Welcome to my real estate blog. Had some interesting discussions with both agents and vendors recently about marketing proposals. We have some amazing stats in the market with very low stock levels, plenty of buyers and not much choice. The average days to sell now around 13. Yet, for some strange reason, SOME agencies are proposing a 5 week marketing campaign. Not really sure what rationale is behind that? Do they not understand the market, or is it about marketing revenue?
At the end of the day, the agent is acting totally for the vendor, what they suggest, recommend and advise during the marketing proposals, should be options of the highest integrity and value to the vendor. What ever the situation of the property, the market or the vendors expectation, the agent is bound by some pretty serious compliance regulations surrounding this. Yet to me, this sort of activity is highly dubious? I just don’t get it. What subject matter do you think is critical to good marketing proposals, and what are you expecting?
Am I missing something? I get agents to scared to use floor plans in their marketing, because of potential comebacks from REINZ with the accuracy. Seriously? I’ve been involved with thousands of floor plans, and never once has there been any concerns as to the intention of, the accuracy for intention or any other concern. One agent told me last week that REINZ was taking action over a floor plan. I made enquiries to find out about this. Yes it’s correct, there was some “possible” action against an agent regarding a floor plan. And this action was a result of NON COMPLIANT areas on the plan NOT DISCLOSED. Allegedly the agent had failed to disclose that a sealed in area was not code compliant and would fail a LIM report. Stupid stuff in a heavily compliant industry. And for the record, this was not in our region.
Back to the point, why would an agent propose such a strange option to a vendor? Why would a vendor consider this to be good value? Maybe they are having a back up plan if they cant hit the 13 days mark? Does the vendor get a refund if it sells early? Is having a back up plan best practice marketing? Its an interesting debate to understand the pitch and how it could be of benefit for the vendor. I must be missing something….
Another pitch point from agencies is the number of agents in their network. Sell with us, we have agents here there and everywhere! What real advantage is that? Considering buyers search property at over 90% online, and get their market information, options, open homes and comparisons pretty much all on line, what does having 10 branches do? As a buyer do you only decide to buy from agency 44? Or do you look for the HOUSE you want, and rock up to look at it with the agent that is listing? I don’t hear at all about someone only buying with agent 44, it’s all about the property, not the agency. I’d love to hear from anyone that has had any marketing proposals recently.
One option that I am surprised is not used more often is an auction program. To me a market that has low stock, fast turnaround and lots of buyers is a sellers market? So how can you put an accurate price on a property when the market is moving so fast? How much would someone actually be prepared to pay for it? One argument I hear is around cutting out first home buyers and people with property to sell. Ok, so your first home buyers are the ones with the smallest budget, so if thats your market, it’s not going to be a great result? If the buyer has a property to sell, surely in this market, it’s not going to be a problem? And if the buyers are out of region relocating, then they must have a bit of cash sitting there? I am convinced that auction is a better solution for MOST property in this market. Yes is different, and yes it’s scary but is very definite, you find exactly what someone is prepared to pay, and you have plenty of control over the process. I just don’t understand why more vendors don’t go this way. I thought agents love it to, as they can charge more for the option! In terms of marketing! A really slick three week campaign with RICH media will get a market excited and competing for a great property. From that comes the great result that all parties want and deserve. So come on team, lets give auctions a crack and see what results can be achieved out there! For great images and marketing content for your upcoming auction, contact ME TODAY!