In Marketing a Property how much should it cost?

Barry Osborne

From one of my earlier blogs, I stated that there is an adage in Real Estate Marketing that you should be spending in the range of 1% to 2% of the value of the property in Marketing a Property.


This means that on a $700,000 house that the amount spent would be in the range of $7000 to $14,000 and you could spend all of that on just one full page advertisement in the paper and not really know whether you got anyone from it. Worse still it is just available to view for just one edition and so one occasion only to get peoples attention.


Now it is interesting that some Real Estate Agents have started to say that they will pay for all marketing. So if some Agents can do it why can’t others, you may ask? Well the reason is the ones who are asking for a marketing budget of the order of the above are probably the same agents who are committed to marketing in the press. The real issue is that it must come down to the Effectiveness of Real Estate Marketing. If you cannot measure the results of the advertising that you are doing than it is simply Throwing Money Away.


There are certain facts that we can be sure about, and they are:


  • This Market for Selling Property is not the best, it is a Buyers market
  • The value of your property has dropped from 7 to 8 years ago
  • If you bought your property about that time and now needing to sell, then you will more likely lose money.
  • If you have renovated that property than you will most likely not get back the money that you have spent
  • Once you sell, the loss is taken against your asset in the house, the mortgage stays the same, it is not reduced because the market has fallen
  • If you have taken the drop in price in selling your property than in buying you want to ensure you get a good buy

I believe a 100% of Vendors will agree that we cannot spend our$$$$$$$$ willy nilly in Marketing a Property.


Well the Internet Marketing world has come to the Vendors rescue. They have changed the ground rules in how we market and instead of the rules being about $$$$$ spent it is now all about NUMBERS.


Marketing in the Internet world is a very controlled and measured exercise. In Internet Marketing there are three stages in the Selling Process which are:


Visitor – logged onto the Website


Lead – who took an offer from the website that demonstrated they were interested


Customer – who purchased from the company


HubSpot research of their customer’s data shows that the top 50% of companies achieve the following:


1000 visitors will get 19 leads (1.9%) and from them you will receive 6 customers


Average Cost per lead is $135


Now in the case of Outbound Marketing which would include Press Advertising the data shows


Average Cost per lead is $346


This is an enormous saving of 61% in cost by changing to Inbound Marketing techniques.


But as discussed in one of my previous blogs, in marketing a Property we do not have TIME on our side to use totally Inbound Marketing techniques and so I do believe we need a combination of the old and new techniques. It is a numbers game now so we must get to as many people as possible. But we only need 1 good customer to buy, but we all know that to get the good price we need a few potential buyers competing.  


We must start thinking with our heads not with our pockets. they are bare.


We must start to try every avenue we have at our disposal to reach as many people as possible with the breaking news that we have a wonderful property, a great investment and a property that will make someone a fantastic home. We are fortunate to have so much more available to us in this modern world to be able to reach so many more people. We just have to be certain that we are using all avenues, which are:


  • Newspapers & magazines
  • Property Signage
  • Handouts, property cards
  • Agent's data base
  • Real Estate Websites, enormous number now available
  • Social Networks, there are many to consider
  • Personal Contacts
  • CREATIVE THINKING to get to more people

But next step is how do we get those people turned into LEADS, the potential serious buyers?


Well in applying Inbound Marketing strategy, we really want the potential buyers to come to us, but we want this in a way that their interest is registered on our system. This is achieved by the Individual Property Website because this is the one location where they can receive all the detailed information to make the real informed decision as to whether this particular property is the one that they are after. So how do we do that? Well, we can achieve it in a number of ways:


#1 Create an Individual Property Website

#2 Every bit of marketing you do, directs people to that website

#3 Try all avenues of marketing

However, in the case of Press advertising, go to smaller ads which are big on picture but light on information. The ad is simply there to direct people to the website to get the information.


#4 Monitor and rate all marketing efforts to ensure you are achieving the numbers

#5 Set Goals for your property marketing campaign

Example the goal to achieve is 3 potential buyers to put in offers. Working this through, means that you need about 10 strong leads and that will take about 500 visitors to your website.


So how do we do this? This will be discussed in future blogs. But for this blog, the question is "How much should we spend in marketing a property?" The answer is not in the many thousands, but more like in the hundreds and defintely no spending were you cannot monitor the results to ensure you are getting the traffic to your property.


Check this link out of a person in Melbourne who used Social media to sell his house.


So the essential feature of your campaign in Marketing a Property is creating an Individual Property Website, which has now become very easy and you can do it all for yourself and now. So create one at propertyconnect.me but collect your voucher below to save more money.

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