What Kind Of Costs Are Involved When A Realtor Markets A Property?

8 years ago

I've always wondered what kind of out of pocket costs a realtor experiences in marketing a home. I'm not talking about commission splits. I understand that practice.

I understand that the internet has really changed how real property is marketed. No longer is the realtor the sole source of information.

I know that the broker may provide some marketing services such as newspaper listings. Is the listing agent expected to throw in some money to get their property in the newspaper advertisement?

I know that a realtor has to pay dues to the NAR. I know that a realtor has to subscribe to the MLS. Is there a charge for listing in the MLS. How much does a realtor typically pay for virtual tours? Are there additional charges for Zillow and Trulia? What other miscellaneous expenses do they typically encounter when marketing a listing?

As an appraiser, I have a long list of expenses. I know most realtors have no clue as to my expenses. I'm curious about the other side of the business.

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Comments (4)

elpaso1
8 years ago
Cost of having signs made, cost of putting up/taking down signs (I pay 20.00 to a company to put up, and 20 to remove sign), professional photography, virtual tours, advertising in print media, realtor tour incentives ( I do a cash raffle among agents who attend, some people do catered food), minor staging costs, closing gifts (depending on home price 150.-300.00), car maint and cleaning, billboard cost, required education training cost (every 2 yrs here), local, state and national dues/fees).
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c9pilot
8 years ago
You're combining the background "costs of being a Realtor" with specific marketing for a single listing?

Just to be a Realtor you have schools (initial then continuing education) and licensing every year or two. Pay into NAR, state and local. Membership in MLS. Supra (electronic lockbox) monthly fee (plus pay $200 each for a new lockbox). Broker fees (E&O, dues, etc) - which may include some things - my dues are high but includes paperless online transaction management, website, e-card, CRM, and other business tools. Business cards.

For a listing, my MLS does not charge per listing (thank goodness because it's already high enough), but it does cost to get a featured listing on Realtor.com. Signs are surprisingly expensive, plus most use a service to put signs up and take them down. Lockbox and get extra keys made. Also a combo box for services to enter. Professional photography (a lot of agents think their iPhone photos are fine - they're not unless its a listing under $100K for my area) Extras such as drone or virtual tours depend on the property and price range. I think we have a free "virtual tour" with our MLS or local board but it's really just a slideshow of the photos. Staging, which many homes really need. Although Facebook is free, it costs to do certain marketing there. Newspapers, luxury magazines, and other print media has costs and lead times. Single website & digital flyer. Brokers' Open and Open House food & drink & balloons and temporary arrow directional signs (I keep a dozen in my car). There is lots more but I'm not even a listing agent so I don't even know all of the options - this is just what I know of that my team does (and there is probably more).

All of this depends on the agent and the listing and what they offer in their marketing plan - this is why sellers should interview three agents and see where they differ for that particular house.

Zillow & Trulia are web-scrapers and don't cost anything to just get the listing on there (accuracy not guaranteed). Boosting listings and getting your own self as the featured agent do - otherwise your listing shows up with three unrelated agents (who pay for the zip code).

For reference, I know of an agent who spent about $10K on a $1.5M overpriced listing before the seller dropped her after 6 months. Could not recoup expenses from seller.
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sushipup1
8 years ago
Our realtor paid $277 for a professional photographer for our house listing which included a virtual tour. I think it helped: we had 4 offers over list price in less than a week. This was a $650K house in California.
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OttawaGardener
8 years ago
Having used a Realtor for 3 property sales in the last 4 years, I can safely say that TIME is a value that must been considered as a cost. Since all 3 rural properties required driving on the Realtor's part to list, show, and provide offers back to us, there is gas and vehicle maintenance to factor in as well.

What Kind Of Costs Are Involved When A Realtor Markets A Property?

Comments (4)

elpaso1

c9pilot

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