Real Estate Brochures: Do They Really Make any Difference?
February 4, 2016 | Richard Sites
In the world of real estate marketing, there is a concept known as “collaterals”. These are the hand out items given to prospective buyers and include things from brochures to pens, umbrellas, “huggies” for cold cans, refrigerator magnets and so on.
But do fancy brochures really make any difference? Here are my thoughts.
I doubt that any sale is much influenced by “collaterals”, that is all the small handouts that accompany a product or service. I think people make buying decisions based solely on the value proposition and the perceived urgency of the buying decision.
Value explains why there are crowds on Black Friday and in the basement at Filene’s in Boston. When the price is dropped the perceived value increases and people buy.
I recently stopped in the local Lamboghini dealer. While there, I asked for a brochure. I was told there were none for these cars costing around $400,000. Now, you know they could certainly produce a slick and sexy brochure if it would help but Lamboghini knows that value and desire drive sales, not fancy brochures.
But, and this is important, all other aspects of selling you a $400,000 car are professionally addressed by the dealership. The cars in the showroom are spotless, not even dust is allowed. The showroom is stylish and spotless. There is a security guard in the parking lot, albeit discreetly tucked under a shade tree and a stylish hostess who greets you when arriving. It all contributes to creating the right atmosphere but the brochure is not part of their process.
So, Mr. & Mrs. Seller do you think a fancy brochure is going to help sell your home? Well, it might. Why?
Consider the home buying process. Buyers come into town and, lacking a proper qualification process with an agent, head out to begin looking at probably way too many homes. I once had an agent tell me she had showed a couple 80 houses! So after a long day they return to their hotel room to digest the day’s activities before starting out again the following day to repeat the process.
Having a brochure with the basics and upgrades of the home, along with some great pictures, could help keep them from tossing it in the trash. A national sales trainer I know highly recommends writing something important on any items the buyers will be keeping. This makes it even harder to throw the item away.
So basically the brochure is a space holder in the folder of possible homes. Last week I stopped in an open house on the Loxahatchee River where the home is priced near $5,000,000. I was offered a 6 page brochure, one of the largest I have ever seen for a residential home priced under $10,000,000. Update: the house did not sell, the listing was given to another agent and the price has been reduced several hundred thousand dollars more.
However, even with the glitzy brochure the home had not sold and so the price was reduced by $200,000. Keeping $200,000 in your pocket is a lot more attractive to a buyer than a brochure.
So the takeaway is this: Give the buyers great pictures (especially on the Internet) and a list of features and upgrades. And present it all in a professional manner.
When the value proposition is right, buyers will buy.
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