Blog / Prospecting
Driving property value through marketing, Mark Dwyer
Property sellers see advertising as a fi nancial risk – an expense that does not guarantee a result, and it’s usually seen as a cost that the agent should bear. In an extract from the newly launched Property Marketer product, expert sales trainer Mark Dwyer explains how to win listings and get seller investment in marketing.
The majority of marketing presentations to sellers are argued on the premise that advertising increases interest, and competitive bidding from multiple buyers increases the price.
This has some validity, however the fact that it is limited to advertising makes sellers baulk. Understand their point of view – they’re paying you for buyers you should already have. To suggest they should pay to advertise for buyers (V.P.A) is a nonsense!
The problem is usually a simple one. The sellers don’t understand what marketing is and agents very often fail to educate them. To win listings and have the seller happily investing in a marketing package, you must understand marketing and its ability to leverage value; you have to know when this happens in the transaction; and you have to be able to explain it.
In a word, marketing is perception. The greater the perception of value the more chance there is of this becoming a reality. Why pay a few bucks for a bottle of water that cost the manufacturer about 7 cents? Marketers have managed to create the perception of value and turn it into a reality.
Marketing is what creates the perception – the photo of the bottle of water dripping with condensation and the snappy copy that has you longing for a pristine Fijian spring. Then they advertise the perception they’ve created.
Advertising is the conduit that gets the message out. Marketing, by contrast, is the message.
There are two values for every property – comparative value and market value.
The realistic comparative value is derived by benchmarking the property against others and is how most agents determine and argue property value.
Market value however exploits the possibilities by creating greater perceived value and there are many ways to do that. Common aspects of location, accommodation and presentation of course, but more sophisticated tools such as professional copywriting and photography, video tours, lifestyle benefi ts, highlighting every uniqueness of the property, scarcity or demand should all be considered.
In essence market value is driven by a passionate belief in the property and what could be possible with the creation of the optimum perception of it.
When marketing plays its most vital role is something you also have to understand, and is best understood from the buyer’s perspective.
The buyer has decided on a property and negotiations are underway. What would be more conducive to paying a better price? A professionally written, photographed and printed brochure or a small classifi ed ad? Ask yourself which you would show family and friends. Why?
At the very least marketing acts as an insurance policy against devaluation by ensuring the property looks its best. And it gives the owner every chance of increased value when that better perception becomes a reality.
See more at propertymarketer.com.au
Mark Dwyer is the author, presenter and advisor of Sales Trainer. Register at salestrainer.com.au for a free tour of membership benefi ts or call 02 8858 1300.
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