Jason Andrew, director of Jason Andrew Auctioneers, said that when it comes to marketing spend, most sellers want to commit to as little as possible. And it’s understandable. After all, why would anyone want to spend money unless they absolutely have to in the current economic environment?
“[Agents will] suggest the most basic ‘bare bones’ package as the holy grail of marketing mediums; photos, signboard, internet and maybe a few small print ads,” Mr Andrew said.
Jason Andrew Auctioneers recently took a random sample of 180 auctions and split them into two categories. The first category comprised properties where the marketing campaign was less than $5,000 in total. There were a total of 125 properties in this group and the average number of groups inspecting during a five week campaign was 12.08.
The second category comprised properties where the marketing campaign was greater than $5,000. There were only 55 properties in this category, but the average number of groups inspecting during the campaign was 41.16.
Over the 180 auctions, where the marketing spend was greater than $5,000, there was 67% more traffic, and 3.5 times the average number of inspections. Greater spend, more inspections.
“We have an obligation to our vendors to obtain them premium prices, not just market value. Why should they miss out because of an agent’s inadequate skill to overcome their reluctance to marketing challenges?
Ultimately, every seller needs to have the following equation clearly demonstrated (with solid hard data) to them; more inspections equal greater levels of competition, equalling a better price.”