How much should advertising your home cost?
Advertising and marketing your property as a seller is a crucial part in the process of getting as much as possible. However, it’s a common question – just how much should you be spending? What is reasonable?
As the property price increases, it’s increasingly likely that you’ll want to add more whistles and bells to your marketing. This may include simply online listings and good photography or it may extend to videos of the property itself, an increasingly used marketing tool, and full-blown websites detailing a property and its history.
The only right way is that one which boosts the property, and its chances of selling favourably, to its best position for the seller.
Brandi Wikaira, who has recently moved to Robert James Realty as a property consultant from a newspaper advertising sales background, told Property Observer that it’s not always a fun topic for vendors facing the fees.
“Vendors tend be become very negative when any agent talks about allocating money on marketing their property as historically they people don’t think they need to,” explains Wikaira.
She recommends the amount of 1% of a property’s value as a good place to start. This rule of thumb doesn’t equate to a huge sum, for instance $4,000 on a $400,000 property. This simple guide can quickly dictate what is and isn't possible in an advertising campaign. $300,000 property? Throw the dream of an entire feature-length film out the window, however don't give up on well-placed advertising and professional photography.
“Times have changed in how people buy properties and the internet is without a doubt the biggest one, 87% of people use the internet as the main tool to search for property to buy which is huge number,” she explained.
She detailed listing a property as a 45-day “highlight” home on a listings website, and in just five days it had been viewed 510 times.
“If I had $4,000 to spend in marketing on an entry level property I would be featuring the property online - as a feature or premier it means you are on page one, not three or four,” she explains.
She suggested that, to reach the older demographics, a portion for advertising in hyper-local papers, or property magazines, could be the way to go in combination with the online approach.
“When you are talking about advertising on the internet you have the option of going that bit further with virtual tours etc which can help engage the buyer in the home particularly if they are interstate and don’t have the advantage of attending an open house,” she said.
At the end of the day, she recommends remembering the following: It’s all about reaching the right person.
“It’s about reaching as many potential buyers that you can in your local market as well as the potential interstate buyer or investor,” she explains.
“Many agencies now promote selling your property with no marketing fees and, like the old adage goes, you get what you pay for!”
“Spending money on marketing doesn’t need to be a scary thing and it’s about finding the right balance across all forms of media.”
Paying for signboards is another area of heavy contention. While some are vocally against the concept, such as Just Think Real Estate's Edwin Almeida who explains they more often advertise the real estate agent than the vendor, a view that is increasingly becoming mainstream, others note that they get call-ins from driveby viewers. While this may be true on busy streets, or those in high traffic areas, those in dead-end roads, circuits and in unit blocks may want to re-consider.