very same property at the very same time that has been sold without the expensive advertising campaign. Such a comparison obviously can’t be done.

Primarily, big marketing budgets mostly benefit the Real Estate Agents who promote themselves mainly by thus being able to create a higher business profile for themselves, conveniently, at their vendors expense. The facts speak for themselves, studies show that an estimated 70 to 90% of properties are located by buyers over the internet, as opposed to people going through newspaper ads. infinitum in a blunderbuss approach to finding a property. Indeed I have seen agents successfully sell properties that have never been advertised at all. I have seen some agents successfully utilize a strategy whereby they advertise only one property to draw enquiry and then direct buyers to another six comparable property’s they have listed but have not advertised. Very often listings that haven’t been advertised can create a sense of excitement in a buyers mind and can lead to great results, key is the agent having the opportunity to speak to a buyer, an opportunity that is provided in this case by the one advertised property that potentially could sell the other six properties.

Signage on the property, according to some estimates, accounts for up to 15% of subsequent sales but more importantly enquiry coming from a sign is usually a much better quality enquiry in terms of buyer qualification. Prospective buyers have actually visited the site, have a feel for the immediate area around the property and are advantaged by information on a property that newspaper ads. or even the internet cannot convey in the same way as a physical attendance provides for. In addition, the resident neighbours often become great salespeople by talking to friends or relatives whom they know who the property may suit and would like to have as neighbours. These neighbours aren’t necessarily scrimmaging through the papers actively looking for a property as such only becoming aware that the property has come on the market due to the presence of a sign. It is also a fact that people contemplating buying in an area will drive around it to check it out which once again indicates the crucial difference a sign can make as both an economical and effective contributor in effecting a sale.