Thursday, October 21, 2010

WHAT IT MEANS TO "ENHANCE" A LISTING ON REALTOR.COM

In a market where over 50% of the listings entered into the MLS today will ultimately either be withdrawn or expire without selling, it's never a bad idea to go back to the basics.

When I first meet with sellers, I review with them my comprehensive marketing plan... a marketing strategy that actually involves 71 different steps and commitments I pursue to actively market and sell your home.

One of these steps involves "Enhancing" my listings on Realtor.com.  What does that mean?  And why is it relevant?

Let's start with Realtor.com.  Although there are hundreds of sites where your home will receive exposure when you list with me, Realtor.com is the elephant in the room.  Owned and operated under an agreement with the National Association of Realtors, Realtor.com attracts a global audience of over six million unique visitors each month, and more clients start their home search with Realtor.com than any other real estate site. 

Realtor.com is also a "for profit" enterprise, which means the site makes money in two ways:  1) by selling advertising space, and 2) by selling "enhancement packages" to Realtors who want to better promote their listings.

The cost to enhance listings on Realtor.com can be steep.  Using a formula based on the median home price for a region coupled with the number of listings the agent has taken in the past 12 months, the cost for a one year enhancement contract can easily reach $1,000 or more.
So what does enhancing do?  In short, there are three main benefits.

First, the listing is displayed at the top of the search results whenever its parameters are met in a home buyers search.  If a dozen listings fit the search profile based on criteria a visitor has entered, those two or three listings that are enhanced will be displayed first, followed by the generic listings.

Second, the listing information is enhanced, with up to 25 photos (instead of four), the ability to upload virtual tours (which I always utilize) and much more detailed and descriptive property information.

The third relevant aspect of enhancing is simply that the listing agent gets proper exposure with the listing.  In other words, while the listing broker's office information will always be shown with a basic Realtor.com listing, unless that agent has paid for the upgrade package, he or she will not have their phone number, website and personal contact information attached to the listing.

From the seller's perspective, missing out on Realtor.com upgrades is a big deal.  And most seller's don't even know what they're missing.

According to Realtor.com, about 20% of agents subscribe to the upgrade package.  Which means 80% do not.  If you were sellilng a home, wouldn't asking about Realtor.com enhancements be a good question to ask?