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5 Comments

  1. Brian Taylor
    November 9, 2022 @ 9:55 am

    Very good advice. Especially as I intend to sell our place in the not-to-distant future.

    Reply

  2. Glen Mason
    November 9, 2022 @ 1:31 pm

    Yes, Yes and Yes. Agree with it all Neil.
    I recently sold my (not settled yet but looking good) sister farm in a regional location in WA. We did it through a For Sale By Owner set up which was our only advertising cost to get it on the internet. In our case I feel thats completely necessary as we are not agents with built up leads or leads from other properties coming into us.

    That cost was around $1100 which included a large 6×4 full colour photo For Sale board erected on the property in the regional location. It take us 9 months to get the right offer but we expected it could take some time due the property and the reduced market that it applies to.

    Local agents put a price of $875-$915,000 on the property and wanted an average of 2.75% and yes additional advertising costs were mentioned although no figure was given at the time.

    At this stage we have achieved a sales price of $1,025,000 (obviously we have to wait to settlement as the sale was a subject sale but that property sold within a week and we are just waiting on the buyer of that property for their finance approval). We achieved that without any additional advertising costs, no pressure from an agent to reduce the price. Only had home opens when we had qualified buyers to look through, so effectively by appointment. However on a few occasions if we had 2 or more parties planned to come through on a weekend we would advertise on the website that it was open on that day but without a time so people would still have to ring and be qualified.

    If we had sold through one of the local agents, to come out with the same money in the hand we would have to sell for
    $1,025,000 plus commission $28,984 plus advertising costs, say $2,500 min

    That means a total of $1,056,484 less our cost of $1,100 = $1,055,384 but they thought it worth a max of $915,000.

    Love that experience of yours on the plane !!

    Reply

  3. Glen Mason
    November 9, 2022 @ 1:46 pm

    Uh I forgot to mention, I would love to know the response of these Top Performers in Real Estate if Sellers said we will pay the advertising costs but only if you remove your name and picture from the ad as we are only paying to advertise our house and you can pay for your own advertising if that is what you want. Your name and phone number on the sign or ad in an appropriate position and size but that’s it.

    I also would like these Top Performers, there is one in particular that works in the area I live, how can you justify the commission you charge when you have so many listings to look after, there is now way you can be putting the justified amount of energy and effort into selling each one of your listings every week/month, unless you are just relying on the website listing to do your work for you in which case why so much commission.

    Like I have said before I don’t necessarily have a problem with high commissions providing the client is getting a total and premium service and the outcome they want or better. BUT to be charged a high commission to be on a Top Performers book so you can just be another number is crazy.

    Thx for the article.

    Reply

  4. Sebastian Phoenix
    November 9, 2022 @ 1:57 pm

    Advertising money is a scam, do why would you still advocate not paying advertising money until a home is sold rather than ablanket NO to advertising money?

    Reply

  5. Adriane
    November 9, 2022 @ 6:19 pm

    I do not understand why advertising costs are justified, either before or after a sale. It is a business expense like renting, heating, transport.

    Reply

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