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Marketing budget
Marketing budget requires planning and organization. Not one-budget schedules fit all! The FSBO’s marketing budget will differ per state and per individual’s financial resources. However, when planning a budget you should keep in mind the following:
The objective or burden that a FSBO poses when selling their homes is selecting advertisement spots to showcase their property. Currently, there are many options available for a FSBO to advertise. You can narrow the list to 8 mediums. According to a research study conducted by the National Association of Realtors® in 2004 concluded that the methods used by FSBO to market their home included the following list:
Yard Sign 63%
Newspaper Advertisement: 44%
Open house: 33%
Friends/ neighbors/ relatives: 25%
Internet: 24%
Direct mail (flyers, postcards, etc.): 6%
For-Sale-By-Owner magazine: 6%
Television: 1%
Other: 9%
Please note that 63% of FSBO relied heavily on yard signs to sell their home. From this data you can infer that there is higher probability that a potential buyer will buy your home if they see a yard sign. Also notice that according to this study 24% of the homeowners advertise on sites like MyFSBOflorida.com™. A more recent study just released this year also by the National Association of Realtors® indicated that use of the Internet to search for a home is increasing over time, from 74% in 2004 to 75% in 2005.
Based on the above findings you can create a marketing budget that fits your current resources. Please note that a sound budget will allocate money to all respected areas. However, be aware that not all FSBOers can spend money on TV ads or on Major metropolitan Newspaper due to their high cost. Most often these costs if done frequently can exceed your 6% commission. The bottom line chose wisely how to spend your marketing budget. As a general rule of thumb, create a budget that will fit your financial resources.
