Real Estate Marketing After COVID: Why Sellers Are Losing Out as Agents Cut Marketing Budgets

The COVID-19 pandemic reshaped many industries, and real estate marketing was no exception. During the early days of the pandemic, as uncertainty gripped the economy, real estate agents across the globe slashed their marketing budgets. The extensive, polished property presentations of the past—complete with high-quality photos, 2D and 3D floor plans, immersive 360-degree tours, videos, and glossy magazine placements—became the exception rather than the rule. Today, even with the market in recovery, the robust marketing budgets of the past have not returned. The standard listing is now often limited to 25 photos and a simple 2D floor plan, reminiscent of real estate marketing practices a decade ago.

What Real Estate Marketing Looked Like Pre-COVID

Before COVID, property marketing was designed to fully immerse buyers. Sellers and agents saw the value in captivating, multi-dimensional presentations, knowing that serious buyers might be willing to pay top dollar if they could connect emotionally with a property online. Marketing materials were robust, often including:

- Professional Photography: Multiple angles and high-resolution images.

- 2D and 3D Floor Plans: To give buyers a better sense of the property layout.

- 360-Degree Virtual Tours: Enabling potential buyers to experience the property remotely.

- Video Walkthroughs: Offering a narrative-style view of the home, often set to music and featuring narration by the agent.

- Magazine and Print Ads: Showcasing luxury properties and adding a layer of prestige.

This comprehensive approach appealed to both local and international buyers, enhancing the perceived value of properties and broadening their appeal.

The Shift: A Return to Minimalism in Marketing

When the pandemic hit, real estate agents and agencies had to cut costs, and marketing budgets were one of the first to go. In 2020, with open houses canceled, virtual tours and video were still essential for some agents and markets. However, as in-person showings resumed, agents leaned toward cutting marketing costs to stabilize their expenses. Now, listings frequently consist of just 25 photos and a basic 2D floor plan. This minimalist approach may suffice for certain buyers, but it falls short of creating the immersive, emotional connection that often translates into a quick sale or competitive offers.

Who Benefits from Reduced Marketing?

1. Real Estate Agents: For agents, reduced marketing means lower overhead costs and fewer upfront expenses. This allows for more manageable monthly budgets, especially for smaller agencies or individual agents. By limiting marketing, agents may prioritize their time and resources on hot listings, assuming that properties will sell based on location or price alone.

2. Budget-Conscious Buyers: For buyers with a strict budget or those willing to buy properties “sight unseen,” fewer marketing materials might help manage expectations. For some, limited visuals and information may mean fewer competing offers, allowing them to buy at more favorable prices.

Who Suffers from the Decline in Marketing?

1. Property Sellers: Sellers have the most to lose. Without immersive marketing, they risk missing out on potential buyers who could pay a premium. Properties with poor-quality images or limited information may linger longer on the market or require price reductions, costing sellers valuable time and money. The lack of robust marketing often translates to a lower perceived property value and fewer interested buyers, making it harder for sellers to achieve their desired sale price.

2. Potential Buyers Looking for Premium Experiences: For buyers in the premium or luxury market, expectations are high. Without high-quality photos, videos, and 3D tours, buyers may overlook properties or fail to fully appreciate the value of a home. As a result, agents miss out on generating excitement and competition among potential buyers.

3. The Real Estate Market as a Whole: Fewer potential buyers in the pipeline can lead to reduced demand, slower property turnover, and ultimately a less dynamic real estate market. When properties linger on the market due to lackluster marketing, inventory builds up, potentially driving down home values and destabilizing prices.

Long-Term Impacts: Where the Industry is Heading

The return to minimalistic marketing could create a downward spiral in some markets, where homes sell slowly or for less than they might with robust marketing. Sellers may hesitate to list their homes if they believe the market undervalues their property, resulting in less inventory and a less competitive marketplace.

In a digital-first era where buyers increasingly expect instant information and virtual experiences, real estate agents and agencies may need to reconsider their approach to marketing. By re-investing in quality marketing tools—virtual tours, 3D plans, and high-quality media—agents can attract a wider buyer pool, increase property turnover, and better serve sellers. Buyers also stand to gain, with more access to detailed property information that aids decision-making, creating a healthier real estate market overall.

The post-COVID real estate landscape has shown that cost-cutting alone is not a sustainable long-term strategy. A return to immersive marketing that appeals to modern buyers is essential for ensuring that sellers get the best price possible and that the real estate market continues to thrive.