The Cost of Promoting Your Property for Sale
Written by Scott Tomlinson, LJ Hooker Browns Plains
Selling your property can be a daunting experience, especially if you have never sold before or it has been a number of years since you last sold. Having a trusted advisor as your Sales Agent plays an integral part in keeping you informed and in making the sale of your home as stress free as possible. The promotion of your property is just one of the many things your Sales Agent handles for you.
Effectively promoting your property is an essential part of achieving a premium price in the successful sale of your property. At L J Hooker we are experts at marketing properties to achieve outstanding results for our clients. Our secret to success is making the BEST use of the multitude of tools we have available to showcase your property and present it to market.
Methods such as internet, social media, signboard, professional photography, local marketing and newspaper advertising all play an important role in spreading the word about your property and creating healthy competition among buyers.
Each of these avenues comes with a cost that must be factored into your overall advertising budget. You will generally be required to pay a commission to your real estate agent on top of the advertising fees. This is due to the fact that when a real estate agent undertakes the task of selling your property, they bring expertise, negotiation skills and advice that can significantly contribute to a higher selling price and complement the marketing efforts.
A common question/objection amongst sellers is why should they spend so much on their marketing budget but in reality they are not high in comparison to the value of their property. The old age line is “you can’t sell a secret” so another word is you can’t sell a property for the highest price possible if you don’t attract all the buyers in the market place by promoting the property in ALL forms of advertising available to you.
Our job as your Sales Agent is to find the best buyer in the market place, not necessarily the first buyer. Now back to the cost of advertising your property for sale, generally this cost is about 0.8% of the sale price of the property. For example if a property was expected to obtain a sale price of $500,000 than a marketing budget of up to $4,000 should be allowed. I hear you, you think that is a lot of money to pay for marketing your home, but what if your property sold for $480,000 because you decided to save money on marketing and only spend $2,000 instead of the recommended $4,000 and because you reduced the marketing budget you reduced your chances of reaching all the buyers in the market place. So did you really save money?
Let me ask you this, your car insurance. If you have a $25,000 motor car I would imagine that you would probably pay around $500 per year in car insurance just in case you have an accident. This represents 2% of the cars value which is more than double what we ask as your Sales Agent to invest in the marketing of your home, usually your most valuable asset. Even if you only paid $250 per year for your car insurance, this still represents 1% of your cars value. So in the scheme of things I believe if you want to achieve a premium sale price for your home it is very important not to skimp on the marketing budget.
If you have any questions in regards to the selling of your home, please don’t hesitate to contact your local L J Hooker Office
, I’m sure they will be more than happy to help you out. We would love to be your agent of choice