Real Estate Lead Generation has Gotten Tricky with Everything Going on in the World in 2021
Pre-pandemic, you may have been generating a few dozen leads a weekend at an open house or by door knocking your geo-farm. The new era of social distancing has likely kept those activities to a minimum. Short of buying leads from some lead generation website, how’s a super real estate agent like you supposed to generate the best real estate leads in this day and age?
The Best Real Estate Lead Generation Solution is...
Before we reveal what the best (and proven) real estate lead generation method for 2021 is, let’s review some statistics courtesy of the National Association of REALTORS®:
- Just over 5 million homes sold in the United States during 2019
- There were an estimated 60 million online leads generated in 2019
- 41% of sellers who used a real estate agent or REALTOR® found them via referral by friends or family members
- 74% of sellers said they would “definitely” use the same agent again
- 91% of buyers said they would use their agent again or recommend their agent to others
- 26% of sellers used the same agent they previously worked with to buy or sell a home
- 69% of home sellers said they would gladly write a review for their sales agent if requested
Let’s add in two additional statistics from Zillow: 52% of buyers, as well as 67% of sellers, are coming from various referrals, past experiences, and an agent’s visibility in the community.
And just for good measure, here are a couple more numbers you might find intriguing: The cost of acquiring a new customer is about five times more than retaining an existing customer. Additionally, the success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
12x MORE Leads Sold Than Total Transactions Each Year
Let’s break those statistics down into plain English — There are 12x (times) more leads sold online than total transactions each year. Both sellers and buyers, generally, love their agents and would refer them to friends or family. They would gladly write a testimonial for their REALTOR. Even Zillow, the de-facto leader of lead generation in real estate, states between half and two-thirds of all real estate leads come from repeat business or referrals. On top of that, it’s far less expensive to sell to a repeat customer — one you already worked with — or generate referrals from your existing network compared to the time and money you will spend working on converting new real estate leads.
Looking back at that NAR data mentioned above, 74% of sellers said they would “definitely” use the same REALTOR® again, and yet only 26% of sellers did. Why do you think that statistic is so low? Because their agent never stayed in touch with them.
It’s obvious — based on statistics, the best real estate lead generation in 2021 is in the form of referrals and repeat business found in your sphere of influence (SOI) and past clients. It’s also glaringly obvious that most real estate agents aren’t doing an excellent job staying in touch with their past clients or sphere.
With Real Estate Lead Generation, RELATIONSHIPS MATTER
The key to generating leads from your database is to continue the relationship you build with them during the transaction. While working together to view houses, prepare the offer, complete the contract, and do all of the tasks involved in buying or selling a house, you’re developing a bond by building a relationship. You’re talking, texting, emailing each other at least weekly, if not daily, to make sure that everything is going smoothly. Then suddenly, when the transaction is closed, like a magician in a puff of smoke, you are gone — never to be heard from again.
If it seems like a bad break-up, it probably is because that’s how it feels to your client. They need to hear from you. They WANT to hear from you. After all, you have a relationship —you were IN a relationship, right? They expect you to send them emails. They hope to get text messages and voicemails from you. They want and expect you to keep in touch with them. They expect you to continue to be that fantastic person you were when making the most significant purchase of their life. And you know what else? They expect you to ask for referrals. They expect you to ask for a testimonial.
Just remember that while you may enjoy talking about real estate every single day, they probably don't. If all you talk about is real estate every time you reach out to them, you are disrespecting them and destroying the relationship. Don't do that... Treat them like human beings or, heaven forbid, a friend and not just a source for real estate lead generation.
It is Really Easy and Affordable to do it Well and Right
It’s really easy to maintain a relationship with your past clients and sphere. It doesn’t need to be complicated; it should be effortless. In fact, with some automated real estate marketing software, the hard work is mostly done for you. But, do you know what to say in those messages? When to say it? How to say it without coming across as a “used car salesperson”?
Happy Grasshopper has over 10-years of experience answering those questions. We have a team of professional writers who specialize in writing and crafting killer emails that your contacts WANT to open and actually will look forward to receiving. Our writing team creates text messages that your database WILL reply to, along with voicemail scripts that will have your phone ringing with people eager to talk to you. You’ll be generating real estate leads in no time at all and at a fraction of the cost of buying new leads.
To learn more about how we can help you generate more leads and referrals from your database and potentially close another 12 (or more) transactions in 2021. It’s time for you to meet CHIRP.