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  • feedback on marketing cost

    Hello I would appreciate some feedback from the public regarding marketing and advertising costs when selling your property with a real estate company.

    We run a small real estate company in Auckland and are trying to work out our new pricing method for advertising and marketing.

    In the past we didn’t charge vendors anything but a few too many people have taken advantage of our generosity so it is now no longer financially viable for us to offer free marketing.

    Our Auction/marketing pack includes:

    Trademe Listing + Super Feature
    1000 x 1500 Sign digital photo board Install / Remove
    Professional photography up to 20 shots (trademe does not allow more anyway)
    Local council Lim Report (very important to have upfront for purchasers)
    A4 200gsm gloss Open Home Fliers unlimited
    Title Search
    Documentation hosting for easy public access
    Professional Auctioneer on Site

    RRP $1800 approx.

    Because we get different rates we can do this for less than what the public would pay for the same package.

    Option 1:

    $790 upfront fee.

    Option 2:

    $450 up front and $450 once property is sold. With the condition that if the property does not sell for whatever reason or it is taken off the market you get invoiced for the remaining balance payable within 14 days.

    Why we make it $450 is because we need to factor in the amount of people out there that will screw us and not pay the balance after taking their house from the market etc.

    Also note if people already have a LIM report available we can deduct this from the cost.
    If people do not want to go to auction that is also fine but as we have an in house auctioneer we do technically not charge for the auction, so as the cost wouldn't change you may as well take advantage of our services.

    Also please note we do not charge standard real estate fees. We work on a 2% model with a minimum fee of $12k plus GST.
    This gives most vendors a saving of several thousand dollars when compared with the corporates, while still getting the same professional full real estate service.

    Thank you for your feedback.
    1
    Option 1 Pay $790 up front
    100.00%
    1
    Option 2 pay $450 up front and $450 after
    0.00%
    0
    Option 3 Somthing else. Post yoru ideas please!
    0.00%
    0

  • #2
    Hate it when RE put RRP for marketing packages - its irrelevant (at least to me) and normally over inflated.

    Why not have pay upfront reimbursed when sold? Seems pretty standard from what I have seen.

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    • #3
      Originally posted by Maccachic View Post
      Hate it when RE put RRP for marketing packages - its irrelevant (at least to me) and normally over inflated.

      Why not have pay upfront reimbursed when sold? Seems pretty standard from what I have seen.

      That is also an option we have been looking at and still considering. Because we charge considerably less fess however it may not be viable as even our suppliers have put fees up lately such as trademe.

      I do like the idea as there are many people out there who own a home but simply have no money to pay up front fees.

      The RRP on this is not inflated. That's standard rates from trademe, My Agent photography, real-estate signs nz, auctioneer costs, lim report etc. All of which you can check for yourself on their websites. Unfortunately these people do not work for free and need to also get paid in order to survive.

      It is relevant for the purposes of this post so that people can see we are not ripping them off (very much the opposite in fact) as they would not be able to match this if they tried.
      Last edited by m2 real estate; 18-02-2014, 02:25 PM.

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      • #4
        Not much difference in dollar terms so I would opt for $790 up front. If a vendor cannot find $790 then they could try saving up for a few weeks or borrowing from family. After all the alternatives from most other REAs are much more expensive. I suppose you could consider the occasional one off deal.

        Might also consider listing on Wheedle. Not many listings there yet but cheap to list till sold ($49) and can post videos as well as photos. They are advertising a fair bit. There are a few thousand vehicles listed, though, which will bring people to their site.

        Comment


        • #5
          Good point. I really wish trade me did video. I have suggested it to their property team many times but as of yet nothing. We used to do video for people as its not that much extra, but without a good platform with exposure to host it from it became somewhat pointless.

          We did use sella for a while as like wheedle it was very cheap. Problem was no one really knew what it was so we eventually dropped it.

          Comment


          • #6
            Buyers like video. If you do want video you could point people to a Wheedle link in the TradeMe ad, if TM don't object. Might be worth an experiment anyway.

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            • #7
              Youtube link would work too.

              Comment


              • #8
                Originally posted by artemis View Post
                Buyers like video. If you do want video you could point people to a Wheedle link in the TradeMe ad, if TM don't object. Might be worth an experiment anyway.
                HAHA I bet they would love that. May be worth a try.

                We did used to do video, trademe linked to youtube, but quickly found that the additional cost of the photography crew did not warrant money spent for the amount of views received for the vendor.
                Last edited by m2 real estate; 18-02-2014, 05:04 PM.

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