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The Purpose of Real Estate Company or Real Estate Agent Advertising in General

Every home seller likes to be assured that their listing agent or the real estate company will run ads featuring their home.  Newspaper ads could be large display ads with lots of listings or small classified ads featuring just your property.  Ads may also appear in local real estate magazines and your listing will also show up on the Internet.

Of course the agents and companies will run ads featuring your house, but not necessarily for the reasons you would expect.

You see, the main job of advertising is not to sell your house directly.  Advertising creates phone calls and some of those callers become clients of the agents answering the calls.  This builds up a "pool" of home buyers looking for property in general, all represented by buyer agents.  Multiply this by all the agents and companies who also advertise homes, and this means that at any given time there is a large pool of home buyers in the market – all of whom are represented by selling or buyer agents.

The agents representing those home buyers know about your home because it is listed in the (MLS) Multiple Listing Service, has been on office and broker open house or preview, and because your agent may have also sent flyers to all the local real estate offices and local agents.

The agents match up their clients with available homes, one of which may be yours.  Then they show the homes to their clients, and other homes for comparison and then they eventually make an offer on one of the homes they have seen.  That is how your house gets sold.  Ads create a pool of clients, one of which may or may not buy your home.  Ads do not usually sell your house directly.  Statistics indicate that the odds of a buyer actually purchasing the home they called from the ad are less than 3.2%, or less than 1 out of 30 advertisements!  Not very good odds.

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