Real Estate Agent advertising…what to believe?
Lately we have started to hear more realtors with ads on the radio and some now taking out billboard space. If you are like me, when someone says something, you want to believe what they are saying is true. This is not always the case. In some cases, the truth gets stretched a little bit…or a lot!
On some recent radio ads, one agent (and no we won’t name names) claimed that he sells seventeen times more homes than the average agent. This same agent also went on to say that his clients made $50,000 more on the sale of their homes than other agents. Let’s address the first comment that the agent made. To say that he made “X” amount of sales over the average agent is less impressive than it may sound. Why? Well for one, the “Average” agent doesn’t make a lot of money in this business and doesn’t sell many homes. Remember, there are many part time agents in this business. And one thing you should realize is that NONE of these part time agents will ever tell you they are part time! The fact that the agent on the radio is comparing himself to “average” agents should tell you something. Maybe that this agent isn’t being totally honest with you by not telling you the facts. The second comment that he makes is that his clients make on average $50,000 more on the sale of their home than other agents. Well… this is simply NOT true. I and many others reported this false claim to the real estate board. This agent would have to be selling $1,500,000 or higher priced homes for this to even be a realistic comment. If I had to guess, I would say this particular agents average home price is $350,000 to $400,000. Do you really believe that the buyers agents representing the buyers are letting their client overpay by $50,000 every home?
How about billboards? I was driving out Hwy 26 this weekend and saw a local broker with a billboard ad that stated they were “#1 in Luxury Homes!” The problem with this ad is that it is not honest. If you look at the luxury home market as a whole, this brokerage firm is probably not in the top 5 for luxury sales. If you look at the areas in town where there are the most luxury homes, Lake Oswego , Dunthorpe, West Linn and the West Hills… you will rarely see sales by this brokerage. If you look at a map, and narrow down to the tiny area of Bethany… yes, this brokerage firm has some luxury home sales! Is this billboard being honest? Would I have more respect for this firm if the billboard said “#1 in luxury home sales in Bethany” Yes, but to try to fool the public like this is just wrong!
Bottom line… honesty! Like any business, it all starts with honesty.