Why does the seller have to pay a marketing fee in order to have his or her property sold by auction? The answer: it depends. If you have only one item that you are bringing to an auction gallery to be sold by consignment, there probably will not be a marketing fee. However, if you are trying to sell your home, land, condo at the beach, office building, shopping center, etc., in all probability, the auction company will charge a marketing fee.
Let’s start out by defining or describing what a marketing fee is and what it is not. First of all, the marketing fee is not part of the commission earned by the auction firm. It is what it is, a marketing fee. How can anyone show up at an auction or bid online, if it is an on-line only auction, if people don’t know that an auction will take place on such and such day and time?
Sad to say, but there are a lot of folks out there that believe the auctioneer puts the word out somehow there is going to be an auction, shows up on auction day, and sells the property, collects his fee, and then goes home. I wish it was that easy.
When talking to prospective sellers about selling their property by auction, we give a detailed sale proposal outlining exactly what we believe is required with regards to marketing property and what we feel it will cost to have a successful auction and how we plan to implement the marketing . We let our clients eliminate any part of our marketing proposal they feel is not needed.
You may be asking, “where is the money spent?” Again, the answer is: it depends on the property being sold. You would market a residential home different than you would undeveloped acreage or a commercial building. However, regardless of the type of property, some of the expenses would include (1) opinion of title by an attorney, (2) setting up various websites and ad words(3) designing ads, post cards and brochures, (4) printing and mailing of post cards, brochures, or flyers, (5) e-mail blasts, (6) printing and placement of signs on the property and at various other locations, (7) Newspaper/magazine ads, (8) staffing and scheduling open house showings and inspections (9) administrative expenses before and on day of auction. These are just some examples of the expenses in marketing. There can be more depending on the type of property you are selling.
Your next question might be, “Well…, how much does it cost?” You guessed it… it depends. The cost to market a $50,000 property would be different than, say a $5,000,000 property. And of course, location is a big factor also.
Let me ask you a question. Does McDonald’s make the best hamburgers in the world? Definitely not. But why do they sell more hamburgers than anyone else? Because they spend more money on marketing than anyone else.
Need to get your home sold fast, you need good marketing. Give us a call and let’s talk.