Worked Cost Examples and Checklists
Property marketing costs: what vendor-paid advertising buys and how to control it
What goes into a real estate marketing campaign in Australia, who pays, when it is payable, a worked budget comparison and the agreement clauses that decide your risk.
Most Australian sellers pay for their own marketing campaign through vendor-paid advertising (VPA), separate from the agent's commission. A campaign usually combines property portal listings, professional photography, a floorplan, a signboard, and sometimes video, print and social media advertising, plus optional styling. The key facts to pin down in the agency agreement are the itemised amount, when it is payable and whether it is payable even if the home does not sell. In the illustrative example below, a premium campaign costs $7,200 more than a standard one; it pays for itself only if it lifts the price by more than about 0.8% on a $900,000 home.
This guide belongs to the net sale proceeds worked example section. Commission is covered in commission structures compared.
What a campaign typically includes
| Item | Purpose | Notes |
|---|---|---|
| Portal listing | Main source of buyer enquiries | Higher listing tiers give more prominent placement for a higher price |
| Photography | First impression on the portal | Twilight or drone shots cost extra |
| Floorplan | Lets buyers check layout and size | Usually a small part of the budget |
| Signboard | Local buyers and neighbours | Photo boards cost more than plain boards |
| Video or virtual tour | Interstate and busy buyers | Optional |
| Print and letterbox | Local reach | Declining but still used in some areas |
| Social media advertising | Targeted reach | Spend can be set and capped |
| Styling and furniture hire | Presentation of a vacant or tired home | Charged per week or per campaign |
| Auctioneer | Runs the auction | Sometimes included in commission |
Marketing prices are set by suppliers and agencies, not by law. Ask for each line as a dollar figure.
Worked comparison: three campaign levels
Illustrative budgets for a $900,000 house:
| Item | Basic | Standard | Premium |
|---|---|---|---|
| Portal listing | $1,600 | $2,900 | $4,400 |
| Photography and floorplan | $600 | $900 | $1,400 |
| Signboard | $300 | $500 | $700 |
| Video | — | $600 | $1,200 |
| Social media | — | $400 | $1,000 |
| Styling (vacant home, 6 weeks) | — | — | $3,800 |
| Auctioneer | — | $700 | $700 |
| Total | $2,500 | $6,000 | $13,200 |
Premium minus standard = $7,200. Does the extra spend pay?
- To recover $7,200 the premium campaign must add at least $7,200 to the price, before commission.
- At 2.2% commission, each extra $1 of price leaves you about $0.978. So the price uplift needed = $7,200 / 0.978 = $7,362, or 0.82% of $900,000.
If styling is dropped from the premium list, the extra over standard is $3,400, and the break-even uplift is $3,400 / 0.978 = $3,477, about 0.39%. Ask the agent what evidence they have that the extra spend changes the price for homes like yours, not homes in general. The marketing questions to ask at interview are in how to choose a real estate agent.
When marketing is payable
Agency agreements usually choose one of these:
- Upfront or within a short period of signing
- At settlement, deducted from the deposit or proceeds
- Deferred through a third-party "pay later" provider, which may charge interest or fees, and which is payable even if the sale falls over
In most agreements marketing is payable whether or not the home sells. If the campaign fails and you change agents, you pay for the first campaign and probably a second. Get the payable-if-unsold position in writing.
Rebates and conflicts
Some agencies receive rebates, discounts or commissions from advertising providers. State agent laws generally require the agent to disclose these to you; for example, NSW and Queensland agency rules require disclosure of rebates or benefits. Ask: "Do you receive any rebate or benefit from the marketing in this proposal?" A rebate is not illegal, but it should be disclosed and you can ask for it to be passed on.
Controlling the budget
- Set a cap in the agreement and require your written approval for anything above it.
- Ask for invoices, not just the agency's total.
- Match spend to the method. A private treaty sale in a slow market may need a longer, cheaper listing; an auction needs a concentrated four-week campaign.
- Stage the spend. Some sellers start with a standard listing and upgrade only if enquiry is weak.
- Keep receipts. For an investment property, marketing is part of the CGT cost base.
Frequently asked questions
Do I pay marketing if the agent sells before the campaign starts?
It depends on the agreement. Some charge only what was spent; others charge the full package. Read the clause before signing.
Can the agent pay for marketing?
Some agents include marketing in a higher commission or a flat fee. Compare total cost, not the presence or absence of VPA.
Is styling worth it?
Styling can help an empty or dated home photograph better. Apply the same break-even test: the expected price uplift must exceed the styling cost divided by (1 - commission rate).
Is marketing tax deductible?
For your own home, no. For an investment property, marketing is a cost of selling and forms part of the cost base for capital gains tax.
Official sources
- NSW Fair Trading — agency agreements, expenses and rebates
- Consumer Affairs Victoria — selling with an estate agent
- Australian Competition and Consumer Commission — consumer rights and unfair contract terms
