Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Which type of expenses would likely fall under marketing costs?

1. Office supplies

2. Commissions paid to salespeople

3. Photography services for listings

4. Monthly mortgage payments

The correct answer is: Photography services for listings

Marketing costs are expenses directly related to promoting and advertising properties to attract buyers or renters. Photography services for listings are a prime example of a marketing cost because high-quality images are essential for presenting a property effectively to potential clients. High-quality photos can significantly enhance a property’s visibility in listings and advertising materials, ultimately leading to quicker sales or leases. In contrast, office supplies pertain to the general operational needs of running a business, and monthly mortgage payments are fixed costs associated with financing a property, rather than costs directly tied to marketing efforts. Commissions paid to salespeople, while important in the sales process, are typically considered as part of operational expenses or compensation rather than a direct marketing cost. Thus, photography services for listings stand out as the expense that directly supports marketing activities.