17 May 2015
The Need to Advertise
Hi I’m Michael McDonald, CEO of Raine & Horne South Australia. I have been in the real estate industry for nearly 20 years as a salesperson, property manager, and agency principal. I have also worked as industry educator and consultant to the marketplace in general.
On behalf of Raine & Horne, I would like discuss with you a few of the important decisions you will need to make when you are thinking of selling your property.
Once you have made the decision to sell your property, it is natural that you will want to see some action fairly quickly. You will expect the salesperson to immediately bring perspective buyers to your property. Whilst your Raine & Horne salesperson will have a database of interested buyers to draw from, there is no guarantee that these people will be the correct buyer for your property. In order for you to get not only the best possible price but also the best terms and conditions of sale it will be necessary to throw your net far and wide to let all potential buyers know that your property is for sale.
When it comes to selling a property, it really is a numbers games. The more people who know that your property is for sale, the better the chance you have of more buyers wanting it. The more competition you can create, typically the higher the price you can expect and hopefully the shorter the time your property will be on the market.
When you sign your agreement with your Raine & Horne agent, you really entered into a partnership. Both your agent and yourself have certain responsibilities, your agent is responsible for using their market knowledge and sales expertise to sell the property for the highest possible price in the shortest possible time and you are responsible for maximizing the sales appeal of your investment.
Just as you would spend money on maintenance or on improving the cosmetic appearance of your property, the next main investment you should make is to ensure that you advertise the property effectively.
This really is an investment in the sale of your property. Just as replacing carpet, repainting or spending some money on landscaping are considered worthwhile investments by most sellers.
There is an old saying in real estate, it’s that you can’t sell a secret.
The goal of advertising your property is to expose it to as many people as possible, and often spending just a little more can give you a lot better results.
Without the right investment in your advertising schedule, you run the risk of:
- Your property not selling
- Wasting money on ineffective advertising
- Paying more in ongoing mortgage and interest payments
If you are selling your home remember it really is the only remaining tax haven & $50,000 more equates to $100,000 before tax, so why wouldn’t you invest casting your net as wide as possible.
Research by RP Data has proved that homes for sale that are advertised in BOTH print and online are:
- More likely to be sold than those that use just one medium.
(In some areas it was as high as 34%*);
- Spend less time on the market;
- Discount their sale price less than homes that are advertised in just one medium.
The days on market, discount size and success rate varied market to market.
* Source: RP Data Media Maximiser 1 July 2011-30 June 2012
Discuss the advertising process with your Raine & Horne agent. They will plan a tailored marketing campaign to suit you and your property, one that can include the use of several media outlets.
You are really not maximizing your investment unless as many buyers as possible know your house is for sale. Remember, you cannot sell a secret.