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Top 10 Worst Things Realtors Spend Money On

By Patrick Harfst

Real Estate Agent with Realty Executives - Phoenix AZ

October 12, 2007 05:56 PM

10. Shopping cart advertising. Who ever renews these contracts?

9. Muerta del toro lead generators. Again, who continues with these guys?

8. Glamour shot photography. The word is out on this... Time to stop!

7. SEO "guaranteed placement" claims. We can't ALL be in the first position!

6. Image advertising that is "all about the agent"... Consumers could care less.

5. e-mailing flier services - poor use of advertising dollars - looks like spam

4. High pressure sales seminars - where you can learn to Always Be Closing.

3. Meals with other Realtors - why not take a client out?

2. Newspaper advertising - worked in the 70's & 80's... past tense.

And the #1 Thing that Realtors Waste Money On is:

1. Over-priced listings. Nothing bleeds money faster. Career killers.

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Patrick Harfst

Realty Executives - Phoenix AZ - Gilbert, AZ

Rob - I will do as you asked... Top 10 Ways for Smart Realtors To Spend Money... coming soon

Oct 13, 2007 04:50 PM

Rich Quigley

Chicago, IL

Patrick,

Nice concise post. I think we have all done some of these. At my local supermarket, it is easy to pick up a shopping cart with ads for three different Realtors. I actually find seminars to be pretty painful, typically sounding like a revival session. I can be faulted, however, for taking an occassional overpriced listing. Especially in this market it is not good.

I'll be looking forward to your post of the best places to spend money.

Oct 14, 2007 03:20 AM

Tamara Inzunza

Realty One Group Capital - Alexandria, VA

Close-In Alexandria and Arlington Living

#2 is definitely #1 for the average agent. HOWEVER...there are ways to place highly targeted stealth ads in targeted areas of the newspaper. But for the generic ads in the real estate section and open house section, definitely a waste.

Oct 16, 2007 01:19 AM

Tom Plant

WINEormous.com - Murrieta, CA

Patrick - Good list. The only thing I would dispute is meals with other REALTORS. I think it's a good opportunity to share successes and failures. Thanks.

Oct 16, 2007 02:17 AM

Anthony Todd

Coldwell Banker - San Jose, CA

Amelio, (Silicon Valley) GRI, CRS, ABR..

Very good Patrick! I would add #11, "Property" magazines.

Looking forward to the 10 best things to spend money on.

Oct 16, 2007 02:43 AM

Goomzee Corporation

Goomzee Corporation - Missoula, MT

www.goomzee.com

Good post, Patrick! I particularly enjoyed the glamour shots as well. When you are trying to "brand yourself" using a picture that looks nothing like you isn't going to get you recognized in public. I've gotten a few cards from Realtors where I have had to take a triple take and finally realized that they have used the same picture since they started their career in 1981 (it's the poofy bangs that gives it away!) Thanks for sharing!!

Oct 16, 2007 03:45 AM

Beth Young

Holler Law Firm - Milford, CT

Been there, Done that...

Boy are you ever right about over priced listings! How about #11: paper!!!

Oct 16, 2007 02:33 PM

Jim Crawford

Long & Foster - Fredericksburg, VA

Jim Crawford Broker Associate Fredericksburg VA

I agree wiht all of your choices! Great post!

Oct 16, 2007 04:00 PM

Patrick Harfst

Realty Executives - Phoenix AZ - Gilbert, AZ

Tom - My point about meals with other agents is that this becomes a social hour... 3 or 4 times per week. That is what should be reduced in favor of an occasional meal with a client - past / future does not matter.

Brenda - I tried to avoid naming names, per se, but you are right. HH feeds off of the ego that comes with the profession. I actually had a HH brochure back in about 1990, but I was only out $500 for the design, and another $500 for the printing, done locally. They charge a bit more than that now...

Jim - I am honored to have your blessing on all 10 of these... There were more, for sure, but I needed to avoid being too specific about money wasters... For example, think of electronic devices used in conjunction with listings, that are only for people in cars with radios... Anyone out walking the area is not going to get the full effect...

Oct 16, 2007 04:13 PM

Susan Neal

RE/MAX Gold, Fair Oaks - Fair Oaks, CA

Fair Oaks CA & Sacramento Area Real Estate Broker

As for #2, if you advertise in a major newspaper covering a metropolitan area, you will ikely spend a lot on your ads and not get much of a result, but many areas have neighborhood newspapers and free papers where the ads are extremely inexpensive and much more effective. Especially if the paper is one that is interesting enough about local issues that people do read it!

In all of the open houses I have held, I have had only a couple of people come in from an ad in our large daily newspaper, but I have had several who came after seeing an ad in the Sacramento Union, a smaller weekly paper that deals almost exclusively with local and neighborhood news.

Still, however, most people come from Craigs List, my hand-delivered, personally emailed or snail mailed flyers or just following the signs I put out. I've also worked out an arrangement with our weekly paper to get 100 copies which I then distribute with my listing and open house flyers inside. This is a reversion to old-fashioned farming, giving people value (the paper) while getting my name and properties seen. I am getting lots of positive feedback from that.

As for the glamour shots and antique photos, nothing brings more smirks and unkind remarks from other agents, unfortunately. They simply do not enhance the image like they are apparently intended to do. Another photo that bothers me (although it is popular) is the arms folded stare. Looks intimidating rather than friendly. Probably just my own issue, since most people don't seem to feel that way.

Great list, Patrick!

Oct 17, 2007 06:54 AM

Patrick Harfst

Realty Executives - Phoenix AZ - Gilbert, AZ

Susan - You are SO right about the arms folded stare/glare. Read any book on body language, and this shows up as a not-so-friendly pose. Just what enlightened Realtors need! An I-don't-trust-you pose...

And yes, the smaller the paper, the better response the ad will generate. Take that all the way down to a self-published paper or newsletter. Direct the content towards a target group, and watch the response rate go up, up, up! Quality or quantity - we each get to choose.

Oct 17, 2007 07:06 AM

Gerry Banister

RE/MAX Showcase Homes - Beverly Hills, MI

MBA

RIght on about the newsaper and the overpriced listings. There will always be someone out there who will take that listing, let them, just tell the sellers to call you back when that listing expires. That works for me--just did , again, this week.

Oct 17, 2007 09:18 AM

Steve Loper

Steve Loper - Orlando, FL

LOL Great post. And all true. Glamour shot photos are the worst. I am a pretty handsome guy, but customers don't want to see anyone dolled up with a hat on.

Oct 18, 2007 03:08 AM

Bill Gassett

RE/MAX Executive Realty - Hopkinton, MA

Metrowest Massachusetts Real Estate

Patrick - you forgot about open houses which are a big waste of time and time is money :)

Oct 18, 2007 10:32 AM

Joe Janus

Realty Executives - Phoenix, AZ

Phoenix AZ Real Estate

Great post Patrick! I hope new agents see your post before they plunk down a chunk of change on some of this stuff. I've made my mistakes but if my experiences can help some else...all the better.

Now I've got to run and practice my poses for my new shot. Perhaps arms folded and chin resting on right hand or better yet my high school graduation pic with piano keyboard tie...! LOL

Oct 19, 2007 02:07 AM

Esko Kiuru

Bethesda, MD

Patrick,

Your list is pretty good and to the point. Many of them are eye-openers for mortgage lenders, too. Newspaper advertising and lead generators get you nowhere today. How about all these sales seminars originators go year after year at a great expense.

Oct 19, 2007 05:56 AM

Linda Reynolds

Bradenton Real Estate - Linda Reynolds - Bradenton, FL

Bradenton Real Estate

Very good points, and they are very true.

Oct 21, 2007 12:39 PM

Pedro Gonzalez

ADT-Millennium Alarms Systems - Pico Rivera, CA

Home Security Systems- ADT authorized dealer.

So true! I wish I would have read this many many thousands of dollars wasted ago!

Jun 12, 2008 04:35 PM

Jeff Thornton

Jeff Thornton ABR CRB CRS CSP e-Pro GRI - Lansing, MI

ABR CRB CRS CSP e-Pro GRI

I came across this list today at a managers meeting and i thought it was pretty interesting. I was going to write a post on it when it dawned on me that I probably couldn't do that. Nobody knew where it came from so I decided to search the AR blogs. It goes to show how sometimes things can take on a life of their own. I really enjoyed your post.

Jun 24, 2008 09:00 AM

Paul Gapski

Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA

619-504-8999,#1 Resource SD Relo

thank you very much for the informative and interesting post. I get so much out of the active rain network.

May 01, 2012 03:21 PM