Let’s face it - we all know real estate advertising is about the agency brand as much as it is about the property.
But, has one of the real estate regulatory bodies (Real Estate Agents Disciplinary Tribunal) fired the first salvo on behalf of owners?
The useful weekly update to members from REINZ highlighted a recent Tribunal decision where they noted some concern about a situation where the agency did not follow an owner's instructions on advertising because it interfered with the franchise's brand. They reminded the industry, in their typical prosaic language, that it is required to act in the best interests of the client - not the agency/franchise (as noted in paragraphs 33, 36, 37 and 39 of the decision).
The traditional industry reaction will likely be fairly typical - the legal beagles will add some language in the agency agreement forcing the owner to agree to advertising formats compliant with the franchise brand.
But, is the die cast?
Traditional advertising has always been about the agency, not the property. Look at the Property Press - in reality an agency/agent profile magazine, not a buyer's publication. It is organised by agency and even by agent - not by location or property type. Let’s face it - if hard copy magazines and newspapers were focused on buyers they would arrange the advertising by location/price/type not by agent. You don’t buy an agent, you buy a home!
The internet is destroying the traditional approach. TradeMe and Realestate.co.nz allow the buyer to arrange the search based on their own criteria. The searches are all based around the aspects of the property - location, price, features (eg bedrooms). Just the way it should be. You have to really work to search by agency or agent! The typical buyer is not interested in that, so the online sites don’t cater for it.
The reason hardcopy Real Estate advertising is dying? Firstly, it does not cater to its audience - the buyer. It is focused on the real beneficiary - the real estate agency. Secondly there is a mismatch - the agency’s goals are not totally aligned with person ultimately paying for the advertising - the home owner!
Goodness me, advertising focused on selling the home, designed to be attractive and useful to buyers, who cares about the agency. What a concept!
by Grant Wakelin
12 th October, 2012
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