As a home ages it
becomes unique from it's
neighbors'. This is
especially true of the 50+
year vintage home.
Analyzing it's true market
value takes a Specialist.
Now YOU know one!
Kathryn Hisert
Marketing Your Home
                    

"Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, services, organizations, and events to create and maintain relationships
that will satisfy individual and organizational objectives."
-Contemporary Marketing Wired (1998) by Boone and Kurtz. Dryden Press.

Marketing Communications (a.k.a. 'Marcom'), is even more than that. It is the integration of activities
within different media, direct marketing, word of mouth, graphic design, packaging, promotion, sales,
branding and public relations. It is the goal of the 'marcom' professional to weave the same message
throughout each medium.  The message should be clear, forward thinking and memorable.

Why is Marketing important to you?
If you are selling your home:  

*   The Marketing professional is going to work with you on how your home is perceived by others.
Afterall, your house is not just wood, plaster, nails, etc.  It  was once your goal, your dream, possibly
your stepping stone to your future. Now, it needs to be someone else's.  A home for themselves
and/or their family.  This concept needs to be developed and presented professionally.  What makes
your home unique? Inviting? Breathtaking? A good investment? Affordable? Or, just downright
'homey'?

*   The pricing of your home takes in many, many factors -- not just how other homes in your area are
currently priced. Among these factors:  
-- The property's physical characteristics; lot size, upgrades, re-modeling, (with and/or without
permits), parking accommodations, repair/maintenance (i.e., life of roof, flooring...), etc.
-- Environmental characteristics:  Landscaping, noise, crime, traffic, view (and it's brother, privacy!), etc.
-- Emotional response:  The impact your home has on others when they drive by, walk-up to or
through the door, wonder around the house, and pace the yard...Remember, they are buying their
dream or a concept closely resembling it, (regardless of whether or not it is for them personally or
'strictly' an investment). An emotional response is inevitable.
-- Competitive pricing:  The most obvious, and all too often, mistaken to be the only pricing basis.
Pricing is based on what other homes in your area are currently selling for (vs. listed for!), and what   
they have sold for in the past. Similarities will be compared; number of bedrooms, number of
bathrooms, square footage, etc. Then a corresponding amount is added or subtracted for what is
different about your home, (keeping the other above factors objectively in mind).  
--  Upkeep:  The savvy buyer is going to ask questions about the cost / maintenance of a home.
Among the possible questions: Are there HOA* dues? If so, how much are they and what benefits
are derived from them? Is there a private alleyway, or drive?  Ceilings with extreme height? (Looks
beautiful, but can be costly to heat.)  Is there low maintenance and/or low water consumption
landscaping. How old is the roof? Has the plumbing been upgraded? etc.

*   Sellers:  Promoting your home is an accumulation of the factors discussed at the conception and
pricing stages being shared with the buying (and prospective!) public.  How effectively this is done
depends mostly on the Marketing experience, energy level, and the budget of the agent or Realtor.  
Ways to promote:  (Some obviously tried and true!)

--  Presentation is always the first step. Prepare your yard/s and your home in a way that will invite
people in.  If it looks scary to walk up the path or down the hall your buying audience is going to be  
limited. Discuss the possible need to stage your home. (See: StagedHomes.com)
--  Placing a post with hanging sign in the front yard, (or window/patio area if not allowed due to HOA*
restrictions).
--  Flyers in the box attached to the post (above).
--  Mailings to neighbors.
-- Open House/s.
--  MLS (Multiple Listing Services); most often used internet exposure service utilized by real estate
agents and Realtors. (Sellers must sign a waiver if they do not want their property listed here.)
--  Individual property website, (and the promotion that goes with it!).
--  Internet postings to multiple sites for greatest cyberspace exposure. (Different agents and Realtors
have their own preferences and budgets.)
--  Agent / Realtor tours. These are given by and for the local realty company the agent works for as
well as their local association, (if they are a member and choose to use this avenue).
--  Multi-media advertising:  Print ads (i.e., local and larger distribution newspapers, magazines, etc.
Air-wave ads (radio, television, front yard post 'talking' signs), direct mailings, etc.
--  On-going self or company promoting materials (i.e., mailings, media ads, internet site/s, etc.)
--  Additional post hangers; pictures, 800 number voice tours, radio voice tours, special features...
--  Local considerations:  Advertising directly within the neighborhood's market. For example: If your
home is close to an entertainment center, attraction, or is a commuter's dream, Marketing your
property to the individuals most likely to appreciate those qualities can be quite effective.

(*HOA = Home Owner's Association. They are most commonly used in condominium, townhouse
and Planned Unit Development, (PUD), housing developments.)

Each property's unique qualities will help dictate what Marketing plan will best suit the promotion of
the home. For example:  If your home has a famous architect's name associated with it, like Joseph
Eichler, your agent or Realtor should promote your property in the media most often viewed / read by
Eichler home enthusiasts. They are the ones most likely to appreciate, invest in, (and suggest others
do the same), homes like yours!

Buyers:  Yes, promotion is important to you, too!  Ask yourself: 'W ho is going to speak for me; my
needs, desires, financial restrictions, physical and environmental requirements, etc., when I am not
there?'  Your agent or Realtor MUST understand these considerations and competently balance them
when negotiating on your behalf.  Now, ask yourself this, 'If I was the Sellers' agent would I want to be
in negotiations with my Realtor?'. This may sound like an odd question. But, as we all know,
relationship building can make or break a deal. A strong negotiator listens well, thinks ahead, and
allows for win-win situations. Assertiveness is required. Aggressiveness can be, well, distracting, at
best -- a deal breaker at worst.  Choose your representative wisely.

When should you be concerned about Marketing?
Simple: Always!  How your home (as a Seller), or you (as a Buyer), is presented to the 'opposite' side
can be crucial. You want every 'edge' you can muster.

Where / How is your Marketing getting done?
--  See 'Promotion'.  How much and how effectively it is executed is dependent on the communication
you have with your agent or Realtor -and- their abilities, (and budget).  
--  Choosing the appropriate Marketing medium is only part of the job. Putting the plan to get
(including writing the material/s, placing graphics and dealing with timing issues), is instrumental
in forming the basis of an effective / successful campaign.   
--  Work with a professional who knows how to present your property in it's best (but, honest -- and a
avoid a lawsuit!), light.

Who is qualified to handle your Marketing?
Sellers:  An agent or Realtor with Marketing and effective negotiating experience.  They should know
how real estate Marketing is done in the traditional form, as well be able to 'think out of the proverbial
box'.  So, don't discount the person with out-of-the-industry experience! Often times they will bring new
and effective ideas to bare.

Buyers:  An agent or Realtor with listening -and- articulation skills!  Your representative will not only be
speaking with you, they will be speaking on your behalf. They need to know what's important to you.
And, remember -- YOU have a responsibility to communicate the details to them.  

Won't I save money if I sell my house on my own?
Let's consider why someone would want to take this route. The Seller believes:

*    They can Market their home as well as an agent or Realtor.
--  It's their home and no one knows it better than they do.
--  They can write compelling Marketing materials and place ads, etc. (See Promotion).
--  They have a budget allowing for the learning time, promotions, and possible additional time on the
market.
--  They know how to create a website for their property. (Or, don't think it's important.)
--  The Seller is comfortable with other 'do it yourself' projects and is a self-starter.
--  They are not convinced Sales skills are necessary; the house will 'speak' for itself.

*   They already know a lawyer who will help them with the contracts and paperwork.
--  Each time paperwork needs to be completed, exchanged or negotiated it must be handled properly
to avoid a lawsuit. (Time limitations are set for different cause/effects/responses).

*   Money needs to be saved.
--  They are drowning in debt and can't afford the mortgage any longer. Selling their house may allow
them to use the equity to pay down some bills and start over.
--  The Seller has the time to do the Marketing. This, for the most part, they see as holding Open
Houses.  
--  The Seller has little or no faith in an agent's or Realtor's ability, integrity, or other category.
--  For some Sellers their reason is quite simple: "General Principle".
--  Their question is:  'Why should I pay someone so much money when I can do it myself and save?!'.

Commissions de-mystified:
This is a good time to correct/disspell the commission issue. Proponents of the FSBO (For Sale by
Owner) process suggest the Seller will save 6% - 7% of the sales price of the home if the Seller
handles the process themselves. This would infer the Seller would be in the unique position of not
paying the Buyers' agent's commission.  In the Silicon Valley the standard sum of commissions is
6%. This is -split- between the Buyers' and the Sellers' agents / Realtors.  Therefore, the actual
possible savings (of the standard fee), would be up to 3%.

One must keep in mind the commission structure is negotiable and determined, (contractually), by
the Seller when first listing their home. The most common options:
--  It can be a flat fee versus a percentage of the sales price.
--  It can have different percentages for each 'side' of the transaction. For example: 2.25% to the
selling representative and 2.50% to the buying representative. The sum being 4.75% versus the
standard 6%.(After splitting the respective commission fees with their firm and/or broker, each
representative will be covering their own time and cost expenditures. (See: Promotion.)

Example of commission fees on a $700,000. sales price: (Using the fee structure from above.)
Seller: 2.25% of $700,000. = $15,750.          Buyer: 2.50% of $700,000. = $17,500.

The Buyers' representative will have to be paid. So, the 2.50% must be subtracted.  The commission
in question (to be 'saved') is only on the Sellers' (listing) side of the transaction. In this case the
savings is 2.25%, not the reported 6% - 7%.



Costs for the Seller who would like to handle the process themselves:  
(This is not intended to be inclusive of all costs, or a quote for services, but only as a representation of
possible financial concerns involved.)  

Data received from "For Sale by Owner" website. You are welcome to click on the icon to the left for
more information.

*   Learning the 'ins and outs':  Available software -- up to $258.95
*   Median priced selling kit:  $349.00
*   Home listing to be posted to multiple internet sites with other FSBO home listings. (The site most
commonly used by real estate agents and Realtors is not listed, the Multiple Listing Service a.k.a. the  
MLS.)
*   Easy to build flyers.
*   An e-book / guide to the process (59 pages).
*   1 yard sign and 1 directional sign (additional ones for an open house would need be purchased
separately).
*   For an additional fee an affiliate will assist with the paperwork. (Fee amount not disclosed on the
site.)
*   For an additional fee an affiliate will assist with the open house/s. (Fee amount not disclosed on
the site.)

A cautionary suggestion is made to the would-be do-it-yourself-er:  Involve an attorney to ensure
paperwork is complete, correct and is timely. Fees and appointment times to be determined between
the seller and the attorney.

The Seller should ask themselves these questions:  
*   Is my home and landscape 'public viewing ready'?
*   Do I have confidence I will ensure all paperwork is completed properly, meeting all deadlines, and
all ordinances and laws are being followed?
*   Will Buyers' agents and/or Realtors know my house is for sale?  
*   How highly developed are my Sales and Marketing skills?
*   How long will it take to sell my home?  NO one really knows this answer. There are many factors
determining the outcome.  Proper Marketing is only one of them.
*   If it takes a few extra months, do I have the time?
*  Can I afford the accumulated costs of waiting? (Possibly unpaid mortgage payments or the inability
to move into the next home, etc.)
*   What are the pros and cons of having inspection reports done prior to putting my house up for sale?
(The accompanying question: Do I know reputable, well priced home, termite, roof, pool, chimney,
environmental, etc., inspectors?)
*   What is an "As-Is" sale? Is this a viable option?
*   Will Buyers' and/or their representatives see a benefit to working with me?
*   Will Buyers' and/or their representatives be willing to work with me?

Do you want to discuss Marketing plans or options without obligation?:
Call or email Kathryn.


Note: The distinction being made between a real estate agent and a Realtor: A Realtor is licensed
and a member of their local and National Association of Realtors.  Membership requires the
individual to adhere to a standard of ethics and on-going, formalized education in the real estate
industry.  Kathryn Hisert is a Realtor. Click here for more background on Kathryn.
What is Marketing? And Why Should I Care?
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("ForSaleByOwner.com" was
chosen as an example only.
There are other service
companies working with
non-represented Sellers. No
positive or negative
implication is intended. You are
welcome to click on the above
logo for more information --
direct from the source. )
    Marketing in the real estate industry is defined on this page.  
Scroll down to find these categories:

*  What is Marketing?  * Why is Marketing important to you?    * Establishing a Concept     

* Establishing Price  * How is Promotion/Distribution accomplished? (For Sellers & Buyers)   

* Qualifications of a Marketer/Promoter  * 'For Sale by Owner'    * Commissions de-mystified    
NewVintageHome  Where Life Begins...
Want to pay less than the standard commission?
Contact Kathryn Hisert and mention this offer!

Tips for selling
your home:
Staging, quick,
simple, (and often
times) , FREE
improvements!
Click here

FREE
staging consults
to selling clients!

     Ask
       Kathryn