In the past decade, internet advertising costs have skyrocketed. Just like the old days of print, agents are asking their vendors to spend big money upfront in the name of finding a buyer.
The recently released best selling book Inside Real Estate blows the lid on agents’ selling tactics. Strategies used to convince home sellers to needlessly spend thousands on advertising can cost the unsuspecting consumer thousands in fees.
The book cautions home sellers against the ‘tired cliches’ used to sell newspaper ads which are now being used to sell expensive internet campaigns. ‘Bigger photos means more buyers’ and ‘you can’t sell a secret’ are being used to talk owners into wasting precious money that essentially promotes the agents brand.
Inside Real Estate outlines the path a typical buyer will take during their search. At no stage of their search is the buyer influenced or impacted by secondary issues such as the size of the ad or the website they are viewing the property on.
As website costs have consistently risen by more than 10% annually, agents are intent on passing these costs onto the consumer. Some agents will benefit from a rebate (kickback) if they are able to convince the home seller to pay above the cost price.
There is a detailed explanation on how agents use expensive advertising campaigns to motivate unmotivated vendors. The author Peter O’Malley is a real estate agent that has been studying selling tactics for over 20 years. He writes ‘The sunk cost syndrome allows agents to sell unmotivated vendors a poison pill in the form of increased exposure. Once the vendor swallows that pill in the form of increased exposure (and expenses) they have unwittingly increased their motivation to sell tenfold’.
There are many strong points in the book that will ensure you either make or save at least $30,000 the next time you transact.
To receive your free copy, call us on 9840 7700 or email us sales@hudsonbond.com.au.
