Alison Hillm…, Other/Just Looking in San Francisco, CA

Who pays for the marketing budget when selling a property?

Asked by Alison Hillman, San Francisco, CA Tue Feb 19, 2013

Help the community by answering this question:


Kawain Payne’s answer
Hello Alison,

The listing agent will pay all initial costs associated with the marketing of the property.

The agent will have taken the cost in marketing the property in account when they agree upon a commission percentage when the listed is taken..

The cost to market the listing is recovered by the listing agent when he/she recieves their commission at the close of escorw.

Kawain Payne, Realtor
1 vote Thank Flag Link Wed Feb 20, 2013
It depends on what the listing agreement says. I've sold several tracts of land and luxury properties for which the seller paid an up-front fee for marketing costs in return for a reduced commission rate. This ensured that the seller got the high-end marketing program they wanted and I shared the risk of blowing a lot of my own cash on up-front marketing costs for what was anticipated to be a lot of days on market before receiving a good offer (the commission discount is tied to a time value of money analysis).
This strategy works best when the luxury property is one that will be hard to sell, which many are.
1 vote Thank Flag Link Tue Feb 19, 2013
Generally speaking, Realtors pay for it out of their commission but there's no hard and fast rule about this. Different arrangements can be made.
1 vote Thank Flag Link Tue Feb 19, 2013
As noted below, usually the listing agent takes care of any fees associated with marketing the property except for staging, which the seller usually pays for.

I have a question. How come you are the only asking questions in San Francisco?
1 vote Thank Flag Link Tue Feb 19, 2013
Let me add just another voice saying the listing agent pays for marketing and the Seller normally pays for staging. But everything is negotiable!


0 votes Thank Flag Link Wed Feb 20, 2013
Usually speaking the listing agent covers the marketing expenses from the commission amount. That means an upfront investment in marketing from the agent side, hoping that the property will sell within a reasonable period of time.

Sellers pay for staging, painting and generally speaking preparing the property for the market. They also pay for the mandatory CA and SF reports and compliances.

Alina Aeby-Broker Associate
Pacific Union International/Christie's
0 votes Thank Flag Link Tue Feb 19, 2013
The Realtors pay for the marketing unless some other agreement has been made. This is paid for out of their commission.
0 votes Thank Flag Link Tue Feb 19, 2013
The listing agent and listing brokerages pay for a suite of marketing activities that they have established as working. If the seller wants something specific they can ask. Fact is we ususlly do what works in the area that the property is situated.
The brokerage and the agent derive benefit from the marketing also.
0 votes Thank Flag Link Tue Feb 19, 2013
Jed Lane, Real Estate Pro in San Francisco, CA
General marketing is normally paid by the listing agent and should be outlined by the agent during the listing meeting. Anything additional or out of the ordinary an agent can certainly help with and is negotiable.
0 votes Thank Flag Link Tue Feb 19, 2013
The listing broker is expected to market the property including the price of photos and flyers. An owner can be expected to pay for staging and needed upgrades.

0 votes Thank Flag Link Tue Feb 19, 2013
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