Advertising to Sell Your Home
Every home seller likes to be assured that their listing agent or the real estate company will run ads featuring their home. Newspaper ads could be large display ads with lots of listings or small classified ads featuring just your property. Ads may also appear in local real estate magazines and your listing will also show up on the Internet. Of course the agents and companies will run ads featuring your house, but not for the reasons you expect.
You see, the main job of advertising is not to sell your house directly. Advertising creates phone calls and some of those callers become clients of the agents answering the calls. This builds up a pool of home-buyers looking for property in general, all represented by selling agents. Multiply this by all the agents and companies who also advertise homes, and there is a large pool of home-buyers in the market at any given time – all of whom are represented by selling agents.
The agents representing those home-buyers know about your home because it is listed in the Multiple Listing Service and has been on office and broker preview.
The agents match up their clients with available homes, one of which may be yours. Then they show the homes to their clients, who eventually may make an offer on one. That is how your house gets sold. Ads create a pool of clients, one of whom buys your home. Ads do not usually sell your house directly.
As mentioned previously, advertising your home in newspapers and magazines rarely sells your home directly. More likely than not, the buyer who eventually purchases your home will have called on a totally different house.
You should also realize that when a company advertises the homes they have for sale, there is more than one objective. Sure, the real estate office wants to generate phone calls and sell houses, but the advertising also shows home sellers how effectively they market properties. This impresses not only you, but others who may be thinking of selling their home.
The advertising brings in more listings, which generate more ad calls, which produces more buyers…and that is how real estate advertising really works.
Individual agents may advertise your home for the same reasons as companies do. They usually advertise in classified ads or in specialty magazines featuring houses available for sale.
As in other types of advertising, these ads rarely sell your home. Once again, the main goals of advertising are to accumulate home-buyers as clients, and to impress you and future home sellers with how well they market their listings. Some agents actually do sell their own listings, but not that often.
It is much more productive and beneficial if your listing agent directs most of his or her marketing efforts toward other agents. Since this is "behind the scenes" marketing that you don’t actually see, it is often difficult for you to measure how hard the agent is working for you.
It is a mistake to measure your agent’s effectiveness solely by counting the number of newspaper and magazine ads featuring your property.
When you first list your home many agents send "announcements" to all of the other houses in your neighborhood. This can be done in the form of postcards, a letter, or flyers left hanging on the front door. These are important because your neighbors might have friends who are looking to buy a house. These announcements create "word of mouth" advertising, which is the best kind.
An open house when your property is first placed on the market can be very important, but not for the reasons most homeowners think. Just like with advertising, most visitors to open houses rarely buy the house they come to look at. They may not even know the price of your home when they stop by to visit – they probably just followed an "Open House" sign to your door.
An open house performs a similar function to the neighborhood announcements – it lets all of your neighbors know that your house is for sale, and it practically invites them to come "take a look." Being generally nosy, a lot of your neighbors will take advantage of the invitation.
And they may tell their friends about your house, creating more "word of mouth" advertising.
Of course, there are other reasons for holding open houses, too. Listing agents who "farm" a particular neighborhood use them as an opportunity to meet with other local homeowners who will someday be selling their home. Your agent may hope to list their homes in the future.