You are absolutely worth what you charge your client for the work to sell their house. Want to dig into the reasons, check the two lists below. Then, create your own marketing materials to present and discuss with your clients. This page gives you some tools to help provide to your clients information that substantiates your value.
With the new changes, it’s more important than ever to be sure that your client fully understands what they are paying for and what they will be getting. Determine your value as a provider of valuable services to buyers and sellers. We have provided information below that indicates the average number of hours that a typical real estate agent will expend to complete the listed task. This will help you develop a marketing plan and estimate your value. Change any numbers you believe will reflect your work methods.
Marketing Plan to Sell a House with Estimated Hours
The below indicates an estimate of hours that the average real estate agent invests in a typical real estate transaction. This will help in determining your value to clients.
1. Property Overview & Positioning – 3 hours
- Gathering property details, identifying key features, and defining the target audience.
2. Pricing Strategy – 4 hours
- Conducting a comparative market analysis (CMA) and setting the initial listing price.
3. Marketing Channels – 20 hours
- Online Listings – 5 hours: Listing the property on real estate platforms and creating a landing page.
- Social Media – 4 hours: Creating and posting content, managing ads.
- Email Marketing – 3 hours: Drafting and sending email blasts and newsletters.
- Print Marketing – 4 hours: Designing and distributing flyers, brochures, and print ads.
- Open Houses & Showings – 4 hours: Planning and hosting open houses and showings.
4. Professional Photography & Virtual Tours – 6 hours
- Coordinating with a photographer and setting up virtual tours.
5. Curb Appeal & Signage – 4 hours
- Enhancing curb appeal, placing “For Sale” signs, and managing directional signage.
6. Open House Events – 10 hours
- Planning – 3 hours: Scheduling and organizing.
- Promotion – 2 hours: Advertising through different channels.
- Execution – 5 hours: Hosting the event and interacting with potential buyers.
7. Local Partnerships & Community Involvement – 6 hours
- Building partnerships with local businesses and engaging in community events.
8. Monitoring & Reporting – 8 hours
- Tracking metrics, collecting feedback, and adjusting strategies as needed.
9. Timeline & Budget – 3 hours
- Establishing a timeline and allocating the marketing budget.
10. Closing Strategy – 4 hours
- Negotiating offers, assisting buyers through the closing process.
Total Estimated Hours: 68 hours
This estimate is a general guideline and can vary based on the complexity of the property, the local market, and the level of effort required for each task. Adjustments can be made as needed. More information to help you prepare your marketing presentation and substantiate your value to the client.
Costs and Resources Involved in the Sale of a Home
1. Licensing & Professional Fees
- Real Estate License Renewal Fees: Annual or biannual renewal fees.
- MLS Membership Fees: Access to the Multiple Listing Service.
- Association Dues: Fees for membership in professional organizations like the National Association of Realtors (NAR).
- Continuing Education: Costs for required continuing education courses to maintain the license.
2. Marketing Expenses
- Photography & Videography: Hiring a professional photographer/videographer for listing photos, videos, and virtual tours.
- Staging Costs: Fees for professional staging services to enhance the property’s appeal.
- Online Advertising: Paid ads on platforms like Facebook, Google, and real estate websites.
- Print Advertising: Costs for flyers, brochures, postcards, and newspaper/magazine ads.
- Signage: Expenses for “For Sale” signs, open house signs, and directional signs.
- Open House Costs: Refreshments, promotional materials, and any other costs associated with hosting open houses.
3. Transportation
- Auto Mileage: Costs associated with driving to and from the property, client meetings, open houses, and showings.
- Vehicle Maintenance: Regular maintenance, fuel, and insurance for the vehicle.
- Parking Fees: Parking costs when showing properties or attending meetings.
4. Communication
- Phone Bills: Mobile phone costs for calls, texts, and data usage related to the sale.
- Internet Costs: Home or office internet service for accessing MLS, communication, and marketing activities.
- Professional Email Service: Costs for a professional email service provider or domain.
5. Technology & Software
- Computer Equipment: Costs for purchasing and maintaining laptops, desktops, and tablets.
- Real Estate Software: Subscriptions to CRM systems, virtual tour software, and marketing tools.
- Data Storage: Cloud storage fees for storing documents, photos, and other listing-related data.
6. Office Supplies & Equipment
- Stationery: Business cards, letterhead, envelopes, and other branded materials.
- Printer & Ink: Costs for printing brochures, contracts, and marketing materials.
- Office Supplies: General supplies like pens, paper, folders, and notepads.
7. Professional Services
- Legal Fees: Costs for consulting with attorneys on contracts or legal matters related to the sale.
- Accounting/Bookkeeping: Fees for managing finances, taxes, and commission payments.
- Transaction Coordinator: Costs for hiring a transaction coordinator to manage paperwork and deadlines.
8. Office Space
- Rent or Lease: Costs for office space, whether home-based or in a commercial building.
- Utilities: Electricity, water, and heating/cooling costs for maintaining the office.
- Office Furniture: Desks, chairs, and other furnishings.
9. Insurance
- E&O Insurance (Errors & Omissions): Professional liability insurance to protect against potential lawsuits.
- Auto Insurance: Coverage for the vehicle used for business purposes.
- Health Insurance: Medical insurance coverage for the agent and possibly their family.
10. Client Entertainment
- Client Gifts: Small tokens of appreciation for clients, such as housewarming gifts.
- Meals/Meetings: Costs for taking clients out for coffee, lunch, or dinner during negotiations or meetings.
11. Taxes
- Income Taxes: Federal and state taxes on commissions earned from the sale.
- Self-Employment Taxes: Additional taxes if the agent operates as an independent contractor.
- Property Taxes: If the agent owns any properties as part of their business.
Expenses can add up, making it important for real estate agents to budget carefully and factor all costs into their commission structure. Managing these expenses efficiently is crucial to maintaining profitability in the real estate business. Using the free interactive calculator will help you determine your value and price your work accordingly. You can print the results and/or email them to yourself.
Don’t forget to leave comments on this page.
Real Estate Agent Annual Expenses Calculator
1. Licensing & Professional Fees
2. Marketing Expenses
3. Transportation
4. Communication
5. Technology & Software
6. Office Supplies & Equipment
7. Professional Services
8. Office Space
9. Insurance
10. Client Entertainment
11. Taxes
12. Retirement Planning
Visit our Real Estate Commission Income Analysis and enter into this analytical tool, the total of your expenses from above.