Real Estate Newspaper Ads: Are They Worth It?  

by Greg Cryns

When I was training for my real estate license many years ago my teacher was a very experienced and 

successful broker in the Chicago area. I will always remember a statement he made about real estate advertising.

"The only people who make money when you advertise your house in the Chicago Tribune are the people who work at the Chicago Tribune!"

You might catch a lightening bolt, but generally speaking advertising your home in a major metropolitan newspaper is not very effective. The same warning applies to local home guide magazines.  

An agent might quote a report from the NAR (National Association of Realtors) that 53% of home buyers consulted newspaper ads. What they fail to tell you is how many of them bought a home without consulting the MLS (Multiple Listing Service) in their area after reading the newspaper ads.

Actually, only 5% of home sold are sold through newspaper ads alone. That is a 95% failure rate, isn't it.

Don't let this be a reason to sign a contract with a traditional real estate agent. There may be other reasons, like maybe you cannot locate a flat fee agent in your area who will help you show, provide good selling tips and guide you through the closing process. Of course, the best protection at a closing may be your attorney, though sometimes the professional real estate agent may actually know more. Sellers are conditioned to believe that newspaper advertising works.

Real estate agents do obtain three major benefits for advertising the homes of their sellers. 1. They attract more listings for their own business; 2. they attract more buyers for their own business; 3. they brand themselves in the ads.

Does placing an ad in the newspaper justify thousands of dollars in commission fees?

Probably not.

Greg Cryns is the owner of Flat Fee Real Estate Guide - http://www.flatfeerealestateguide.com