Real estate agents have long sold vendors their marketing recommendations based on their own past experience mixed with a bit of guess work. But you can now make recommendations based on data about what is the most effective in their area based on the experience of all agents.
A new dataset called Media Maximiser allows agents to make confident recommendations to property sellers about the most effective ways to advertise their homes.
The Media Maximiser data set is based on the listing, sales and advertising history of more than 850,000 properties across Australia over the past two years. It identifies the most popular and effective advertising options for agents and their vendors based on the criteria that the vendor believes is most important to them. The data is refreshed monthly and will be available down to a postcode level for use in agent CMAs or as a PDF.
Using Media Maximiser, agents and vendors are able to identify the media option – print, online or both – that offers the highest success rate to achieve a sale, the method that correlates to the highest prices, and the lowest time on market.
“Media Maximiser is a revolutionary piece of data that takes all the guess work out of recommending an advertising campaign for agents, and removes any suspicion felt by vendors about the value of vendor paid advertising,” said Greg Dickason, Head of Solutions at Core Logic Australia.
“The data helps property sellers understand the different results achieved by the various types of media and make a confident decision about the best way to market their homes based on the outcomes that are most important to them.”
To create the dataset, Core Logic Australia established a process to tag nearly every property that comes onto the market, identifying when it first listed, the price it list at, where it advertised, when it sold, and the difference between the sold price and the original listing price.
One of the surprises to come from the data is its identification of the ongoing effectiveness of print advertising. The data identifies that combining newspaper advertising with an online campaign significantly increases the likelihood of a successful sale, is more likely to result in a higher final price, and often decreases the time a property spends on the market.
“The data unequivocally shows that adding print to an online advertising campaign increases the likely success of a property selling, and results in a higher price for the property through less discounting – especially at the premium end of the market,” Mr Dickason said.
“In some markets it is also successful at reducing the time it takes for a property to sell, although in the current demand-hungry market, this is less pronounced.”
Mr Dickason said the data created transparency which would benefit both vendors and agents as it is now easy to determine if the cost of a recommended advertising campaign is justified.
“If an agent asks a property owner to spend $5,000 on a vendor paid advertising package based on trust, that is a hard ask,” Mr Dickason said.
“But if an agent can prove to a vendor using data that the investment of $5000 in an advertising campaign is more likely to result in a price difference of $20,000 – $40,000, then that value proposition is a lot easier for a seller to understand.”
Media Maximiser is available as an upgrade product for RP Professional subscribers. To find out more and see an example click http://www.corelogic.com.au/media-maximiser/
* Kylie Davis is the Head of Real Estate Solutions at CoreLogic.