HOMES are sold faster and for more money when advertised in a newspaper, according to new analysis of 850,000 homes sold over the past two years. Average prices for houses increase by 8.7 per cent, or almost $50,000, in Perth when advertised in print and online compared with online alone. In Sydney, the city with...
HOMES are sold faster and for more money when advertised in a newspaper, according to new analysis of 850,000 homes sold over the past two years.
Average prices for houses increase by 8.7 per cent, or almost $50,000, in Perth when advertised in print and online compared with online alone. In Sydney, the city with the most expensive property market, the difference is on average $41,147 (or 5.1 per cent).
Similar results have been achieved in all capital cities, as seen in the table below.
With newspapers underpinning a campaign, offers come in faster that can shave seven days off the time a house or unit is on the market, according to property research company CoreLogic, formerly RP Data.
Success rates of sales also increase when a real estate agent ensures print is on the campaign schedule.
In Melbourne, the sale of a house during a campaign rises from 63 per cent to 84 per cent when it is advertised in a newspaper. The results for other capital cities are similarly dramatic – Sydney (+11 per cent), Brisbane (+8 per cent) and Adelaide (+6 per cent).
CoreLogic studied the sales history of 850,000 houses. The company’s analysts investigated where each property was advertised, its time on the market, the offer price and the value of the final deal.
The data also shows the depth of discounting decreases when properties are advertised in print, especially at the premium end of the market, says CoreLogic’s head of solutions, Greg Dickason.
The research is the first from a non-newspaper publisher that provides statistical evidence of the value of print.
CoreLogic decided to undertake the project to better guide real estate agents on how to structure a media campaign to maximise the price of their client’s home.
Mr Dickason says the research should end any reluctance by a home owner who might not believe that marketing helps sell their asset faster and for more money.
The data has been collated to create an industry service called Media Maximiser, which tags almost every property that comes on to the market with its original price, where it was advertised, when it went on the market and was finally sold, and the difference between the asking price and the final deal.
It has given publishers further evidence that print is still a powerful tool.
Since last year, Fairfax Media’s property portal Domain has run advertising in its newpapers and websites that highlight that 3 out of 4 vendors use print to sell their home. News Corp Australia has used the CoreLogic data as a basis for a marketing campaign promoting how a mix of print and online advertising results in a higher price for vendors and a quicker sale than online alone. Metro Media Publishing, which was taken over by Fairfax this week and is to be consolidated into Domain, also plans to use the research for trade marketing and to arm its agents with the right knowledge to effectively market a home.
CoreLogic’s Mr Dickason says: “We can see where a local newspaper has 80 per cent of listings in its area, and the missing 20 per cent; and then we analyse the sales cycle of all these properties. Those who list in a newspaper sell faster, or they sell with a lower discount.
“You can then measure the impact of a newspaper and portal on the selling success of a property.”
Mr Dickason says there are three factors that determine a successful sale:
· Whether a buyer is found
· Time on the market; and
· Any price reduction to strike a deal
As shown in an example of a Media Maximiser analysis below, property in the inner-west Sydney postcode of 2046 achieved an average 8 per cent jump in success rate, was one day less on the market, and a near 5 per cent drop in discounting when advertised in the local press.
John Bongiorno, director of Melbourne real estate group Marshall White, says he takes media data very seriously. According to his company’s figures, 87 per cent of buyers look online and 68 per cent use both digital and print.
“We monitor it aggressively to get the best response from our clients. We spend millions a year on marketing,” he says. “We see properties advertised in print do much better.
“There was a house on Stuart Street in Armadale where one week we advertised online,” he offers anecdotally, “but we weren’t happy with the numbers at inspection. The next week, we put it in print and the numbers more than doubled.”
For more on How print packs a premium for real estate vendors, click here.