Real Estate Lead Generation Goals Don’t Change In A Shift Market…
For most real estate agents, income goals don’t change much between being in a shift market or otherwise; you still need to make a specific amount of profit for yourself to be able to pay your lead generation, staff, cover your business and personal expenses, and reinvest sufficient funds into system maintenance and upgrades, ongoing education, and similar progressive operational improvements. That’ll keep you competitive and empower you to sell more houses, and is inarguably the best way how to sell real estate in a shift market, an up market, a down market, or under any other industry or economic conditions.
…What’s Needed To Achieve Them Does
That all being said, the amount of time, resources, and energy you’ll spend earning that same income will change under shift market conditions. You’ll have to work hard to keep your operational efficiency ratio low (indicating that the amount of resources used per sale is minimal).
More specifically, what it takes to sell real estate in a shift market — whether you’re trying to sell real estate during COVID-19 or any other shift market conditions — is this: you must go on more appointments. And, to do that, you must generate more leads and spend more everything on each sale.
What To Takes To Sell Real Estate In A Shift Market By The Numbers
In a stable market, top real estate agents can expect that every 24 lead generation contacts they make will yield one sale, so many agents have built their businesses scaled to that model. Yet, when it comes to trying to sell real estate in a shift market, that ratio is more like 33-40 contacts per each sale closed. So these statistics demonstrate clearly what every agent needs to understand about doing real estate in a shift market; it’s guaranteed that you’ll end up doing more to earn less. (Which is why you have to learn how to do more with less expense and resource investment!)
What’s Unique About Lead Generation To Sell Real Estate During COVID-19
Even more than other shift markets, current conditions have created a lot of uncertainty about the efficacy of lead generation for folks trying to sell real estate during COVID-19. That’s because of a combination of factors. For one, with in-person offices closed and in-person showings impossible, buyer interest in looking for houses online during the outbreak appears to be about 30%-50% lower than is normal for this time of year. What’s more, despite lower interest rates on mortgage loans, fewer buyers will be well-qualified to buy a home during or immediately after the outbreak, as self-employed buyers and those with debt-to-income ratios between 42%-45% will likely have more difficulty getting loan approval than they did before.(It’s worth noting that the self-employed account for 10% of US households— with about three-quarters seeking home loans — while high debt-to-income carriers have recently accounted for a greater number of mortgage loan recipients due to lenders’ decision to increase the maximum DTI to 50%. So losing these market segments as potential buyers is huge.)
Key Takeaways: Do Better To Earn More
So, the numbers suggest that people learning how to sell real estate during COVID-19, especially (though in any shift market to some degree), will need to likely at least double their lead generation efforts to close the same number of sales, unless they find ways to generate better leads.
Generating better leads (more motivated buyers) involves applying the “Two M’s” —matching your market, and making an offer — as well as the two-part process of prospecting and marketing while remaining in the right mindset to make sales. That is:
- To match your market – target a specific market segment, acknowledge and pitch to them how the specific market conditions benefit or challenge them.
- To make an offer – whether you choose to be direct up front (“Hi, have you considered buying/selling your home?”) or indirect (offering a free CMA), both roads lead to having leads explicitly tell you whether they are interested in buying/selling.
- Prospecting – is directly approaching people first.
- Marketing – involves all efforts to get buyers to call you (billboards, advertisements, etc.).
- Stay in the right mindset – spend at least three hours in the first half of your day (before 1PM) on your lead generation.