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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 homebuyers 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 homebuyers
in the market at any given time – all of whom are
represented by selling agents.
The agents representing
those homebuyers know about your home because it is
listed in the Multiple Listing Service, has been on
office and broker preview, and because your agent may
have also sent flyers to all the local real estate
offices.
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 make an offer on one. That is how your
house gets sold. Ads create a pool of clients, one of
which buys your home. Ads do not usually sell your house
directly. |
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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. The same thing
happens with buyers who call on your house. They will
probably buy something else.
You still want to be
certain the real estate company selling your house runs
ads in the local and major newspapers, whether they
feature your house or not. The ads generate phone calls
to the real estate office, and if those agents viewed
your house on the office preview, they will be familiar
with it. This is how your property is sold.
Or you could be one of
the lucky ones – someone calling on your house may
actually end up buying it.
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. |
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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
homebuyers 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. |
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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.
The announcements create
"word of mouth" advertising, which is the best
kind. |
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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.
Open houses held after
your home has been on the market awhile do not usually
serve a useful purpose in selling your home. Most of the
neighbors already know your house is for sale and open
house visitors rarely buy the homes they visit.
However, if you really
want more open houses, your listing agent may allow
other agents to hold it open. Open houses attract
prospective homebuyers and agents hope to convince some
of those homebuyers to become their clients. |
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