The bestselling McDonald’s burger of all time is the Big Mac. But did you know that it consistently ranks poorly in taste tests? So, how is it that this burger is still their best seller? One word, marketing! The Big Mac has been McDonalds most heavily marketed burger over the years. Translating this to property (or any other product really), should we invest in a strong marketing campaign, or should we just do the basics and believe that property sells itself?
Some real estate agents are quick to offer or recommend cheap marketing just to win a listing, and while the market could be ‘hot’ like it is right now, making a sale is easy, right? Sure, it’s easier, but this is a relative concept. There are always varying levels of performance and results in any market conditions. Cheaper marketing will generally cost you more in the long run when you look at your net result after the sale.
If the goal is to sell for the best possible price, investing in marketing, and knowing how to optimise this investment, is crucial. Let’s look at another example. When you walk into a Rolex Watch store you will find a very curated and carefully designed store which sets the scene for the Rolex buying experience. On arrival, drinks are offered and then you are taken to a private room where there is an array of inspiring marketing material that tells their brand story and further enhances the experience. All of this for an item that may cost $5k -$50k.
Now let’s look at a house. A house might cost $500k to $2m (or even more) and will more than likely be the single most expensive item we ever sell or buy in our lifetime. So, why would we consider skimping on the marketing of it? If I want the best price I can possibly get, then I need to invest in making my property look as appealing as it possible can. This starts with presentation which is why we generally recommend getting the property professionally styled, to ensure it is presented at its absolute best. Then we get to your marketing assets – photography, videography, brochures, flyers letters, floor plans and all other visual elements – should be of the highest quality. First impressions have been scientifically studied so we know they last longer than all other impressions to follow. There is a reason we say first impressions last!
Once these marketing assets have been perfected, it’s time to put them in front of as many buyers as possible. A good agent will know the local market and should be able to provide a buyer target market. Knowing the buyer profiles, their different buying personas and via which marketing mediums they might be looking for property, provides the foundation of a well targeted and highly optimised marketing campaign. Your campaign should be tailored for maximum reach and appeal to the widest range of buyers as possible. This is what will draw more buyers to your home opens. You see, selling property well is a bit like a numbers game; the more exposure and enquiry you get, leads to more interested buyers, which means more competition, and competition is what will ultimately drive your price up. This puts your agent in the best position to negotiate best possible price for you.
This is why when considering what to spend on marketing, it should be viewed as a valuable investment the success of your sale. It’s not about just finding an active buyer, that part can be easy. It’s about making sure your home appeals to a wide target market and being sure that your campaign reaches all of them, whether they are looking for property right now or not. The more the merrier as they say.
Read our case study on how we turned a $4,000 marketing investment into a $50,000 profit for one of our clients here.
Watch James Priestly’s vlog on marketing investment below:
