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1
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=
=
ADVERTISING
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2
ADVERTISING
Advertising is the process of calling peoples’ =
attention to som=
ething
to arouse a desire to buy or obtain more information about the product or <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>service being
promoted.
Real estate advertising may be divided into two =
major types:
=
;
instit=
utional
advertising
specif=
ic
advertising.
3
=
Institutional
advertising attempts to create a favorable image =
of the
real estate company, the broker and the salesperson.
Specific advertising, also called operational <=
/b>advertising,<=
/b> is concerned wi=
th
immediate results. It describes a particular piece of property and stimulates activ=
ity in
a specific property or an entire tract of homes.
4
THE
AIDA APPROACH
The main reason for advertising is to
find ready, willing and able buyers.
Attention—The first step in any type of =
advertising is t=
o gain
attention. Attention get=
ters <=
span
style=3D'position:absolute;top:33.33%;left:0%;width:86.53%;height:17.33%'>=
include headline=
s that
use words and word combinations as well as print and layouts that =
attract prospect=
ive
buyers and encourage them to read further.
5
<=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>I<=
/span>nterest—<=
/span>The ad should ar=
ouse
interest in the specific product or service offered. Probably one of =
the best ways to
arouse interest is through curiosity.
Curiosity can be stimulated by ensuring that the =
ad allows the re=
ader
to imagine using and enjoying the benefits of the product or service.
6
=
D<=
/span>esire—Once the reader’s
attention is attracted and his or her interest is aroused, the ad can =
create desire by
appealing to the senses and emotions. At this
stage, language must be clear and concise and inspire the reader’s confidence.
Action—Finally, the ad should move readers to =
take action.
7
The action desir=
ed by
a real estate advertisement is either a phone call, e-mail or fax to you or your office or an act=
ual
visit to your office, an open house or a project or a visit to your website for <=
/span>pictures and more
information.
8
1. Advertise the right property=
.
2. Know when to advertise.
3. Choose the right market.
4. Use the proper media.
5. Use correct advertising techniques.
9
In determining media choice, the advertiser must begin with three basic considerations:
1. The target audience to be
reached
10
Because the message cannot contribute to sales until prospective
buyers are exposed to it, the message must be delivered within sight or earshot <=
/span><=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>of such prospect=
s.
11
In determining the media to be used, ask yourself <=
/span><=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>the following two
questions:
1. What are my marketing
goal(s)?
To ge=
t more
sale listings?
To at=
tract
more potential buyers.
To in=
crease
market share?
To en=
hance
recognition of name?
To enh=
ance
recognition of professionalism?
To se=
ll
listed properties?
12
2. Which specific media will re=
ach my
target <=
span
style=3D'position:absolute;top:11.25%;left:4.3%;width:91.57%;height:6.5%'>=
audience?
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13
PERSONAL ADVERTISING
=
3;
Personal adverti=
sing
should start with a name tag identifying you as a real estate professional.
=
3;
It should use the same color as your office signs <=
/span>=
and business
cards.
=
3;
If you are a Realtor®, the title should be on your =
=
name tag.
14
Your personal advertising should include your business card=
.
You want people =
to be
able to identify your card among a group of cards. The easiest way to <=
span
style=3D'position:absolute;top:48.51%;left:0%;width:98.36%;height:25.74%'>=
accomplish this =
is
with your photograph on the card.
<=
span
style=3D'position:absolute;top:0%;left:0%;width:100.0%;height:50.98%'>Your card should
include your e-mail address, fax number and cellular telephone number.
15
It is a good idea to print out copies of your resume with your photog=
raph.
You can give them to prospective buyers and sellers as well as use them =
as an enclosure =
with
mailings (both regular mail address and e-mail address).
=
Some agents have=
their
own Internet sites, which include personal information as well as =
information on
property they are offering, frequently with links to other sites.
16
NEWSPAPER ADVERTISING
=
3;
Newspapers are t=
he
oldest advertising medium in the nation and the keystone of the real estate <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>business. Because of their tremendous circulation, =
newspapers reach=
all
classes of consumers and are considered by most licensees to be one of the more =
effective medias=
. One of the drawbacks to this =
form of advertis=
ing is
that its effective life span is short.
17
<=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>All forms of new=
spaper
advertising are important, but the most common form used in the real estate <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>business is stil=
l classified
advertising.
Your classified ad should indicate an Internet =
address that off=
ers
more information and/or additional properties.
18
Adjectives.
The use of adjectives to paint word pictures of =
features can enh=
ance
the readers’ interest. It =
generally is fal=
se
economy to write barebones ads in a competitive market. Often an ad that is 20 <=
span
style=3D'position:absolute;top:39.5%;left:5.24%;width:99.43%;height:6.5%'>=
percent longer b=
ecause
of the use of adjectives earns a response rate that far outweighs the 20 percent higher ad
cost. A response increase =
exceeding 100 pe=
rcent
is not uncommon.
19
![](3D"slide0016_image004.gif")
Lazy Owner Condo
($229,500)=
3;
Not a thing to d=
o in
this, like new 3 BR unit in Cerritos=
. See why—check www. cerritosrealty. com.
=
3;
Cerritos Realty<=
span
style=3D'mso-spacerun:yes'> 476-8200
20
![](3D"slide0038_image005.gif")
Bill Didn’t Know
=
3;
That he could bu=
y a [3
BR Home] with less than $2,000 down. Full price—[$418,500].
=
=
3;
See what Herman =
missed
at
www. cerritosrea=
lty.
com.
=
3;
Cerritos Realty<=
span
style=3D'mso-spacerun:yes'> 476-8200
21
![](3D"slide0039_image006.gif")
$298,000
Excuse Not To Buy
=
3;
[3 B=
R,
2-bath]. In with less than [$2,00=
0] down in [West ha=
ven].
With some unusual
feature. Check them out at www. Cerritos. Com.
Cerritos Realty<=
span
style=3D'mso-spacerun:yes'> 476-8200
22
DISPLAY ADVERTISEMENTS=
=
3;
Disp=
lay
advertising may be either institutional or operational in n=
ature.
It may combine the two, so that it is used primarily to build goodwill and <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>prestige and kee=
p the
name before the public, while at the same time advertising a specific =
property. We suggest you i=
nclude
an Internet address in a display ad, which can offer additional =
information.
23
Most people read from the upper left corner to the lower right
corner. Therefore, the ad should =
be composed with=
the
heading on top, illustration and copy in the center and firm name =
and
phone number in the lower right quarter.
24
If reproduced well, photographs may be more =
effective than
drawings, but most photographs require professional retouching to increase =
contrast, remove
distracting features and blur backgrounds.
Include white space.
White space emphasizes the message.
One large pictur=
e is
generally more effective than several small pictures.
25
Don’t use more t=
han
two typefaces in an ad.
Ads in the outside columns will generate more =
interest than ad=
s in
the inside columns.
Typefaces with serifs (the fine lines at the end of =
letter strokes) =
are
generally more readable than sans serif typefaces (without the lines).
26
Lowercase letter=
s are
easier to read than capital
letters.
letters.
Short sentences =
are
more readable than long
sentences.
27
Short words are more readable than long words.
If you pull the =
reader
through the first three lines, he or she is likely to read the entire ad.
Use words that a=
re
readily understood.
28
Don’t be too subtle or sophisticated.
Always tell the =
reader
what to do (call, come in or check the Internet).
Always use the s=
ame
logo in your ads.
29
MAGAZINE ADVERTISING
=
3;
The cost of
advertising in a magazine having mass appeal generally=
is
prohibitive. However, =
magazines appeal=
ing to
special interest groups could be productive for the right property.<=
/div>
30
RADIO AND TV ADVERTISING
=
3;
Comp=
ared
with print media, radio broadcasting is a relatively new
advertising medium but is expensive. 31
FOR SALE SIGNS
=
3;
The design of a
licensee’s For Sale signs should be unique, original, quickly informative and as =
attractive as
possible. The attention getting <=
/span>value of the sig=
ns
will be enhanced through the use of color, unique design, an identifiable logo, =
and type and siz=
e of
print. 32
DIRECT MAIL
=
3;
Although =
direct mail advertising is =
rather
expensive
per contact, it can be an effective way to reach a selec=
tive
audience. It may be institutional in
nature or be designed to promote a new subdivision, an area, even a specific piece of property.=
33
DIRECT E-MAIL
=
3;
We have shown you
several ways to obtain e-mail addresses of prospects and we will be
showing you more. Direct appr=
oach
e-mails can include colored pictures, movements (motion) and even =
sound. Like any other advertising, you want =
your direct mail=
and
e-mail ads to stand out from the commonplace.34
NEWSLETTERS
=
3;
Many offices, as=
well
as individual agents, successfully use newsletters. They include =
information that=
would
be of interest to the recipient as well as information about the firm or =
=
agent.35
Truth-in-lending applies to credit extended with a =
=
finance charge or
credit payable in more than four installments. If =
the
amount or percentage of down payment, the number of payments or period of repayment, or the
amount of payment or amount of finance charges (trigger terms) is included in <=
/span><=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>any advertisemen=
t,
then the ad must include these three elements:
36
=
=
1.Amount or percentage of down payment
2.Terms of repayment
3. Annual percen=
tage
rate (APR) (the true interest rate considering points and other loan costs; the nomin=
al
rate is the rate stated on the note)
37
ANNUAL
PERCENTAGE RATE
APR (Annual perc=
entage
rate is the interest rate needed to pay off the net loan (contract loan less =
=
the cost of the =
loan,
[points and loan closing costs]), fully amortized using the
payment and length of the contracted loan.
38
The APR must meet c=
ertain
precise figures, if the lender is audited:
1. For fixed rate loans the APR must be equal to or les=
s =
than 0.125%
(1/8%) of the true APR.
<=
/span>
2. For A=
RMs
the APR must be equal to or less than 0.250% (1/=
4%) of
the true APR.
39
=
=
With
the calculator or computer it is very simple to calculate the
APR. You must have the =
following
information:
1. Loan Amount
2. Interest Rate
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3. Term of the Loan
=
4. Points
5. Total Closing Costs
40
Example:
=
Mrs.
Annual P. Rate gets a loan from Dowe Cheat–N–Howe Mortgage Co. for $200,00=
0 at
7% amortized over 30 years.
She pays 2 points and $4,000 inclosing costs.
41
![](3D"slide0066_image009.gif")
Mortgage Co.
Annual P. Rate
11110
E. Alondra Blvd.
Norwalk, CA 99999
Norwalk, CA 99999
=
APR FC AMT
TOT
=
;
7.409% $279,160 $250,000 $479,160
Do–we Cheat–N–Howe Mortgage Co. will =
provide her with=
the
following statement:
42
TELEPHONE DIRECTORIES
=
3;
Although real es=
tate
firms have yellow page listings, often in bold type, display ads in =
telephone direct=
ories
are not likely to be as cost effective as those in other advertising media. The effectiveness of your yellow page ad =
can
be increased significantly by use of your Internet <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>address, for exa=
mple,
“View Available Homes www. cerritos. com.”43
PRESS RELEASES
=
3;
Press releases a=
re
really free advertisements. If <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>you look in the =
real
estate section of any newspaper, you will find that most of the articles =
<=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>are press
releases. Your local newspaper wi=
ll publish press re=
leases
that are well written, typed double spaced and have a newsworthy message. 44
Some examples of such messages are the grand opening of an of=
fice,
the groundbreaking for a development, the listing of a historic building, any sale where t=
he
buyers or sellers are newsworthy, special awards or designations <=
span
style=3D'position:absolute;top:36.25%;left:5.24%;width:90.07%;height:6.5%'=
>received by agen=
ts,
and office promotions.
45
SPECIALTY GIFTS
=
3;
Most offices inc=
lude
specialty gifts, promotional giveaway items, in their advertising budget. These =
may include note=
pads,
maps, magnetic holders, calendars, pencils, directories and pens with a salesperson’s an=
d/or
firm’s identification. Such =
items promote yo=
u or
your company continually and can be dispensed through the office, at =
=
business and soc=
ial
gatherings, at open houses and during door-to-door canvassing. They are <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>excellent door o=
peners
and can be used effectively to get acquainted in a neighborhood.46
THE
INTERNET
=
3;
The Internet is
rapidly growing in importance as a marketing tool. T=
oday,
some offices are reporting that about 25 percent of their contacts result from =
Internet posting=
s.
Surveys of property buyers reveal that in many areas over 50 percent of the =
buyers indicated=
that
they utilized the Internet for their property search.47
One advantage of the Internet is its relatively low <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>cost once the si=
te has
been established. However, the Internet can=
not be
used effectively as a sole advertising medium because buyers and sellers need to know of =
the
existence of the site which can be included in your advertising in other media.
48
While agents can prepare their own web pages =
using one of the
inexpensive web page programs, these are usually boilerplate sites and fail to <=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>provide maximum =
viewer
impact. As previously stated, we stron=
gly
suggest that a professional web page designer create the web site.
A correctly desi=
gned
website can insure long term use and will attract prospective buyers, sellers, <=
/span>=
lessors and less=
ees.
49
LEGAL IMPLICATIONS OF <=
span
style=3D'position:absolute;top:15.25%;left:4.3%;width:91.57%;height:8.25%'=
>ADVERTISING
=
3;
Advertising of r=
eal
property is regulated by the California Real Estate Law, the Regulations of the =
<=
span
style=3D'font-family:"Century Schoolbook";font-size:156%'>Real Estate
Commissioner and the Federal Consumer Protection Act (Truth-in-Lending Act).50
CODE OF ETHICS OF THE <=
span
style=3D'position:absolute;top:13.25%;left:4.3%;width:91.38%;height:8.0%'>=
NATIONAL
ASSOCIATION
OF REALTORS®
=
Even though the =
Code
of Ethics of the National Association of Realtors® is a moral code and as such is not
enforceable by law, its guidelines are observed by most=
real
estate licensees in the state. 51
Professional courtesy and ethics should not end =
with those acts =
that
have been sanctioned by law. The individual who tries only to stay on the border of the la=
w may
at some time step across that border.
52
TRUTH-IN-LENDING ACT
53
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