Why do I need to pay for marketing?

You want the best price from your property and you want to be able to look back at this transaction and know you achieved the right result from the market. More marketing means more buyers, therefore more competition and therefore a better price. Around 70% of the buyers in a market place come from the same postcode or and adjoining postcode. 30% of the buyers therefore come from out of the area.

How will your agent reach local buyers? how will they target out of area buyers? This 30% chance your home will sell to someone who doesn’t know your area or home cannot be overlooked as this buyer may come from a different market place or might be thinking a more expensive suburb but happy to pay more for your home as it has everything they want. You want the certainty that when you take an offer on your property, you know that your property has been exposed to every single potential buyer and you can take that offer with confidence that there are no other buyers/offers.

The reason you are now charged for marketing and not 10 years ago is mainly due to the increase in cost to sell properties. Major websites are now charging agents significantly to be online and combined with increased costs in print media and other forms, the agents can no longer cover this much expenditure. As agents we also have not control of your personal circumstances. Our time and energy are free till we get a sale. Should we spend $1000 marketing your property and you change your mind or have a change in circumstances and withdraw your property from the market, we are left with a bill for doing our best for you but the change for you leaves us with a bill. There are little or no agents who can afford to do this on a regular basis. Most businesses in your area, even large ones franchises like Ray White are all privately owned small businesses generally operated by people living in your area.

The cost of advertising could be anywhere between $500 for a basic internet campaign up to $5000 or more for mulit million dollar properties. Agents are not allowed to make money from VPA (vendor paid advertising) so you will be invoiced exactly according to what has been spent. The amount you agree on in your selling agreement is the max that can be charged. If your home is sold without any marketing, you should not have to pay a fee. Should the agent spend $2500 but you only agreed for $1500, this is all you will be charged.