Is Your Agent Sharing the Cost of Your Promotion?
Matthew Wilson • Principal, WilsonBritten Real Estate • 29 November 2017 3 minute read
At what point does a homeowner cease paying for the promotion of their home and start paying for the agent or agency’s local profile? Matthew Wilson, from WilsonBritten Real Estate, takes a look at this ongoing debate and gives us some insights into Vendor Paid Advertising (VPA).
In recent years we have seen the emergence of upfront vendor paid advertising: this is when the owners of the property pay upfront on day one of selling their home, for things such as professional photography, floorplans, photo signboards and expensive internet advertising. In days gone by this practice was not uncommon for properties that were going to auction, however the trend seems now to have moved to sales under private treaty (when a home is advertised for a set price).
Whilst it’s not unreasonable for the owner to share part of the cost in promoting their home, especially when external companies are coming in to do photo shoots and floor plans, one does need to question why, in a market with very limited stock or competing homes for sale, an owner needs to pay extra, simply to see the selling agents face on the advertisement.
To illustrate my point, I just searched* one of the major real estate portals for a four-bedroom home in Bonnells Bay with two bathrooms and a two-car garage. In total, my search result presented me with 16 homes. All these homes have one thing in common: they appear on page one of my search results. However, these adds will have ranged in cost from approximately $400 right through to $2,500. Admittedly there are differing styles of ads - some offering greater features than others, however the main feature that stands out is the increased size of the agents branding and in some cases, for a 2,500 advertisement, the addition of the selling agents personal photo.
So, this begs the question, “Are bigger and more expensive ads going to help me sell my home?”
From where I stand and with my experience, I would say no. You see we currently hold 21% of local market share; in fact, we are the market leader in the region based on sales in the 2017 calendar year. I tell you this not to gloat, but more so to illustrate that over 90% of sellers that engaged us to market their property paid only $375! And that was payable only on the sale of their home. This is in stark contrast to the $1,100 to $3,000 in many cases, paid upfront before the home is even placed on the market. And, if 21% of homes in the region (more than any other agency) sold for a $375 advertising campaign, then you have your answer. You really do not need to pay more!
At Wilson and Britten our marketing campaign will supply you with professional photos and floor plans as well as prominent advertisements on domain.com, realestate.com and wilsonbritten.com. And in turn we will subsidise the cost by 50%. As well, if you don’t sell your home and you decide to stay put then we will not charge you a cent.
Want to know more? We’re available seven days a week and are happy to share with you our point of difference that sets us above the rest and continues to produce outstanding results.
*data correct at time of publication, out of region sales not included
|Matthew Wilson has worked in real estate for more than twenty-six years, eighteen of these as a Principal.
WilsonBritten has an enviable reputation for obtaining highly desirable results through proven strategies and expertise in skilled negotiation.