Who Should Pay For The Advertising?

When interviewing agents to sell your home, the more agents you meet, the more you will be confronted with the dilemma on whether to spend money upfront to advertise your home.

The advertising money is spent and gone regardless of the outcome of your campaign.

In a lot of cases, if the advertising money runs out before a sale has been achieved, the agent will ask for more money for advertising.


Agents call it VPA – Vendor Paid Advertising.  The cost and risk of the sale campaign is transferred to the home seller.  It is easy to spend another person’s money.  How do agents sell VPA to home sellers? 


By selling money – “the more you advertise your home,  the more buyers you will attract ensuring a better price”.  When you are selling your home, it will only be sold once, so you think and act with a heightened fear of missing that “one buyer”. 


In selling VPA to home sellers, agents know your concerns, using it as leverage to sell you needless amount of advertising in expensive publications.


What attracts home buyers?  Homes!

Finding a home buyer is so simple it has confused most agents.  Always remember that buyers are attracted by the home, never the advertisement.  No buyer has ever bought a home because they like the re

real estate agent’s advertisement.  Every buyer that purchases a home does so because they like the home. 


If real estate agents had to spend their own money advertising properties, the amount of advertising would plummet.  Why, because agents know that homes attract buyers not advertisements. 


In some cases, the agent will recommend that you “invest 1%” of the home’s value on advertising and marketing.  If this happens to you, agree to sign up immediately for their recommended campaign, however, on the basis that as a home seller you only have to pay the 1% advertising bill, if and when the property is sold.  If the advertising campaign does not produce a buyer, then the agent pays. 


It will soon become apparent that advertising is only a “good investment’ when the Vendor Pays Advertising.


Imagine a coffee shop without coffee or a bakery without bread.

What about a real estate agent without buyers?  If an agent needs money to find a buyer, they obviously don’t have a buyer. 


The best and fairest solution for home sellers and agents is to only pay for a buyer once the agent has found a buyer with an acceptable price and terms to the home seller.  The low cost and high effect of the internet has made expensive advertising campaigns that advertise “this weeks homes” to “last weeks buyers” a thing of the past. 


To get an accurate gauge on the right level of promotion that is needed to sell your home, tell the agent they pay until a sale has been achieved.


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