Real Estate Photography--The Business Side

I've started doing some RE photography. I had not gone after it before I moved to FL because I found most realtors to not be willing to spend the money or they didn't have the money to spend on photography. I was approached by a few agents recently so I did some shoots for them.

I'm thinking I may be able to make a few extra bucks doing this. I don't know that I could make a living at just this but it might be a nice supplemental income to portraits, etc. that I also do.

Just wondering how everyone is pricing their work. I have been talking to agents about a minimum amount for a home up to x square feet. Then I have different pricing for different sizes of homes. Haven't really gotten much pushback but I have just started.

How do you all establish a price for a particular property? Do you base it on size of property? List price of property? Something else?

Thanks.

When I was considering it. I came on to the notion of charging on a percentage of listing price. Now, we are talking 0.X%, not like 5% or anything crazy like that. Technically, it could be a $5 million property that only has a hunting cabin on it. So if you charge by size of the house you might make $50.

It is easy to find your percentage. Just go to an open house and get the info sheet that has the list price. Then as you walk around, think how much you would charge to shoot the house. Do the math and find that percentage. Go to an open house of a different kind of house and re do the math. If the percentage is close to the first. Your done. If not, try to figure out why, and adjust from there. Agents will like the percentage as they can easily figure the approximate cost on their own. And they can understand it as that is how they get paid.

I also considered a flat fee. At first it does not sound like a good idea. But you set the price for a slightly above average home in your area. The big and the little ones will balance out. But will be right on for most of what you do.

It really depends on their budget, most agents won't pay a dime because they will lose money out of pocket should the seller decide to remove the property from the market. You might be sucessful getting realtors to pay half up front and half after closing.

impact_blu wrote in post #13181711
It really depends on their budget, most agents won't pay a dime because they will lose money out of pocket should the seller decide to remove the property from the market. You might be sucessful getting realtors to pay half up front and half after closing.

Or along those lines, a base fee up front (enough to cover expenses), and then a set 0.X% of the selling price after it closes.

Great discussion. I was talking with one realtor and he was suggesting getting paid at closing. I still work in the mortgage industry (recently moved and am rebuilding my photography business so I don't have to do mortgages any longer) and I know MANY times a home may NEVER close with that realtor. So I'd be totally out of money.

I also thought about half and half. If Idid that, I'd charge a higher fee as, again, it may never close and I want to be compensated (at least) a reasonable amount. I still did the work right?

The percentage idea is interesting. I'll have to also look into that further.

My big thing is, if I'm doing the work, I expect to be paid. Realtors know the risk they take when listing a property. They will put money into it and it may not sell. They pay for advertisements, refreshments for open houses and other things. So why shouldn't we get paid up front? The problem is, getting the realtors to part ways with their money for our services.

I still think this can be done and be at least somewhat profitable. Just trying to find the best way.

Lot's of info and discussion on this site.
http://photographyforr​ealestate.net/
I would never agree to payment on closing. It's the agents job to market and sell the property. You, as a photographer, are a hired tool in their marketing plan.

You, on the other hand, need to market your product (photography) to the RE agent.

I've seen discussion on the PFRE site about the home seller paying for the photography. And, in fact, I had an RE agent mention that same concept to me. I'm mixed on that idea. As the photographer I don't care who pays me as long as I get paid. However, as a home seller, the reason I am going with an agent is so that they can handle all the dirty work. I'm paying him/her a 6% commission when they do sell my house. Why should I pay extra so the agent doesn't use his crappy iPhone shots of my home for the marketing.

Scott

scottda wrote in post #13184695
I've seen discussion on the PFRE site about the home seller paying for the photography. And, in fact, I had an RE agent mention that same concept to me. I'm mixed on that idea. As the photographer I don't care who pays me as long as I get paid. However, as a home seller, the reason I am going with an agent is so that they can handle all the dirty work. I'm paying him/her a 6% commission when they do sell my house. Why should I pay extra so the agent doesn't use his crappy iPhone shots of my home for the marketing.

Scott

Because $1000 or whatever is a drop in the bucket when you're talking about selling a $400,000+ asset. Spending $1000 out of your own pocket to have the place professionally photographed will, I guarantee it, make you at least an extra $5k on a 400,000 dollar property, and much more than that on a 1, 2, 3+ million dollar home.

I've heard it time and time again from my big agent clients. Spending the money on GOOD photography (not all RE photography is created equal...interior and architectural photography is without a doubt one of the most demanding fields) pays off. Find an agent who understands that, or pay for it yourself. Trust me.

mikekelley wrote in post #13184824
Because $1000 or whatever is a drop in the bucket when you're talking about selling a $400,000+ asset. Spending $1000 out of your own pocket to have the place professionally photographed will, I guarantee it, make you at least an extra $5k on a 400,000 dollar property, and much more than that on a 1, 2, 3+ million dollar home.

I've heard it time and time again from my big agent clients. Spending the money on GOOD photography (not all RE photography is created equal...interior and architectural photography is without a doubt one of the most demanding fields) pays off. Find an agent who understands that, or pay for it yourself. Trust me.

I agree with you, however, I also agree this is a cost the agent should pay for. They pay for all advertising, etc. on the home, why should photography be any different? This should be on of the things a good RE agent uses as an example as to why someone should use them and pay them the full 6% (or whatever they're working on) commission. They're going to do things like this and get the home sold faster and at a higher price.

Shouldn't be the homeowners' responsibility. Paying an agent 6% (or whatever you decide on) is a LOT of money at the end of the day. Most RE agents aren't working terribly hard for that commission. It's quite high if you consider how much time most agents actually put into selling a property. Yes, there are exceptions but, for the most part, they just don't work terribly hard.

I know because I've sold mortgages for 10 years and work closely with countless agents. Few REALLY good ones actually do enough to earn their commissions...

The most common ways of charging is by using square footage - setting prices for certain ranges of square footage, and per photo with a minimum number of photos set. Charging by the hour is not a good idea because you'll get faster as you get better and you also have to account for post processing time. Charging a percentage of the price may be a loser too because your price will fluctuate with the status of the real estate market. Also, getting paid at close of escrow is not a good idea. As stated above, many never close, or you may have to wait a long time for closing to occur.

I personally charge by square footage. There is a lot of good info at the Photography for Real Estate site mentioned above.

One additional point not mentioned yet - don't underprice thinking that you can raise prices as you improve. I made that mistake, and I'm still slowly moving my price ranges upwards.