How To Advertise A Property For Sale

Selling your home without using a real estate agent is not difficult but as many buyers as possible need to know that your property is for sale if the process is to be a success. The key to getting the message out to buyers is an effective advertising campaign.

Homeowners who chose to go down the private sale (FSBO) path should consider the advertising tools that traditional real estate agents use and think which ones would work best for their property. Sellers should also remember how much they are saving in commission and commit to investing part of this in advertising, a rule of thumb is to allow 1% of the property value for promoting the property. Scrimping on advertising is a false economy, if buyers don't know that the property is for sale the property wont be sold and you may end up having to pay far more in commission to a real estate agent.

The following methods are often used by homeowners looking to sell their homes and by professional real estate agents:

Internet listing

The internet has revolutionised how we buy real estate. Buyers are able to view thousands of potentially suitable properties from the comfort of their own home 24 hours a day. In today's real estate market an internet listing is an essential part of marketing a property for sale. Good FSBO websites will let you write a detailed description and post pictures of your property.

Internet research enables buyers to make a short-list of potentially suitable properties, which they will follow up with a visit. If a property is not listed on the web it may not even make it onto a buyer's short-list.

For Sale sign

Although the internet has made a huge impact on the real estate market one of the most effective tools used to advertise a property for sale is one of the oldest. A simple but well-designed sign in the front yard lets buyers know that the homeowner is looking to sell.

More than one third of properties are sold to buyers who learnt that the property was for sale through a for sale sign. Many buyers drive around a neighbourhood that they are interested in, getting to know the area and looking at for sale signs. If your home is for sale and you don't have a sign you've already excluded one third of potential buyers.

Newspaper Classified Adverts

Despite the rise of the internet newspaper classified ads are still a popular way of advertising a property for sale.

Classified ads work well with an internet listing as only the basic details of the property need be included in the ad with buyers referred to the internet listing for more details and photos. As charges for classified ads are usually based on the number of characters or words, referring buyers to the online advertisement can save the seller money.

Flyers

Many buyers come from the local area with most moving less than 7km away from their previous home. These buyers can be reached by distributing well-designed flyers that help spread the word about the property for sale.

A letterbox drop in the streets surrounding the property helps spread the word. Posting flyers in letterboxes of smaller properties targets buyers looking to upgrade to a bigger property. Posting flyers in letterboxes of larger properties targets empty nesters looking to move to a smaller property. This also creates great word of mouth advertising and may attract buyers looking to move closer to family or friends.

Sellers should think about where their target market goes and make sure that a flyer is displayed prominently. Local stores, cafes or libraries often have notice boards where flyers can be pinned up. Local businesses sometimes have staff looking to buy so sellers should find out if their local hospital, school or large company has an accommodation officer or notice board to display flyers.

Word of mouth/networks

An often overlooked but very powerful method of advertising a home is to use existing networks. Sellers should make sure that all their friends and relatives know that their home is for sale and get them to pass the details onto their friends.

Here again an internet listing can aid the selling process. Some buyers may feel uncomfortable about approaching a close friend or relative to find out the asking price or may not want to risk offending them if they visit the property to find it is not to their taste. By viewing the property on the web buyers need only proceed if there is a good chance that the property will be of interest.

Landlords should tell their tenants that they are looking to sell and ask them if they might want to buy, after all they must like the property as they are paying rent to live there. It's amazing how many landlords prepare their property for sale by giving the tenants notice to leave when they may have been interested in buying all along.

Any homeowner who is serious about selling their property would be well advised to use all of the advertising techniques described above. By spreading the word to as many buyers as possible a seller is more likely to achieve a quick sale at a good price.

How to Interview A Property Management Company

Property Management companies come in all sizes and shapes. It seems that many of them are a small business or family business. If you have a large portfolio of properties or a large multi-family income property you can attract a variety of companies because many are paid as a percentage of rental income. If you have a single family home or a smaller rental property its just not that attractive to many companies because they won't see much income from it and you may not get the attention you deserve. You may find better service from a smaller property management firm.

How Do You Find Them?

Check with the standard sources such as referrals. You can also ask:

* Local Real Estate Agencies - They may have a local property manager they often recommend to or perhaps one of the agents also manages property.

* Check with your local Property Management Association or apartment association for a list of local firms

* In rural areas the State Apartment Association may be a good resource for a firm near you.

What Do You Look for In a Management Firm?

* Valid Brokers License: In may states a brokers license is required to operate a property management company. You can check to with the local dept of real estate to validate it and see if it has ever been revoked or suspended.

* Management Fees: Property Management fees are generally a percentage of rental income. Fees can vary from company to company and you should shop around. Expect fees of 5% or more as a percentage of rental income. If you own a single family home or a duplex that has a low rental income number, you may get quoted a flat rate.

* Maintenance Staff: Does the firm have its own maintenance staff? Are they 24 x 7 for emergencies? Will they provide you with itemized statements and for larger jobs three independent bids? Does the company charge a fee on top off the management fee for major upgrades?

* Working Relationship: Are they friendly and is the staff easy to reach at during normal business hours? Is the office clean and uncluttered? Do they respond in a timely fashion and can they provide referrals or testimonials for you to contact. In short, do you want to work with them?

* Reporting: All property Management firms should have software that will provide you with clear and professional monthly statements. Accounting: When will the manager mail your check to you? Can you use direct deposit? State laws usually dictate accounting rules for managers its good to have that information at hand. On Line Statements: Many firms will have on line monthly itemized statements available to owners. This convenience will increase transparency and save you time. EFT: Does the management firm allow tenants to pay online. This would allow bounced checks to be discovered sooner and that increases your cash flow. 1099: Will the management company provide you with an IRS-1009 and a summary profit and loss statement for tax purposes?

* Reserves: Most companies will require you leave some funds on deposit for small needs your property may require. This way they don't have to call you each time they need to send someone to fix a small item. You should ask how much reserves the company requires. Also, set a limit on how much a company may spend on your property for maintenance or repairs without contacting you for approval. Is $500.00 appropriate or $750.00, discuss your comfort level before you sign

* Vacancies: Do they charge a rental fee? Often companies will charge a percentage of the months rent for the service of renting a unit. The screening should process include an application, a credit report, a conversation with the prior landlord and income verification using the 1040 for self employed or pay stubs. The service should include reporting a qualified tenant to you and a proper lease. We provide a lot of info on tenant screening information. Be familiar with the process so that you can determine for your self that a good job is being done. You only want good tenants, evictions are expensive. Viewings: Some companies will be there for a showing to groups of people interested in the unit. Other companies allow prospective tenants use of the keys with a small deposit. Find out how viewers can see your property and whether you are comfortable with the procedures. If the management company staff shows the unit ask how often they will show and especially on weekends.

* Advertising: How will they advertise the vacancy? Be clear on all costs involved and have limits or a system of approval. Do they use the web? If so, can they create virtual tours or use photographs. These skills should translate into quicker rentals and better cash flow for you.

* Evictions: This should require a lawyer and the proper legal procedure for your area. How do they charge for this and will the lawyers fees be invoiced so that you can see the true cost.

* Termination of your Agreement: We like contracts that can terminate in thirty days with a written notice and without penalties. An exit plan that is agreeable to you is critical.

Howard Bell for yourpropertypath.com