Real Estate Talk: Assessing
the marketing campaign
Measuring the progress of your broker’s campaign
By Joseph Marovitch
Updated December 16, 2021
We hire a broker to sell our residential property but how do we measure the progress of their campaign? Do we just trust that they are properly marketing and pricing our property? Do we think that because there are a few visits, we see progress? My broker tells me I had 12 telephone inquiries this week. How do I know this to be accurate?
The most effective way to know if a property is properly priced and marketed is to review the month-to-month results of the responses.
The marketing campaign should consist of advertisements in local papers, emails to potential clients, telephone calls to potential clients, flyers to the area where the property is, arranged visits, and exposure on multiple websites including Centris, with a virtual tour attached.
I am about to tell you a secret that most clients do not know. Many brokers also do not know this…
The most effective way to know if a property is properly priced and marketed is to review the month-to-month results of the responses in a summarized report. The report should include how many ads were placed and where, how many emails were sent out and to what areas or area codes, and whether social media was used and which social media, so the seller can look for the ads.
The assessment of results would indicate the following in the monthly report:
- The number of views on Centris
- The number of calls and email inquiries the broker receives
- The number of visits to the property
- The number of written offers received (verbal do not count)
All brokers can print out from Centris how many views took place in any given period of time. When this information is combined with the broker’s record of calls and visits, you have a clear indication of where the market campaign is going.
- Price is too high:
Many Centris views, plus few calls and few visits indicates that the interest is high but so is the price.
- Marketing is insufficient or market is weak:
Few views, plus few calls and few visits indicates the market is slow or the marketing effort is insufficient.
- Price is very good:
Many Centris views, plus many calls, many visits and multiple offers indicates the purchase price is good.
It should be noted that:
- An overpriced property assists in selling the competing properties.
- An overpriced home, if not revised, can lose waves of serious buyers.
- As time passes, an overpriced property costs money and loses value.
Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.
Next article appears on January 13, 2022 – Have a wonderful and healthy new year!
STATE OF THE MARKET
Please note that the preceding information applies to a normal non-pandemic market. The Bank of Canada recently indicated there will be three interest rate hikes over the coming year. As interest rates rise, the market should normalize in that competition of buyers will not be as fierce and more property will enter the market, hopefully. Omicron and Delta are unknown and unpredictable factors that play into the market. If the situation can be overcome with vaccinations and precautions, we may get back to normal. The pandemic is an all-or-nothing issue. Either everyone works together to stop this issue, or no one wins.
‘Over the past year, property values in parts of Montreal have risen as much as 25%. On top of the increased value, these properties have risen, in some cases, another 20% to 25% as buyers bid on properties driving the prices even higher.’
Currently, the market is considered very hot as there is a lack of inventory and many buyers. Therefore, market-priced property entering the market sells very quickly and above asking as there are many more buyers vying for the same property.
Over the past year, property values in parts of Montreal have risen as much as 25%. On top of the increased value, these properties have risen, in some cases, another 20% to 25% as buyers bid on properties driving the prices even higher.
Example: NDG property values rise 20 to 30 percent over a two-year period. An upper duplex that was worth $600,000 in 2019 is now worth $800,000 in 2021. The property is then placed on the market in 2021 at $810,000 and multiple buyers descend upon the property and end up in a bidding war. The upper duplex, which already had a value increase of 25% or more, now sells for $880,000 equalling another value increase of 10%. Therefore, the marketing campaign in the current circumstance is list one day and sell the next. This will pass over the next year if we can once again get the pandemic under control.
Have a great week, stay safe, and happy holidays!
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Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible for, Joseph applies this to his present real estate broker career. Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or email@example.com