When selling a property, there are several expenses that sellers often forget about, which must be considered when determining the sale price. One of these expenses is marketing.
Because a buyer can’t purchase a home they don’t know is up for sale, marketing your property is a crucial part of the sales process. Let’s look at why marketing is so important, how to budget for it, and the value that you receive from this expense.
How Much to Budget?
After you have researched the current market and established an asking price for your property, you should budget to spend between 0.5% and 1% of the value of your home on marketing. For example, if your asking price is $800,000 – you should expect to spend roughly $4,000-$8,000. This price range will allow you to utilise as many or as few marketing techniques that will suit your sale.
What Does Marketing Entail?
You may be wondering where the marketing costs are going, after all, up to 1% of your asking price can appear to be a large number when added to your other sales expenses. Some of the most popular and significant marketing avenues include:
- Listing on websites such as Domain and realestate.com.au
- Print and social media advertisements
- Signage placed on your property
- Flyers and brochures that are printed and distributed at the open house each week
- Professional photos for the printed materials
Your marketing strategy should include any tactics that will showcase your property in its best light, and also help you to stand out from other homes in the area. It may be beneficial to visit comparable properties for sale near you to gauge how much they have put into their marketing. This can help you determine which materials you are interested in.
What Are the Benefits of Marketing?
As you begin to calculate the marketing expenses and the figure starts to rise, rather than looking at it as a loss in profit, consider it as an investment in the sale.
Quality marketing of your home will enable you to reach the highest number of potential buyers and will ensure you stay on their radar. The more people who see and are interested in your home, the higher your chances are of a fast sale to the highest bidder.
Perhaps the most notable benefit of a great marketing plan and selling quickly is that you also save time. The goal is to ensure that your property does not sit on the market or grow cold. Spending more on marketing early in the process may be the difference between selling within weeks or waiting months before your home sells.
Some marketing strategies aren’t affordable. Print advertisements can be costly, but may be worth it in areas with well-known property magazine circulation. Often, it can be the parents of the buyer who are reading these magazines and will advise their children of any opportunities.
On the other hand, there are certain marketing strategies that are extremely effective without spending too much. As part of working with an agent for your marketing strategy, you may also have the benefit of reaching their database of potential buyers. Many agencies will send “New Property” emails to their database before your first open house.
Marketing Costs With An Agent Or Without
The amount you choose to spend on marketing will depend on several individual factors relating to your sale. While you should always have the final say in the amount you budget for the marketing of your home, most real estate agencies will have marketing packages that you can choose from and will range in price. Some agencies include the cost of marketing in their commission.
Before settling on a particular agency, discuss marketing strategies and fees with potential agents. Some fees are set as a guideline and can be negotiated, while other agencies may be willing to include a “no sale, no fee” clause in your contract, which means you won’t pay marketing fees if your property doesn’t sell. Don’t be afraid to discuss all options.
If you’ve decided you want to sell your home privately, you’ll have the opportunity to handpick a strategy that’s best for you. You should compare how much money you will save (or spend) without the expertise and guidance of an agent.
Final Thoughts
If your property is in high demand, you may be able to get away with spending closer to 0.5% on marketing. More expensive or more obscure homes will likely benefit from spending extra on their marketing campaign. Consider your property type when choosing your marketing budget.
As you decide on the amount you would like to spend on marketing your home, put yourself in the buyer’s shoes. Good marketing doesn’t have to be expensive, but it does need to be effective, and the quality should be visible to buyers. Determine which areas you want to spend more money on and which ones may not be suitable for the sale of your property.
Using the guide of 0.5% – 1%, with the help of your agent, you should be able to come up with an amount that will help you sell your home without high out-of-pocket expenses.
Remember, with a Brickfloor Market Price Guarantee in place you can be assured that your home will sell for a certain price and that your marketing dollars won’t be wasted.
Refer a friend
Know a homeowner who may benefit from Brickfloor’s Home Price Guarantee? Contact us to refer a friend and you will receive $1,000 cash if they take up a Market Price Guarantee.
