What is your average marketing budget per listing?

MATTHEW SLUTSKY

Senior Buzzer

2299

171

What is your average marketing budget per listing?

How much do Realtors spend on advertising for a home??

Do you have any averages? What does the money go towards?

Thanks.

17

Resale Discussions

JAMIE KINCH

Buzzer

142

41

1 BEST REPLY

@Brian Persaud I'd say the branding/marketing dollars spent on self promotion don't count. Reason being is that those dollars primary purpose is to solicit more business for yourself (not you personally, but in general).

@Matthew Slutsky I think is looking for the dollar amount that is spent on an individual property. Those costs like @Josie Sternmentioned would include (for a specific property) the cost of floor plans, postcards promoting that specific property, updating your website with specific information about a single property, newspaper advertising for that specific property listing, social media, photography, video tours,

I wouldn't count the administration charges of listing, brokerage fees, professional fees, desk fees, car payments, insurance, business cards or any other general business expense to be related to listing a property for sale. Those are more general and administrative in nature. Those support the job of selling property but aren't directly related to promoting an individual property.

Some of the usual marketing tools might include:

- Feature Sheets and brochures $150-300 (depending on quantity)
- "Just Listed" postcards $100-300
- Website update $0-100
- Social Media promotion $FREE (or very close to free)
- portion of a print advertisement w/ current listings $varies
- Photographer $0-500 (this depends on the property and how it is marketed)
- Video Tour $200-300
- Staging the property $50-200+ (I know some Realtors pay for an hour consultation)
- Cookies/Coffee/Something to make the home smell great $10-15

BRIAN PERSAUD

BabbleBee

280

17

most realtors spend dollars on marketing themselves vs actual homes...do those dollars count?

JOSIE STERN

Buzzer

109

57

Different realtors perform different marketing activities. We spend on professional photography, feature brochures, newspaper advertising, floor plans, postcard quality flyers, website maintenance of our listings. Then there are fixed costs such as staff to service the administration of the listing, brokerage fees, professional fees, rent fees, desk fees etc.etc. etc.

JOSIE STERN

Buzzer

109

57

1

@Jamie K. You are off with the cost for flyer distribution. The cost is usually upwards of $1,300 to $2,000 for printing and delivery for the quantity we send out. Website update is also much higher at $80 per hour. I don't even count flowers and cookies and "something to make the home smell nice." Really the cost could be anywhere from a few hundred dollars for agents that perform minimal marketing to about $2,500 to $3,000 to fully expose and market a listing professionally.

JAMIE KINCH

Buzzer

142

41

@Josie Stern oops! meant to put at the bottom that costs vary!

I can easily see how the cost could be $1,300+. Out of curiosity do you have a card template that you use that is branded to your business? or do you pay for full design each time? Also how many do you send out? I'd thrown $300 out based on $120 for 1000 postcards using a template that is already made and $0.09 a flyer for delivery via flyer distribution. Mail delivery would obviously increase the cost quickly.

Also I know from experience (coming from an IT background) that the cost to update a website definitely varies. I myself am able to update a website myself without having to pay someone in about 30-45 minutes (not including the time it takes to write copy). The cost to update is definitely one that can vary. You are very correct that it can be $80/hr (I've even seen $120/hr) to update a website. It all depends on how the website is getting updated. I personally couldn't imagine paying someone $80/hr to update a website today. With a solid CMS (Content Management System) website it is the equivalent of paying someone to do data entry.

I think you are spot on though that the overall budget ranges from a couple hundred dollars to $3,000+. Like I say you don't market a Ferrari like a Hyundai.

MATTHEW SLUTSKY

Senior Buzzer

2299

171

@Brian Persaud ...does spending marketing dollars on yourself help the seller, or just getting you more clients?

JOSIE STERN

Buzzer

109

57

To answer your questions @Jamie K.

1. We distribute many thousands of flyers regularly because we list many properties.
2. I maintain our Wordpress website because I too have a technical background and it is more timely. But there are things that go wrong and things I can't do.
3. I usually use a template for one side of the flyer and change the other side to whatever property we are marketing.

When are you getting your real estate license anyway @Jamie K.?

JAMIE KINCH

Buzzer

142

41

Thanks @Josie Stern for the feedback and asking about when I'm jumping into real estate!

How many flyers would you say you distribute for a single property? Totally understand that you may not know this number off the top of your head, as the flyers may start to blur together :)

Glad to hear that you maintain a Wordpress site. It's a great platform and once people get to know it, the process of updating becomes a breeze! Though you are totally right when things go wrong you need someone to call on! luckily I have quite a few friends in the design field that I'm very close with so I usually get preferential rates to fix what I've accidentally broken!

In terms of my real estate license I'm aiming for middle of May for the pre-registration segment, with the other (critical knowledge courses!) shortly after that. I'm slightly constrained by my final semester of classes, so that explains why it won't be until April-May. This doesn't impact Course 1 and 2, but I definitely want the in-class experience for the knowledge and insight for course 3 and I can't pull all day classes through OREA and maintain my high GPA at school.

JOSIE STERN

Buzzer

109

57

@Jamie K. Let's just say we send out in the thousands. It sounds like you love real estate and you will do very well if you're passionate about it. Lots of luck with everything.

JAMIE KINCH

Buzzer

142

41

Thanks @Josie Stern! Fair enough with the flyers!

Real estate is definitely a passion (some friends and family would say a "lifestyle") for me. The real estate market when you really dig deep into it is a very interesting industry to follow and be involved in.

Best of luck to you as and your continued success, Here's to hoping we can do some deals together in the future.

MATTHEW SLUTSKY

Senior Buzzer

2299

171

So..... do we have an average number on how much Realtors spend per listing?

JAMIE KINCH

Buzzer

142

41

OutburstAdvertising.com puts the ad-to-sale ratio at about 3.4% in 2011 for real estate agents and managers. Thoughts?

JOSIE STERN

Buzzer

109

57

I could not venture a guess on the average cost. It really all depends on the calibre and depth of the marketing plan. Some are of high calibre and produce high quality marketing materials and others are not. To market a property well, in order to get top dollar, will require mass exposure and this will cost in the thousands of dollars to do properly.

JAMIE KINCH

Buzzer

142

41

I think it also really depends on the type of property and where your buyers are located. How you market a $199,000 condo in Barrie,ON is going to be different than the $5 million custom built home in Forest Hill. Your potential buyers could be international and therefore how and where you market is different. Are you appealing to investors? First-time home buyers? Retirees? This all changes how and where you market a property.

JOSIE STERN

Buzzer

109

57

That's all true which is why it's not easy to come up with an average cost. I can only comment on the market that I'm familiar with.

MARGARET PELC

NewBee

4

1

I used to spend a fortune on marketing. I also kept records to see what things worked and which things did not work. I now keep my marketing to the very basics. I will do property flyers if my client requires it, but I do them myself to help contain cost. I will advertise in the local Real Estate Book which can run anywhere from $75 to $400 depending on the size ad I do. Then of course there is the MLS and a variety of online resources, most of which are free or the fee is minimal. I had marketed myself and properties with companies that promised the sky and lots of returns, but after thousands of dollars and no results, I have educated myself on networking with other real estate professionals, I use lots and lots of social media and I keep up to date with newer tools that don't cost an arm and a leg.

ELIZABETH SAGARMINAGA

Buzzer

84

9

1

I agree with @Margaret Pelc. In today's world, where everybody is connected by social media, what you need is a presence and an interactive blog on your website which would provide information on properties available for sale, their USP's, the asking price etc. The site should also provide general information on real estate including information on mortgages. Again spending would be specific to a site. It would vary with the type of property, the neighbourhood, the asking price, the general market conditions, whether the target audience is first-time buyers, whether this would be a second-home property or the like.

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