How much should your agent spend on marketing?
The objective of any advertising campaign is to get the most people exposed to your message, and your property sale is no different. The more interested buyers, the more likely you are to realise or exceed your sale price.
So how much should you expect your agent to spend on marketing to get the most bang for your buck, and which channels offer the best ROI? Let’s first look at how your property can be marketed by your agent.
How can my property be effectively marketed?
There are a number of ways your agent will get the word out. Most will use all, or combination of these channels, to maximise the exposure of your listing. These include:
- Online or digital channels have become the most popular way to advertise a property. Why? You reach a lot of people for a reasonable outlay. This is dominated by dedicated real estate sites such as Domain and realestate.com.au which list properties by state, suburb or postcode and have millions of visitors on a monthly basis. Your agent will also list your property on their own site, which should include professional photographs, video tours and maybe even virtual reality (VR) walkthroughs. You can also expect agents to make use of social media, listing on visual platforms like Facebook and Instagram, as well as pay per click (PPC) advertising on search engines.
- Print was the traditional channel for advertising property, and is still used, with agent’s magazines, brochures, posters, flyers and newspaper listings all playing their part.
- Access to open house viewings, the first-person experience that no other medium can compete with, using perhaps the most powerful marketing tool at your disposal - your property.
- Signage outside the property is essential, especially to generate word of mouth from local residents and passing traffic.
- An agent’s database, a list of potential buyers they have generated over time, is another audience they may well market your property to.
What is the most effective form of advertising?
Once upon a time newspaper listings were the place to advertise a property sale. Thanks to the internet and real estate sites this is no longer the case. Internet listings are the most effective form of advertising, followed by print media and referrals. Agent’s are likely to use a combination of marketing channels to maximise the exposure to your listing.
What marketing costs can I expect to pay my agent?
Expect to pay anywhere from 0.5% to 1% of the total value of your property toward marketing it. On a $750,000 property this works out to $3,750 and $7,500 respectively. These costs are negotiable and vary depending on the local market, the property location, the type of property and the specific agent.
Sound a lot? Bear in mind that real estate agents will have access to more marketing channels than you, and at a lower cost. Successful agents will also know what types of media will be most effective in your local market. Generally speaking the more you pay the more exposure your listing will get.
Domain currently charges $660 for an 8 week listing and $770 for 12 weeks, though an agent is likely to get a discounted rate - and should pass this saving on to you. Newspaper classified are generally more expensive than online listings.
Questions to ask your agent
Your initial meeting with an agent is the perfect time to get answers about their marketing strategy for your property. Questions to ask include:
- How much do you charge for marketing my property?
- Is this fee separate from your sale commission?
- How will you market and sell my property?
- What channels will you make use of and why?
- How long will my property be marketed for?
- When am I liable to pay you for marketing costs?
- Do you have a ‘no sale, no fee’ policy?
Take the time to consider if you are getting value for money. Will the marketing strategy the agent presents help get the price you want in the timeframe you have?
Ready to chat to a local agent? Then get in touch with OpenAgent today and we’ll help compare, select and contact top agents where you live. Or read our other property marketing tips, like using a professional photographer or how to effectively stage your property for sale.