The property market is changing. Your approach to vendor paid marketing needs to as well.
The long-overdue dip in the property market finally arrived.
Rising interest rates, mortgage pressures and increasing cost of living have signalled the end of the property boom times of the past decade, and already in the past few months, we have seen major shifts in the Australian real estate market.
In May, the number of listings sitting on the market (pay wall) for six months or more rose by 9.6 per cent in Sydney and 6.2 per cent in Melbourne, while new listings fell nationwide by 5.9 per cent, according to data from SQM Research.Â
In addition, the number of distressed listings and urgent sales rose (pay wall) nationwide by 4.5 per cent in the month of June, with a massive increase of more than 10 per cent in NSW alone.
These shifts are making many vendors far more anxious and reluctant to sell in a falling market, and as an agent, there’s nothing more challenging than an uncertain vendor.
So how do you overcome their reluctance?
By reassuring them.
A reluctant vendor is driven by uncertainty.
They’re concerned that their property won’t sell for the right price, or at all, and automatically anticipate that any money they invest in the marketing and sales campaign will be lost at a time when they can least afford it.
While these concerns are understandable, they create a negative cycle where a vendor is often unwilling to pay to effectively promote their property, inevitably impacting its saleability.
Fortunately, there are finance options that allow you, as an agent, to allay your vendor’s fears and get them to commit to promoting their property with more confidence.
With Pay On Success, exclusively from CampaignFlow, agents receive the all-important Vendor Paid Advertising (VPA) funds they need to effectively market a sale without vendors needing to front up all of the cash when their confidence in the market is low.
With Pay On Success, an agent receives the money from CampaignFlow within 24 hours, to be repaid by the vendor only in the event of a sale. It’s win-win.
By tethering the repayment to the sale of the property, you eliminate the vendor’s fears that their money will be ‘wasted’, giving them the much-needed reassurance to progress, and giving the property the promotional support it needs to secure a successful sale.
Doesn’t this lead to unmotivated vendors?
We often hear agents worrying that this arrangement creates unmotivated vendors, as it requires less overall commitment on their end.
The reality is that it does the opposite – but why is that?
Because Pay On Success is set up to attract motivated vendors.
CampaignFlow’s Pay On Success approach requires a vendor to commit to at least thirteen weeks of marketing, in addition to a dynamic upfront risk fee.
Remember, a reluctant vendor isn’t necessarily the same as an unmotivated one – as we mentioned before, they’re probably just concerned about their prospects and unwilling to commit to the cost of marketing.
But by using CampaignFlow, vendors suddenly have the reassurance and the safety net that they need to feel confident about proceeding with a sale, knowing that they won’t lose money on marketing a property that fails to sell.
The benefits go beyond the vendors as well, as Pay On Success lets agents focus more on the sale.
With Pay On Success, agents get more freedom. With financing taken care of, you can devote more time towards attracting buyers and focusing on the sale, and less time trying to get a reluctant vendor across the line.
The other great thing about CampaignFlow is that it gives agents the flexibility to scale up their property marketing without any further initial investment from the vendor, eliminating those tricky conversations that always start with: “So, we need some more money”.
Essentially, CampaignFlow provides you, as an agent, with so many benefits, including:
- You can win more property listings with Pay On Success – as discussed above, resolving vendor reluctance is the key to more conversions.
- Stand out from competing agents – not everyone offers CampaignFlow or Pay On Success, which means you have a relevant point of difference and better value proposition that offers reassurance to insecure vendors when other agents can’t.
- Upsell the marketing for better results – again, as mentioned, CampaignFlow allows vendors to pay for marketing after the sale, essentially turning an upfront cost into a smart investment. More marketing means more competition, which ends up in a better sale result.
- Align your process with the vendor’s goals – by allowing vendors to pay for marketing costs after the sale, you’re able to collaborate together towards the successful sale as opposed to negotiating against each other about how much to spend on the property campaign.
Pay On Success helps smart agents win more listings – especially in tough markets
Unique to CampaignFlow, Pay On Success is one of the best tools you can have on hand as an agent in a shifting property market.
With CampaignFlow, you can offer your vendors the reassurance they need to overcome their reluctance and commit to a sale while giving yourself the freedom to market a property in the best way you see fit.
If you’ve been experiencing an uptick in reluctant vendors over the past few months (something that is likely to continue, given the market), make the smart choice and choose CampaignFlow for your next listing.
Head over to our website for more information on CampaignFlow’s options and how to get started.
