Are you afraid to ask for Advertising Dollars? Dave Eller argues that advertising is THE best way that you can get the highest price for the home that you are selling.
- Advertising: a form of communication intended to persuade an audience to purchase or take some action upon products or services.
- Investment: the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns.
As agents, our goal should be to obtain satisfactory vendor investment in advertising to enable their property to be sold for the best possible price in a timely fashion.
Most agents are too afraid to ask for advertising dollars. Their fear is that the vendor will say NO, or worse, won’t give them the exclusive to sell the property. A brilliant quote by John F. Kennedy relates to this…. “Let us never negotiate out of fear, and never fear to negotiate.”
So what will engage a vendor to invest in advertising? – When they see value in it. What will create the value for the vendor? – The direct benefits to them of that advertising.
But what are those benefits? When we take on a property listing, we should aim to not only sell the property, but to get the best price and to sell in a timely fashion
Getting the best price
In order to get the maximum price, we need to get the maximum amount of interest on the property. We need to create maximum urgency in the mind of the buyer. As a property remains on the market, over time, the urgency in the mind of the buyer dissipates. Additionally with buyers having access to more information than ever before, they have become more aware of how long individual properties have been for sale.
There are only two reasons why a genuine qualified buyer is still out there looking: they either haven’t found a suitable property, or, if they have, they missed out because it sold at auction or perhaps they were too late, or even hesitated.
You need to have as many people view the home as possible. One of the best ways to do that is to have the home open for inspection. I am amazed at the number of agents who still tell vendors that there is no need to do open homes.
The Red Hot Buyer
These are the buyers that are ready to purchase now, and are the ones looking every day on the internet, in the paper, and driving around neighbourhoods they like. They are the ones attending the open homes. You want these buyers at YOUR open home. Therefore, you have to make sure that they know that the home is for sale.
You will want to make sure that every buyer out there looking for a property like the one you are selling, in the same area and in the same price range, knows that your vendor’s property is on the market. You have to give them the opportunity to come through and view it at the open inspections. You have to give them the opportunity to buy it!
Is it fair to say, that if you had 20 people go through the open home of a property, they would all buy it……at a certain price. That price may and will differ for all of them. Some may not really like it, but if you were practically giving it away then they would buy it. But as that price goes up, you get fewer and fewer buyers. You need to find that buyer at the top of the pyramid, the one who will pay the highest possible price.
Where are you going to find that buyer?
This is the challenge you face. However, the reality is…No one knows! And it’s best not to take chances. Everywhere that these buyers are looking, you want them to see the property you have for sale. And the only way that you can make sure that every ‘red hot’ buyer sees your property, is to market that property the right way. That includes, but not limited to, the Internet, the newspaper, open home inspections, a signboard, and anything else you deem appropriate for the particular property. The scripts need to carefully written in a way that engages the buyer, and the photos need to show the home in the best possible way. It’s all about connecting with the buyers: Connection is Key.
The reason we advertise is about finding the perfect buyer. And I am an advocate of advertising – if it is done properly. However, there is nothing more frustrating than to look through the newspaper, on the Internet, or at signboards, and see rubbish photography, read scripting that has been given no thought, and headings that have no regard for the target market (but that is a whole other article!).