Dollar for dollar, classified advertising and small space ads are the advertising medium of choice for the real estate industry. The reasons are convenience, immediacy, and profitability. Your local newspaper is usually the first place an interested buyer or seller will turn when they get the urge to research the market because a copy is usually right at hand. Classified ads are immediate. If the ad doesn’t generate a profitable return... you can have it changed, in many cases, overnight.

In the literal world, classified ads are inexpensive compared to direct mail, telemarketing, full color brochures, and display ads. In the virtual world, you can post any number of classified ads on hundreds of web sites absolutely FREE. Plus, people do not read classified ads for pleasure. The only time normal people (as distinct from marketers) peruse the classifieds is when they are in the market for something.

So let's get about the business of designing a few winning, lead generating ads for both off line and online placement, shall we?

Leads are the Name of the Game

It is very unlikely that you will ever secure a property sale or get a signed listing as a direct result of a small classified ad. It just isn't going to happen. With that in mind, your goal when designing ads is simply to generate a lead. Nothing more, nothing less. To secure leads, your ad:

Must be seen by potential prospects, and

It must cause them to react in some way.

Your ad needs to make the reader pick up the phone, punch in a fax number, send out an email, request a report, visit your web site or stop by the office. If the ad only causes your prospect to chuckle, pause in his thinking, admire your layout, or simply to believe what you've written is true - it is not doing its job.

You must know exactly what you want your buyer or seller to do, and any ad that does not elicit the desired action is an absolute waste of time and money.

Effective ads are written according to a simple master formula:

Attract the Attention of your prospect

Maintain your prospect's Interest

Cause your prospect to Desire your offer

Ask the prospect to take an Action

Never forget the basic rule of advertising copywriting:

If the ad is not read, it won't stimulate any sales; if it is not seen, it cannot be read, and if it does not command or grab the attention of the reader, it will not be seen.

Classified Ads for Buyers

One powerful secret to get your phone to ring off the hook with interested buyers is to include the financing terms in your ads... the monthly terms or the down payment terms.

Think about it. When people are shopping for a home, they are not buying a house... they are buying the best lifestyle they can afford. And when you state the location of the property, make mention of the fireplace and the mature, tree-line streets... you are painting a lifestyle picture. Now, complete the portrait by making sure your prospects understand they can afford that lifestyle. Here's how to combine the two for a surefire, winning ad:

South Carson - $3,200 down, $848/mo! Gorgeous family home. Lovely modern kitchen. 3 bedrooms, 2 new baths. 7.25% APR. Call 555-1212. Editor's note: Several readers have pointed out that this ad as written may be in violation of Regulation Z (RESPA regulations.) The author claims it is not and will explain why in an upcoming article to be posted 1-5-2001 in Agent News.

Traditionally, most real estate agents and brokers either don't make any mention of price (hoping to elicit calls by not providing ALL the information), or they mention only the asking price: "Only $187,956! Hurry, won't last!!" but this is a big mistake! Tests have proven again and again - mention the TERMS and your response rate will double, triple, and even quadruple!

Perhaps you have yet to advertise a specific down payment or specific terms because you have mistakenly been lead to believe you can't - that it is somehow against the law or violates RESPA. Well, rest easy, it's not. The law that governs closed-end disclosure is "Regulation Z" and the Federal Trade Commission offers a wonderful explanation as to what you can and cannot advertise when it comes to "terms."

Classified Ads for Sellers

Writing classified ads to produce seller leads will often produce less results than classified buyer ads, but that's not to say it cannot be done profitably.

The key to writing for sellers is to understand that people are persuaded to act either to avoid pain (be it emotional, physical, or spiritual) or to gain pleasure (be it real or anticipatory). So you will want to design your ads to appeal to the sellers at this innate, emotional level. That is, we'll want to push some emotional hot buttons. These examples promise to move the potential seller away from loss (a pain):

7 Big Homeseller Mistakes Which Cost You a Fortune - Which of these costly homeseller mistakes will you make when you sell your home? You don't have to make any! Call 555-1212

For Sale By Owners: Don't even think about setting the price for your home by looking in here. That's the SECOND biggest mistake you can make. Want to know the FIRST? Call for your free homeseller report. 555-1212

This example addresses some homeowners' greed:

How to Sell Your Home for $3,000 to $7,000 More Than Your Neighbor! Free report reveals all.

If you're looking for specific sellers in a specific area, simply add "qualifiers" to your ad like this:

South Carson -- Sellers! New free online report gives 10 Tips to Pocketing $5,447 or more when you sell your home! Visit http://www.yourdomain.com

You get the idea. Now analyze each of these ads. Have we attracted the attention of potential sellers, have we grabbed their attention? What about the ads keep your interest? Have we stimulated a desire to want to know more about the information being advertised? And finally, have we specified the specific action we want the prospect to take? Notice how all four elements are present in the ads. Recognize and understand the basic formula. Practice, and keep at it, over and over, every day until the formula, the idea, and the feel of this kind of ad writing becomes second nature to you. This is the only way to gain expertise in writing good classified ads and generating a number of highly responsive leads fast... both online and off!

Published: December 28, 2000

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