“Spend less and earn more” had been the axiom of any person who forays into the market of real estate. Sellers always look for realtors, who demand lesser fees and get their properties sold in the fastest time possible. Most of the realtors are pretty successful in achieving the objectives of their clients. This earns them decent fees according the percentage agreed beforehand.
Recently, a survey was conducted to establish the best realtors in the Down Under region. The various methods used by these realtors were thoroughly researched in order to identify their \"secrets of the trade\". The conducted researched yielded some results which challenged the previously mentioned axiom at every step.
The studies revealed that these realtors asked their sellers to foot the advertising bill of the transaction. Traditionally, these bills were paid by the realtor from the fees he gains from the property. These expenditures absorb a major part of the agent fees, which left the realtor with considerably lesser income.
The research indicated “Higher the fee a Seller pays for the advertising, greater the final selling prices of the properties”. In simple words, if a seller invests more money in advertising, the sellers find a substantial increase in their profits.
A realtor is able to move property with seller sponsored advertising in considerably lesser time than a property which is advertised by the realtor itself. These realtors had mastered the knack of producing beautiful media campaigns that tend to grab the interest of a buyer. They seem to have taken the “If you are good at something, never do it for free\" advice given by Joker (of Batman’s fame) to heart.
These realtors offer their special services of advertising, provided the sellers agree to bear the advertising costs. These services are especially viable in desperate scenarios, where the seller needs to quickly dispose his assets, in order to use the cash inflow for their urgent needs.
The cost of advertising looks trivial when compared to the increase in the property prices. For example, an ad campaign that costs $2500 can fetch the seller (and the realtor) an increase of approximately $10000. This leads to better returns to the seller as well as the realtor.
However, there is a catch to this scenario. These additional fees should be demanded by the realtor only if they believe that a better ad campaign will positively impact the sale. A realtor can abstain from asking additional funds if they feel that it wouldn’t make much impact on the property sale.
Till date, there are no such precedent set in the North American market. However, a time may come when the realtors might take up the idea if the sellers start putting their trust in the practice. If a customer believes that spending a couple of thousand dollars will give him a tenfold return, he will make room for the bill in his expense sheet.
It is better that one is ready to adapt to such a change beforehand rather than shelving the idea and play catch up later. As this particular method helps in a substantial increase in the income of a realtor, it won’t be long before one finds this practice implemented in the Canadian market.