How Much Will I Need To Spend On Advertising My House?
If people don’t know your house is for sale, it just won’t sell. Advertising is absolutely essential to get the word out and to get people interested.
The simple answer is that it varies but a seller should expect to invest at least $200 to $2000 on average for a reasonable marketing campaign.
A solid marketing plan is one of the most important assets an agent can bring to the sale of your home. There are many areas of marketing that need to be considered in order to spread the word to as many people as possible, but the costs associated with advertising also need to be justifiable.
A great marketing campaign can help your house sell in a shorter amount of time for a better price. Let’s look at why advertising is so important, and how a good agent will use different forms of advertising to get your house in front of potential buyers.
Types of Marketing
Marketing comes under two broad banners – traditional and digital. Within those designations there are a wide range of forms and approaches. Advertisers need to consider the ROI of their strategy, or Return on Investment, which looks at how effective the investment in advertising is compared to how expensive and/or time consuming it will be.
In most cases, digital marketing tends to have the lowest cost and least physical effort associated with it, but physical advertising can be extremely effective at getting a property in front of genuine buyers.
The best strategies will use a combination of both types of marketing, and they can work to directly complement each other. For example, a physical sign outside a property can generate buyer interest, with a link to the online listing where the buyer can see more about the property, find out extra details like open home schedules, and connect with the agent.
There are also additional tasks associated with marketing, such as professional photography, design, printing, brochure and flyer creation, putting up “For Sale” signs and many other jobs that need to be done to promote your property.
There are many different types of marketing associated with selling a house. Here are just a few of the ways an agent might get your house in front of buyers.
Print media is one of the best known, and most widely used form of traditional advertising. Newspaper listings, window displays and signboards are all examples of print media that are
aimed towards gaining interest from buyers who are browsing. Other types of print media used might be brochures and letterbox drops.
Word of mouth has always been important for sales. That could include the seller talking about their property directly to others, and also taps into an important quality in a great agent – contacts. A good agent will know people who are looking for a house, and can even team up with other agents to connect buyers and sellers. Word of mouth can also be part of an online strategy, with shares through social media.
Real estate websites are an essential tool for the modern seller. Sites like realestate.com.au and domain.com.au allow buyers to search for properties, and are also a great central point for interested buyers who have been directed there from other forms of marketing. The agent will also list the property on the website of their business.
Websites are also great for use with social media, where links can easily be shared and viewed by potential buyers. The ability to easily share a link across multiple platforms without cost to the seller is a valuable marketing tool.
Email marketing gets your property listing into the hands of people who are actively looking to buy. A good agent will have a large list of email subscribers to target.
The Cost of Marketing
Of course, marketing costs vary widely. The cost will largely depend on:
· Whether your agent includes marketing as part of their commission or if it’s a separate fee
· What kind of marketing is used
· How long the campaign needs to run for
· Location and type of property
· Whether the agent passes on discounts from advertising-related businesses and sites like domain.com.au
· If your agent is open to negotiation
· How much work you undertake yourself
It’s also important to consider the cost vs reward. For example, newspaper listings are some of the most expensive types of advertisement, and are among the least effective forms. If a newspaper ad is included as part of your agent’s standard package then it doesn’t hurt to try, but if it will cost extra, the money is probably better spent elsewhere.
Other than basic physical advertising like a signage board outside your property and physical listings on the real estate office, most agents tend to focus on digital advertising. It’s relatively inexpensive and can be effectively targeted at buyers. A listing on a major real estate website is extremely popular, as it provides a single, searchable point for all the information about your property as well as attracting buyers actively searching for properties.
But What Will it Cost?
A general rule of thumb when calculating advertising costs is to set aside around 1% of your property’s value. That number is highly variable depending on factors such as your location, the type of property for sale, the skill of your agent, and what the real estate market is doing at that time. In a seller’s market, for example, you’re likely to need a lot less advertising as more buyers will be actively looking.
As a rough guide, real estate agents tend to charge between $500 - $2,000 for marketing. Some include the fee in their commission, while others add the fee on as an additional cost.
Online property listing sites also charge a fee for your property to be listed – domain.com.au charges around $499 for your property to be listed for 28 days. Again, your real estate agent could include this fee, or you may have to pay separately.
Paying for Marketing
To make sure you’re getting the right deal, you’ll need to make sure you have a full list of the kinds of advertising your real estate agent offers and what it will cost you. The real numbers will allow you to budget, and you can negotiate based on what strategy you’d like to pursue.
That being said, your agent is the best source of information as to what will work for your type of property in your area. Work with your agent, and figure out what the best plan will be for your unique situation and budget. It only takes one buyer for you to sell your property, but to find that buyer you’ll need to work hard to implement the right marketing strategy.