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How Much Money Should You Spend to Market Your Home?

by Marquette Turner

in News & Views

How much money should you spend on marketing when you choose to sell your home? This question is one of the biggest problems facing vendors when examining marketing proposals from real estate agents in Sydney, Melbourne and throughout Australia. Rarely are the true facts ever offered as most agents have no formal marketing or negotiation qualifications. Even worse for vendors is that the entry requirements into real estate are so low, requiring a Certificate of Registration – taking in some cases just three days or even less if completed by correspondence.

The real issue here is what are the facts when spending money with real estate agents? Are they really looking to sell your home for the highest price possible and will their marketing suggestions make any difference? At Marquette Turner we have examined the issues associated with marketing in enormous detail and the reality is very different to that put to vendors by agents with little knowledge regarding marketing – which is in most cases your biggest asset. The fee you pay to real estate agents in Sydney, Melbourne and throughout Australia is one of the largest professional fees you will ever pay! – usually more than you will pay to your Solicitor or Doctor.

The best research has been done in the United States by the National Association of Realtors who examined how buyers found homes between 2004 and 2006. The internet is becoming more and more important in the lives of all Australians and the results of their research cast enormous doubt over the effectiveness of newspaper real estate advertisements. Most agents would suggest advertising in glossy newspapers like the Wentworth Courier and Mosman Daily in Sydney costing up to $3500 per page each week of any marketing campaign. The research from the USA sugggests that less than 5% of properties are purchased by buyers who found their home in a newspaper. The research indicates that almost 80% of all homes sold are found by buyers searching on the internet.

I guess the most important consideration when looking to find the agent to sell your home is what evidence they can show you to substantiate their suggested marketing campaign. What statistics can they offer from independent sources to support their claims and what formal qualifications do they have in negotiation? These questions if answered well will make the process of choosing an agent an easy process and will ensure that you save thousands of dollars in wasted marketing money. You will also achieve the highest price possible by ensuring your agent has formal qualifications in real estate negotiation – maximising your net result.

Michael Marquette

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