by Rob Wicker
It’s easy for a homebuyer to get a feel for the market. If a buyer actively looks at houses for a couple of weeks and he can afford approximately $600 thousand, it doesn’t take long for him know what a $600 thousand house looks like. There will be some variation of course based on variables like condition and location, but the buyer has a general idea regarding what he can afford.
This is why it is important for real estate agents to make sure they justify the price of the property in their advertising. Whether you’re advertising in a magazine, on the Internet or through direct mail—the advertised property needs to communicate full value. Usually, the reason the property does not reflect full value is the poor quality of the photograph. Maybe the angle is bad, the lighting is dim, or the agent did a drive-by photo shooting and the image is poor. Or perhaps the square footage of the house is less than expected and you fail to explain that the reason the smaller house is priced at $600 thousand is because it is in an extremely desirable area.
If you advertise a $600 thousand listing and after examining the picture and reading the ad the buyer thinks the property is worth maybe $400 thousand, is he going to contact you? Not likely.
Justifying the price should be a gate in your advertising model. If you run an ad that does not get the response you wanted, ask yourself this question: Did I justify the price of the property? Better yet, ask yourself this question before you actually run the ad.