Fair
housing legislation designed to offer consumers protection from discrimination is very
strict in terms of real estate advertising. Advertisers must avoid use of words
that are "exclusionary." "Here's a copy of an ad for your house that ran in the Sunday newspaper," says the notice clipped to a one-inch square of newsprint. The copy describes the nicer features of the home and invites the reader to inquire further...but what is the true message of the ad?
Most Sellers are unaware that there are three objectives that real estate brokers try to meet with real estate ads, and selling the house in question is often third in that list. First objective is simply to make the office phone ring in an effort to capture to buyers for any property; second is to promote the office and/or agent; third is to sell the property itself. Understanding the nature and intricacies of real estate advertising enable Sellers to become more savvy consumers.
Use of Property Addresses in Real Estate Advertising
Multiple Listing Service (MLS)
Print Media: Newspapers and Homes Magazines
Direct Mail & Brochures & Home Books
The Secrets of Internet Advertising
Use of property addresses in real estate advertising
Pity the unwary and innocent home shopper who commences the first round of telephone calls after circling properties in the Sunday newspaper: "I'd like to know the address of the property you are advertising that has four bedrooms and three full baths."
"First give me your name and telephone number, and be advised that anything you say can and will be held against you unless you sign a buyer broker contract with me today." Sound familiar?
The dialogue may be a little overstated, but the impact is the same in many cases. The real estate "Pro" on the other end of the Buyer's line wants that name and phone number before releasing any information...treating the property address like a national nuclear secret. A verbal tug of war ensues...and the prospect is often left without a choice....succumb to the possibility of endless harassing phone calls from this individual or never learn the address of that home.
Now....imagine that you are selling a home...and your real estate company is running a large ad in the Sunday paper, and there's your house in the ad, as promised. Does the lack of an address occur to you? Why are addresses only used in Open House ads? Simple: The ad is placed to make the phone ring....so that agents on the other end of the phone (sitting at the "opportunity" desk) have a chance to speak with people who "want to buy homes somewhere". Where does that leave the Seller?
As an agent I'd sooner pick up the phone and hear: "Can you tell me more about that house at 1152 Oakhurst Drive?" Imagine...the buyer has already seen the address in the ad. Chances are good that he has already driven past the home. Statistically we know that the response rate to an ad is 90% less with addresses than without addresses. However, the quality of the call is the paramount concern, and a Buyer who calls about a property who knows the address of the property is a better lead in terms of the property being advertised
As a Seller, ask these questions:
"Will my property be used to generate leads for agents in the office?"
and
"How will the office generate effective leads for my property?"
Multiple Listing Service (MLS)
The multiple listing service is a compilation of listings from all subscribing real estate office and agents. Each time a property is listed for sale, information about the property is entered into the MLS system so that all agents have access to the data and have an opportunity to share it with their customers and clients. People working with a Realty World agent who see a Century 21 sign can call the Realty World agent for information and an appointment to view the home.
The MLS is one of the more subtle aspects of advertising and also one of the most important. The "Remarks" section of the listing is information that one Realtor shares with the rest of the real estate community. It is also information that is shared with consumers when the local MLS has a consumer Internet site (which, incidentally, carries a wealth of information about the property, but not the address!).
Print Media: Newspapers and Homes Magazines
Historically consumers are trained to look at newspaper and homes magazines, and this trend continues today. Studies about trends in results tracking are interesting. Studies show that over 90% of consumers will call about a newspaper ad to "rule it out." Newspaper ads and homes magazine continue to proliferate because they offer real estate professionals an easy way to advertise...because they are the lease expensive way to advertise overall....because the advertising will make the phone ring....because Sellers will see that they are doing something....regardless of the fact that newspaper and homes magazine advertising results are probably the least effective form of advertising...from the Seller's perspective.
Homes Magazines Pop Quiz / Food for
Thought:
Q. Why is the Realtor's portrait
often larger and more prominent than the photos of the houses in the ad?
Q. Why is the text describing the
real estate agent large and easy-to-read while the text for the ad about the
house sends the Buyer scurrying for a magnifying glass?
Direct Mail and Brochures and Home Books
By far the most effective form of advertising is a targeted direct mail campaign. The most prevalent type of direct mail is the Real Estate Tell 20 or Tell 50 campaign....a listing agent sends our 20-50 postcards, usually in the same neighborhood as the house that is listed..."I've just listed a home in your neighborhood..." Is this a good idea? Yes....especially in terms of generating new listing leads. Occasionally, however, a neighbor will share information about the new listing with someone who is interested in buying a home in the area.
I've taken this concept to a higher level...how about a Tell 1000 - 2000 after a home is listed? Forget the tacky postcards...I publish a piece in newsletter format that includes information about the house, including address and photo...and include other useful information and listings...and carefully develop a mailing list of area residents as well as areas from which I expect to draw the greatest response from prospective buyers. This system is very expensive and labor intensive...but if our thinking has evolved past making the phone ring to marketing and selling our Sellers' properties, we have to take our efforts up a few notches.
Brochures are also important. Imagine that a Buyer has appointments to see five or six houses, sometimes very similar in size and character. An illustrated, well-designed, and informative brochure in the hands of the Buyer can sometimes make the difference between what he can remember about the most important and salient features of a property.
Does the property warrant a professionally prepared brochure? Luxury home marketers may offer color brochures or flyers. How many does the company plan to print? Will be be four-color offset quality or Xerox-color-copier variety? Who will receive the brochure? Will distribution be limited to persons who make appointments to see the property? Or does the printed piece fit into a specific direct mail marketing campaign?
Home Books take the brochure concept to a much higher level...a Buyer can take a Home Book that contains room dimensions, major features, and photos...as well as other information....and be able to "walk through" the house over and over again without the distracting influences of confusion after seeing multiple properties ("Which was the house with double closets in the master bedroom?" "Is this the house with the stained glass windows?")
Fair
housing legislation designed to offer consumers protection from discrimination is very
strict in terms of real estate advertising. Advertisers must avoid use of words
that are "exclusionary."
Property ads containing language describing a property as "ideal for first-time home buyers," may give the appearance of excluding empty nesters or other persons falling outside the description of buyers contained in the ad. An ad aimed at "empty nesters" would have the same effect, excluding the first-time home buyer from the equation.
This is what real estate agents are told in Real Estate 101 training: "Open houses do not sell houses. Open houses have two purposes they bring buyers to the agents (who will likely buy another house); and the Seller is led to believe that the agent is actively trying to sell the house."
Over and over again the agent is cautioned that the Open House is futile.
What can increase the Seller's odds for a successful Open House?
1. Newspaper ads with addresses are highly effective in terms of Open House Advertising. Make sure that the directions are explicit.
2. Precede the Open House with a targeted direct mail piece (at least 1,000 pieces) containing an invitation to the event.
3. A Realtor-directed brochure, sent by mail or fax, with an invitation to local real estate professionals with a promise that their clients and customers will be honored in terms of commission entitlement.
4. Additional signage...an Open House sign or sign rider on the subject property for a full week preceding the event, and directional arrows on the day of the Open House.
The Secrets of Internet Advertising
If "location, location, location" is the mantra of a savvy real estate decision, then "address, address, address" is the mantra of an Internet real estate ad. Cyber surfers are serious data gatherers looking for optimum efficiency in a property search. The Internet overall embraces an "openness" concept and new business models that have embraced this concept have soared beyond anyone's initial expectations.
What is the first and most important consideration for a Buyer? Location. Period.
Other important aspects of Internet advertising include establishing a significant multi-site presence and delivering lots of information...as much information as possible....including room sizes, major features, and photos.
Internet advertising gives some agents and brokers a chance to say: "I'll advertise your home every day until your house is sold." Here's the hidden truth: The broker places a short property description on the office web site, where it will stay until the house is sold. The local MLS places a description on the consumer web site...and voila, the broker has license to say that the house is advertised every day. Problems: Usually, neither site contains the address of the property. And traffic to the site? Who knows?
A multi-site Internet presence is important in terms of the property description. In which directories will it be placed? How much traffic is verifiable? I will address these issues at greater length in an article soon.
Fair Housing Do's and
Don'ts in Advertising
Poorly worded advertising
can spell "Discrimination" for unwary sellers and agents.
Preliminary Seller's Worksheet
Coming Soon:
How to Read a Proposed
Real Estate Marketing Plan
or "How to read
between the lines" of a real estate marketing plan
The Best Internet
Sites for Cyber Home Buyers
This is presently a work in
progress...until the final piece is ready, check the links on the Awards
page.