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Does "Days On Market" Change The Tools You Use To Market A Property?

Price Reduced Rider I was speaking with a REALTOR® friend the other day and she mentioned that the average DOM had risen substantially in her county-- as it has in most counties. With fewer buyers out there ready and able to transact and with sellers not yet reacting quickly enough to the new pricing realities of a "buyer's market" homes are languishing. Emmitt Smith -- NFL Rushing Leader Properties that would have attracted multiple offers at or above listing price within a week only 18 months ago are now, slowly and quietly, starting to show off those "Price Reduced" sign riders. These usually signal the end of the frenzy and the return of Sunday afternoons watching rushing on the football field instead of making rushes to the Open Houses. I know what a buyer's market means to her, but I wondered what it might mean to me.

Last year I spoke with many of you at trade shows and during brokerage meetings and what I heard over and over again was that it didn't always pay to spend good marketing dollars on "better quality" printed materials-- because houses were being snapped up faster than would warrant the cost of the design and production. But successful REALTORS® were still doing the traditional 'blocking and tackling' marketing efforts that had made them successful-- postcards to the farm, flyers for listings, and business cards-- LOTS of business cards. But the average REALTOR® wasn't digging deep into pocket to spend on marketing materials-- if they could save money by printing smaller quantities, producing lesser quality, or doing nothing at all and still "sell" a home-- why shouldn't they?

There was a good reason why they shouldn't have saved those pennies-- and that reason rests with today's soft market! The successful REALTORS® understood that spending on quality materials, even when business was easy to get, promoted their 'personal brand' and would make them better able to withstand the inevitable downturns that always come. Less successful or less marketing-oriented agents saved a few dollars by NOT spending on marketing materials when business was flush-- and many of them are living to regret it now that deals are harder to come by.

So with that in mind, what materials are more likely to become viable again now that inventories are increasing, the average days on market is lengthening, and REALTORS® are having to think more about how to "position" a home for sale during a longer listing period than was the case only a year or so ago?

Are you more inclined to invest in materials than before?
Which marketing materials make sense today that might not have before?
How has your marketing strategy changed given a longer 'days on market' cycle?

Chris Hendricks

Posted by Chris Hendricks on 10/30/2007 05:42 PM

Comments (28)

dom, printer, chris hendricks, price reduced, postcards, flyers, business cards, tools, marketing, market

28 Comments on Does "Days On Market" Change The Tools You Use To Market A Property?

OCT

2007

While I do realize you print advertising materials for a living, You make an excellent point. My strong belief as a Real Estate Agent is that quality visibility is very important.

The First Impression is the one that counts, and quality advertising material usually is the clients first impression.

Daniel: Agreed. And yes, we print things for a living but we're in it for the long haul, not just the quick sale today (that's why we did the deal to become the NAR printing partner...).

I'm not doing as many printed materials as I used to. Most of where my print goes is in the home for brochures. Mailings just don't bring any attention. Though I do chuckle when I get really cheap flimsy cards from other agents. When I did mail cards they were professionally printed and on good quality paper.

Cindy: I'm amazed when I see those 'cheapie' cards in my mailbox at home also. It's no secret that postcards are designed to sell "the REALTOR®" instead of the home... so seeing those tacky versions always inspires confidence [NOT!]. I liken it to the time I pulled up to meet a commercial agent showing me office space-- he drove me to three sites in his [old] [beat up and dented] Mazda. Nothing personal but he didn't "inspire" me to think of him as a particularly successful guy-- and I had a hard time giving him the business even though he was a nice guy.

We are much less inclined to do any print advertising at all. The only thing we're even considering now is postcards leading folks to our blog.

cheers

Don't judge a book by it's cover. You could be making a huge mistake.

Today's market is tough all around for those of us who are in the industry and making a name for yourself and getting that name out there is key. As part of your marketing strategy have you considered working with a home stager?

Phyllis Pafumi

Chris, I completely agree. Now is the time for marketing--high quality marketing. I did an Open over the weekend and had 17 on Saturday and 18 on Sunday. I am spending money on marketing on the webs to the big websites, my own website, Craigslist, Google pay per click and print advertising in local paper, direct mail and everything else I can think of and it is working. You have to raise the bar for your listings and get them noticed. It will net results. Great Post! Thank you!

While I agree that advertising in any form is very important. CHEAP LOOKING OF OTHERWISE. How do you keep up with the costs? When the getting is good, we usually are enjoying the benefits of this business, at the same time paying the bills accumulated from the times when they were not so good! Seems like the exposure is costly to the point that I am always chasing my tail.

Jeanean: It sounds like you're making the effort and that will likely have you around long after folks have passed by the wayside.

Vicki: You ask the question we all ask and there is no great answer for 'keeping up with' the cost of marketing. All we know is that what happens when we stop isn't a good thing.

I invest in quality materials, I think it's important not to cut down on spending.

We never had the on-fire market here, so I think a lot more agents stayed on the marketing track... which makes it tougher on me.

I'm not as alarmed by the "number of homes that haven't reacted/reduced the price of their homes so much as I'm perplexed at the seller that will not take the necessary steps to market the property in its best light. The homes that are selling and selling within 2% to 4% of list price to sales price ratios are by my observation the homes that are staged and well presented. You can spend money out the wazoo on marketing a property but "you can't polish a turd." Sorry to be so krass but hey, RealityEstate can be harsh, but what's more harsh? I think not knowing and doing the same thing over expecting different results would be.

As far as the kind of materials one should buy and or invest in most in "this kind of market," the answer is simple; the same marketing materials you would in "that other kind of market." It's during times like these that Real Estate salespeople learn to streamline and if they're smart they remain lean and mean in any and all markets. Materials that work are the ones to use. Most reputable brokerages out there have already spent $10's of $1,000's of dollars and even millions of dollars on market tools for the professional sales agent, so it seems to be that the quality purchases should go into conintued marketing of the individual agent. A class semi-gloss brochure four to six pages on you and what you'll do to list the home and what you'll specifically do to sell their home and what you'll do to assist as a buyers representative as well as specific information that's geared toward confidence building in YOU, because ultimately they're buying you and the service YOU provide, and need I say it but nothing in this world happens until a sale is made. If done effectively this marketing strategy should piggy back the communist propoganda your broker provides locally and nationally.

Effective marketing has always involved a cycle = creative advertising which leads toward the directional advertising. (Yellow Pages sales representatives know about this marketing cycle, if you've ever had one visit you then you know what I'm talking about). Today in our industry it's no so much the Yellow Pages as the directional media so much as it is the INTERNET. There you have it - the webpage then is the place where the homes are found and where the homes are ultimately marketed to and everything should point to it in order for the completion of the cycle to take place and so the second piece of marketing you should invest in would be your own personal webpage. A place where they continue to go when they're ready to buy and or ready for your services. This self-promtion thing works - but what you do once you have the client and your follow up with them will ultimately be where the rubber hits the road. Best of luck to you and great blog. (I like the company that put together my website - it's been an excellent investment for me)

Very true. You never know how things will be. So when it's good, you need to build your reserves.

OCT

2007

I do not do any print advertising, I spend most of my advertising budget on the internet. However, I do print up beautiful color informational sheets on the property for sale. I work in a second home market at the tip of Cape Cod where Buyers come from all over the country- thus the internet is their first stop. Which means many high quality photos and high quality virtual tours are required.

Great point. I have a Title company print all my postcards for me. Print media is a good thing but Internet advertising is also vey useful.

Great post, Chris! I'm finding that if you continue to market yourself, either on the internet, in person or mailings, you will continue to get business. I entered the business when the market started to change from a seller's to a buyer's market. Even though I hear many agents complaining about a slow market and not enough business, I find myself busy. Why? Because I am constantly marketing myself. You have to work hard to make it.

I take each one individually. Some homes need or deserve more than others. It just depends on the circumstance.

My husband owns as printing business - need I say more? ;-)

That being said, most of my printed material involves flyers (really NICE flyers) and occasionally postcards, plus printed informational material that I sent to my SOI regularly. That all needs to be of the best quality, obviously.

I also agree with Al - my marketing plan is tailored to each home, not generic to all.

I'm disappointed that others are marketing themselves in your comments with links, but beyond that I wanted to thank you for posting this article for being on point and hopefully drawing attention to an area that has been lacking in many realtor marketing materials.

Nice post, I do agree that only quality marketing pieces really work. I do "just listed" and "just sold" postcards in my farm area, plus beautiful flyers at open houses/roadside boxes, and often people literally have them out on the table when I show up for a listing appointment, and say that they called me because my materials looked classy. It gives them confidence in my professionalism.

Now whether the materials help sell the house or not is another question, but for those types of materials, it is myself and my business that I'm selling. I think other avenues than print are better for the actual marketing of the property.

John: Thorough and clear where you stand! Thank you for being so detailed.

Christy: Save during fat times... always a good play to call!

Rick: Sounds like you have it under control. A lot of people mistake print 'marketing' (usually direct mail or point-of-sale somehow) for print 'advertising' (magazine and newspaper placements). Seems the mood is shifting away from advertising but print 'marketing' materials remain solidly a part of most folks' strategy.

Robert, Brigita, and Al: I agree!

Tricia: I bet your jobs get extra special attention to make you look good! Thanks!

Ryan: I took the liberty of deleting the most obvious offenders. Seems more and more folks are starting to stretch the boundaries on this platform a little....

Judith: Seems I'm hearing that a lot. The print pieces are good for marketing "YOU" and if YOU get sold, the house 'buy' or 'sale' follows-- helped along by other marketing tools.

We are creating a foothold in the market now through the AR community and our blog posts and websites will have that firm foundation online. I am glad we have a little "extra time" to connect with others to see what they are doing to build for the future.

Chip: Positive spin on handling a down market. Thanks!

You are so write, you have to stay on top of the marketing, and keep it rolling out the door regularly.

Good marketing materials are always a plus. Thanks for posting this one.

NOV

2007

James: repetition matters. This is an 'impressions' game as well as one of making a good impression...

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