Listing budget

Yes, I do have a budget. I advertise differently than the "typical agent" in our area, Ventura County. My system of advertising works however, some clients want me to change it and do the typical advertising which messes up my budgeting.

I never discuss or think about what I am going to spend. its all in the time and ideas you have to sell the home. I never advertise in the paper. 23% of my income goes to cover expenses. I go over with the seller the effective things that will help sell his house. Open houses, flyers, blogs, website presence, good photos, correct pricing, staging for success, things to do to get ready, brokers opens, internet exposure, how to show properly, back up paperwork like Insurance cost, flood is a must in New Orleans. focus on how they can help you get the house sold. this makes them an active partner. List of recent renovations and cost. Many times I do a separate flyer for updates. Each listing gets a separate page on my ranked website. Multiple photos on realtor.com. These things can be priceless.

We have an established budget for our listings however, there is a couple of catagories.  My first thought is that for all of the listers they do not need a budget because their MLS dues include online advertising within their MLS and most likely on Realtor.com.  Those who practice the 3P's of real estate marketing feel this is all they want to spend on marketing.  The 3P's = Place the listing in the MLS,  Place a sign in the ground if allowed, and then go home and Pray that a Buyer's rep will find a buyer for their listing.

Without going into tons of detail here, we have an established buget for our homes under $499K, a budget for homes between $500 & $999.  Another budget for our home over $1M and yes they do cost a lot more to market.

This allows us to make a sound business decision on what direction we need to take with a particular listing.

Jeff Daley

Well, actually, I never thought of having a budget for my listings.  I guess I just assume I need to do whatever it takes to get the house sold.  There are things I don't do because I don't feel they're effective - but the basics; sign, flyers, video pages, website...I do it because I feel that is my job.  I'd like more feedback as well.

I don't really have an established budgeting system for each listing.  They all get my full attention and whatever it takes to produces results but since all sellers do not have the same motivation I cannot justify the same expenses.  We do have a company provided "LIST" of items we do but I never use it.

Ours depends on the type of property and the type of sale.  All auctions have very detailed budgets.  For our investor type properties, I advertise all of them together.  The typical buyer likes to see 'our list".  Due to this, the budget is global and not property specific.

Great post and comments!  I do think it's important to have  a budget so when you list a home you have a good idea of your profitability will be........I like the tiered idea! 

I may not be the most organized business owner. I do have a budget, but I have never put that in writing. Your blog inspired me to do that.