You’re a property agent generating real estate leads online. You generate a decent amount of leads, of which you manage to book a few appointments with. But out of those appointments, how many sales have you been scoring? And are you satisfied with the conversion rate?
Well, if you want more leads, you may argue you can always run another campaign.
Spending more to get more sales is common in marketing, and most businesses don’t care as long as they’re selling, even with a very low conversion rate. But unfortunately, it’s inefficient and unsustainable in the long term, given real estate lead conversion is much higher than you think.
Now, the question is, what is a realistic real estate lead conversion rate?
Knowing the potential real estate lead conversion rate will allow you to know how you’re doing, and more importantly, how much more opportunity there is to grow your sales. In this article, we explain why the real estate lead conversion rate is way higher than you may think and what you can do to achieve higher conversion.
What percentage of real estate leads actually convert into buyers?
Let’s first keep in mind that you’re one of many real estate agents competing in the same market. Therefore, statistically, the vast majority of transactions will go through someone else. Now, if you look at how many of your leads actually make a real estate purchase within the next couple of years, you’ll best understand the conversion rate of real estate leads. They don’t necessarily have to make the transaction through you.
Let’s do the math:
Average People buy two houses in a lifetime, usually between the ages of 25 and 65, meaning the average person buys a house every twenty years. In other words, out of a random 100 people in the target age group, an average of 5 people buy a house every year, or 10 people purchase every 2 years.
When you’re generating real estate leads online, you have the information of potential customers genuinely interested to buy or rent properties. Therefore, you should expect a much, much higher conversion rate from this group.
In reality, the real estate lead conversion rate is much higher than you anticipate. It can be up to 40% or even higher within a 2-year period.
If your conversation is 1 or 2 out of a hundred, you’re missing out on a lot of potential customers. But it doesn’t mean you can’t improve your conversion rate. If you consider a few important things and follow the right practices of a real estate sales process, it’s actually easy to convert an amazing number of leads.
How to improve your real estate lead conversion rates
Now that you know a large number of real estate leads actually make a purchase within a certain period, you may want to know how to capture more of these transactions. Here’s a list of a few tips and best practices you can follow to drastically increase your real estate conversion rates.
Nurture each lead
In real estate, almost all your leads are your potential customers because they’re either planning to buy a property very soon or they’re looking forward to it in the future. They will buy a property at some point in their life, meaning even though they don’t purchase from you this time, they’ll remain your prospects for years to come. Unfortunately, most property agents don’t understand this. As a result, they ignore the leads that haven’t converted after a campaign is over, run another campaign the same way, and lose many potential customers in the process.
If you’re running your sales process this way, you’re missing out on a lot of potential customers who will eventually buy from your competitors. But the good news is that more leads will end up converting if you take them seriously, manage their data appropriately, follow-up properly, and communicate effectively, albeit after months or sometimes years.
You may not be excited about sending a new message to old leads but keeping in touch with them is fairly easy. They know who you are and why you’re messaging them. Let them know about the latest benefits you’re offering at times. And why not also send them personalised festive greetings if appropriate?
Improve your outreach
Proper outreach is crucial to get the attention of your leads at the right time. It also contributes to opening up a conversation and finally converting them. Once you generate leads, the first thing you should do is message them fast. Reach out to your leads within the first 15 minutes of them submitting their information for the best chances of getting a response.
How you compose your introductory message also plays a great role in getting a lead’s response. For instance, people are more likely to ignore random promotional-looking messages as they receive such messages every day and find it annoying. Make sure you have personalised introductory messages for each of your leads so they know why they are receiving your message.
Your messages should be clear and concise. Plus, you should address each query of your leads in a simple and understandable way. More importantly, you should ensure that your messages look like they are genuinely helping the prospects. Therefore, talk less about your products and company and more about how they are specifically built to solve the customer’s issues.
Read this article if you’re looking to create effective introductory messages.
Use the right communication channels
Using appropriate communication channels to contact leads makes sense if you’re looking to contact them as fast as possible. After all, the right channel ensures the prospects view your message at their soonest convenience. Today, more people prefer using mobile messaging apps such as WhatsApp, iMessage, and SMS over other communication channels like emails. Therefore, you’ll want to communicate with your leads on these platforms.
However, the preferred communication channel may also be unique depending on your target audience. If you’re an agent providing office spaces to B2B clients, your leads may want to see your message on their business email inbox rather than personal messaging apps. That’s why it’s really important to know your target audience. Choosing the right communication channel is essential for timely and effective communication.
Also, get updated with the communication preference of your target audience to ensure you’re doing it correctly. A few years ago, the preferred communication channel was a phone call, today it’s messaging apps like WhatsApp or iMessage. It’s only a matter of time before something new becomes popular. The most important thing is staying relevant and keeping up-to-date with modern communication technologies. It affects your first outreach and with it, a chance to include your leads in your sales funnel.
Manage your leads effectively
Real estate leads and their data can be useful for years. You could be communicating with your leads for months and even years before closing a sale. Therefore, it’s really important that you manage your potential customers’ data effectively. It includes not just storing data appropriately for easy access but also managing a proper follow-up schedule.
Lead generation sources don’t store your leads for a long time. For instance, if you’re generating leads via Facebook Lead ads, it only stores information for 90 days. You need to build your own system to manage leads effectively.
Depending on how many leads you receive, you have different options to manage your leads. If you receive fewer leads, you can use good old spreadsheets, such as Excel or Google Sheets. However, if you receive hundreds of leads every month, you may need a more sophisticated tool or CRM to manage them.
One of the advantages of having a proper CRM is that apart from managing your leads perfectly, it automates many tasks that take a lot of time. However, keep in mind that not all CRMs and tools are built for the same purpose. Some only transfer data across platforms while others are built for specific devices. If you’re a business with a small team and limited technical knowledge, you’ll want a system that’s easy to use and works on your smartphones. Privyr is a great example of such a tool.
How Privyr helps you convert more real estate leads
Even though you know the best practices to convert more real estate leads, integrating them to your system can be really hard, especially if you’re handling things manually. For instance, even a tiny task such as manually downloading and managing leads generated online is really tedious and takes a lot of time and effort. You’ll never be able to contact your leads on time this way. As a result, you’ll lose many leads without hearing back from them. This is where Privyr comes.
Privyr helps you perfectly manage all the best practices you need to convert your leads. For instance, it automatically downloads your leads from lead sources in real time. Also, once you receive leads, you can send them personalised messages on popular messaging apps within 5 seconds within a few taps because the tool also integrates with popular mobile messaging apps. This way, you don’t just contact your leads quickly but also write and send them impressive messages on appropriate channels.
Moreover, Privyr lets you store your data in your account for as long as you like, meaning you can access your prospect’s information anytime you want. It also helps you manage an effective follow up schedule, so you’re always in touch with all your leads without missing none.
Privyr is a mobile-first CRM you can learn to use in under a minute. It works on all devices including laptops and smartphones. If you’re looking for an easy sales productivity tool to help you improve your real estate lead conversion rate at an amazing rate, try Privyr for free today.