When you make the decision to sell your home, you should factor in some costs along the way. Advertising costs usually take up the largest part of your budget. How fast you get a buyer is usually determined by the kind of advertising that you use and how you use it. If you decide to use a real estate agent to find potential buyers, you should expect that they will charge you for advertising and marketing. They may ask for an upfront fee or they may deduct it from the proceeds of the house. If you don’t want to pay more than is absolutely necessary, it is important that you are familiar with different advertising types and how much they cost.
There are numerous ways to advertise and some are more effective than others.
- You can use newspaper adverts in the classified. The thing to take into account if you choose to use newspapers is that not many people look for properties in the classifieds any more.
- Magazines are also a way for property advertising but again, they attract very little attention.
- Printed flyers and brochures are more effective than newspapers and magazines but it can be quite expensive to print them. Also, they are not really targeted at anyone because they are handed out to everyone, whether they are looking to buy a house or not.
- Signage is great but it is limited. If you choose to use it, you should back it up with some other form of advertising.
- Lastly, you can use the internet. There are companies that specialise in For Sale By Owner deals. They ask you to pay a small fee and upload your property description and images. They then list you with the top real estate websites in Australia. They direct all enquiries to you and you can interview prospective buyers yourself. This is the most efficient way of real estate advertising because it is fast and it is cheap.
HOW DO YOU KNOW HOW MUCH YOU WILL PAY FOR PROPERTY ADVERTISING?
It is advised that you consider advertising costs to fall between 0.5% and 1% of the value of the property. This of course will vary depending on how you choose to advertise. Here are some tips on how to know how much you will spend.
- Talk with your real estate advertising agent about what strategy he plans to use to sell your house. He has sold homes in the area so he knows the best way to get the attention of buyers.
- Don’t fail to negotiate. Advertising costs are not a set fee so your real estate advertising agent can actually come down from the asking price. If he wants to be paid after the house is sold, you should ask in advance what the costs will be and then negotiate for a smaller fee.
- If you have to give property advertising fees upfront, make sure that it is done with a signed agreement that states how the money will be used. The agent should deposit the money in a trust account and finally, when the house is sold, he should be able to match the whole amount to receipts and invoices that he received for all transactions.
- Your agent may prefer that you include advertising and marketing fees in the amount that they get paid when the home is sold. Analyse the figure he is asking for and find out just how much they will be spending on advertising and how much will be their fee.
- Most agents will want to be paid whether or not the house sells. While this is more or less standard practice in Australia, you should know that you can ask for a No Sale No Fee contract. This is designed to put pressure on the agent to find you a buyer. If the agent isn’t agreeable to this, you can agree on a small amount that you will pay if he fails to sell the house.
- Always keep in mind that your advertising is so that you find a buyer and not about the services of your real estate agent. Carefully look at the strategy that he is using to maximise the exposure of your home and make sure that every strategy is just right.
WHICH IS THE MOST EFFECTIVE WAY TO ADVERTISE?
It is the internet. It not only gives your property a lot of exposure, it is also quite cheap. What is important is that you choose the right location on the internet. You want a location that has a lot of targeted traffic. This is the kind of traffic that has people who are looking specifically to buy a property. Most of those sites in Australia do not allow individuals to list; they only allow people who hold real estate agent licenses. You can go around this by using a For Sale By Owner site. These usually have the license and for a small fee, they will list your property on the right sites.
There are many For Sale By Owner sites in Australia so choosing between them may prove to be a bit of a job. Look for the ones that partner with all the top real estate websites while at the same time charging a reasonable fee. These are able to give your home maximum exposure and you will get a buyer fast.