Promoted by ListReady.
The change of tide for the property markets in major Australian cities has begun and with the interest rate adjustment to a record low, buyers are emerging and sellers can expect fair outcomes. Sellers scepticism about the success of selling their house and investing in marketing campaigns has resulted in slower decisions to list than before.
Vendor-paid advertising (VPA) has been a hard sell and made harder with the housing market slump, with vendors fearful that investing in marketing will leave them out of pocket if their property doesn’t sell.
There’s new innovation in VPA, ListReady which is a major benefit for the industry. Agents secure vendor-paid advertising, with ListReady covering up to $25,000 in vendor advertising costs, payable by the vendor when the property sells. It’s a win for both the agent and vendor, as the agent gets paid upfront in full and the vendor doesn’t need to worry about paying anything until settlement.
No matter the market condition, VPA is essential to achieving the best sale outcome. If you’re struggling to secure VPA, here’s three key things you need to do to make your clients feel confident with their marketing investment.
It’s an investment – one of the best you’ll make
Many vendors are reluctant to pay a large sum of money upfront because they don’t actually know what VPA is. The first step to securing VPA is educating your clients on the benefits of marketing their property: maximum exposure, quality buyers, competitive offers and ultimately the best possible sale price. Position it as an investment rather than a cost and provide hard stats to give them confidence that investing in marketing will pay off. With the housing market downturn everyone else is opting out of marketing, so having it will give you the upper hand in a market where buyers are scarce and help you sell faster and for a better price.
Investment commitments are sometimes better made with a third party. The agent is seeking the best outcome for the buyer, and sometimes cash paid upfront can get in the way of seeing that when the house takes a bit longer to sell. Keep trust and separate the money from the relationship.
Provide a detailed marketing plan tailored to their property and explain how each item will add value to the final sale price – which is what vendors ultimately care about.
Client success stories are also powerful tools to help build trust and substantiate the value of VPA for the vendor. Show your client comparable properties and walk them through the marketing campaign that was used to achieve the sale outcome.
Give them a payment option that takes the hurdle out of the sale process
One of the major pain points when it comes to VPA is the fact that vendors need to pay a large sum upfront with no guaranteed outcome. ListReady is the latest phenomenon that allows vendors to postpone their property advertising costs until settlement. This means vendors can list their property straight away without worrying about having to fork out thousands of dollars on the spot while agents get paid upfront by ListReady. It’s entirely online, free for agents and takes less than 60 seconds to complete. With ListReady, VPA is an easy sell.