Tips for Calculating Home Selling Advertising Costs

Selling a home effectively comes with a cost. Among the expenses you should create a budget for are the expenses for marketing and advertising. The type of advertising campaign you create will affect the success of your home sale, so make sure to use as many channels as possible.Most real estate agents include in their fees the cost of the advertising campaign. When choosing a real estate agent, ask about the advertising and marketing fees as well as the type of strategies the agent plans to implement to sell your home. The advertising methods you may need to pay for include listings in magazines, listings in newspapers, listings online, flyers and brochures, and signage outside your home.For marketing and advertising, expect to pay somewhere between 0.5 to 1% of the total value of your home. This may be a large amount but paying this amount to create the right advertising campaign can attract the right kinds of home buyers.Advertising and marketing can increase the number of people who will be aware of your home sale, yet it is also possible that all those people are not interested or qualified to buy your home. While this is true, it is better compared to no one knowing about your property’s sale.Tips for Calculating Advertising Costs1. Determine Advertising Campaign Layout. Prior to learning about the fees, ask your real estate agent to present an overview of the advertising campaign to be used. The overview should include the plan and the time frame.2. Discuss About Advertising Budget. The costs for advertising are not a set fee. Usually, you can negotiate about the costs with your agent. Both you and your agent can decide on a budget for advertising. Although, the payment for the advertising comes out from the agent’s pockets, you will need to reimburse the money spent. You can ask your agent to itemize the costs in a written format and all outgoing expenses should be approved before implemented.3. Determine how and when the money will be used. Unless specified in the agreement, do not give your agent the budget for advertising upfront. You will want to store this money in a trust account.Depending on the agreement, the advertising expenses can be included in the agent’s commission fee and the commission will only be paid if your home is successfully sold.4. Mostly, you will need to pay for the advertising and marketing expenses whether your home sells or not. As this is mostly the case, you may want to negotiate for a no sale, no fee agreement before signing any contracts.Understand that the goal of an advertising campaign is to present and sell your home. An agent who can come up with a successful marketing campaign can attract the right buyers in a shortest time possible.These are just a few tips to give you an idea on the fees you can negotiate for. The money spent on a good marketing campaign will be worth it. However, you need to take into consideration that there are several effective advertising methods that costs very little.Your main goal is to identify fees associated with selling your house that will give you the most value for your money. When evaluating an advertising campaign, determine if the plan will allow you to get a large return from the money spent on it, know if you can get a higher purchase price as a result or sell your home quicker, and determine if the campaign will allow your property to be exposed to the right buyers.

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