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How to Follow Up On Real Estate Leads

Feb. 20, 2011

Real Estate Follow Up Just As Important as Lead Generation

It seems every so often I talk to real estate people who are confused and frustrated because
they cannot seem to sell anything online especially when they are getting leads and spending
money on marketing.

Real Estate Lead follow up is perhaps the #1 Most Important Thing That Real Estate Agents Should Know When Getting Into This Industry. Granted times have changed a ton in the last few years not to mention 10 but this is something that needs to be taken very seriously.

There is a ton of "Opinions" about how to follow up on leads and based on feedback
from thousands of agents I will tell you what I know to be true.

#1 - According to NAR and real estate statistics the average closing ratio of Internet
leads
is about 3%, which means on average an agent needs about 35 Leads to
"do the numbers" and get an interested prospect who is preparing to buy within
the next 60 days or less.

It can vary but that is a good average and one I have seen to be true from setting up
thousands of guaranteed lead generation programs around the USA and Canada.

Basically 35 leads = 10 decent leads with good contact info and looking to buy within
1-6 months.

That also means that about 25 are tire kickers or bad info etc........

The best part about a wrong phone number is that there is no time waisted.
A bad number can be found out in 30 seconds and now you have processed the
lead and can move to the next quickly.

The goal is to keep the mind focused on "Doing the numbers".

I have spent 25 years working in or running phone rooms and the faster you can
qualify and sort a prospect into a "good" or "no good" pile the better for doing the numbers
and getting to the next sale.

The #1 Reason ALL Sales People Fail is FEAR -- They Are Afraid to Call Prospects

1. Afraid to get on the phone - scared sales people will make any excuse to call
and stay on the phone and would rather jot down 10 minutes of notes on a deadbeat
prospect rather than make the next call and find a buyer. Believe me when I say this is
about 80% of people who start in sales and then realize a salary job is way better.

2. Afraid of rejection - "Oh no if I call they may say they are not interested and ruin my day" If you are that fragile look in the mirror and overcome the fear and get used to it and enjoy it like I do as part of the NORMAL sales process of any sales job. 

IF YOU DO NOT CALL REAL ESTATE LEADS AS SOON AS POSSIBLE AND THINK THAT YOUR  CUSTOM WRITTEN EMAIL WILL WORK YOU NEED TO WAKE UP FAST and change what you are doing.

If anyone reads my posts there are a couple where agents and brokers have commented
they close 5%  of the leads they bring in from the Internet.

HOW DO TOP PRODUCERS FOLLOW UP ON
INTERNET REAL ESTATE LEADS?

1. They call leads ASAP and the floor duty agent checks email
while out front just like answering the phone. This leads to higher contact ratios which
leads to higher conversion. With the amount of portable hand held devices this should
not be too hard. If you are busy when the lead comes in then call them as soon as you are free. This fact alone has a huge impact on website lead conversion since just getting them on the phone is half the battle and letting people know you are good at what you do and can help them is easy.

2. They Never Send Hand Written Emails to Clients They Have Not Spoken To
Most websites have auto-response messages that go out automatically so do not waiste your time sending them a custom email until you have spoke to them first.  Agents who draft up and write custom emails to someone they have not spoken to will find this a useless and frustrating process and hopefully stop waisting their time doing this ASAP and start calling leads first instead.

3. Winning Agents Try Calling Leads AT LEAST 3x
and Always Put Them
on a Mailing List If I had a nickel for every agent who told me they tried to reach someone
but only called once I would be much wealthier. It is hard to tell if the number on the lead 
was at work and they called from home or vice versa. The vast majority of people appreciate the follow up and know you are serious about helping them. The 3 strikes and your out rule is an important one for converting leads into sales.

4. They Do Not Rely on Auto Responders to Sell Real Estate
Autoresponders should never be used as an excuse to not call leads. Although they can be helpful auto responder campaigns convert less than 1% of leads. Since the average closing ratio for calling leads can be as high as 5%, auto responders should be used to keep the lead list updated and convert the ones who you can't reach by phone.


Summary

I know there are a lot of brokers who give leads out to agents with 0 protocol on follow up and many agents who are very frustrated because they convert almost none. I met a woman last week who had over 350 leads and had not sold one. When she told me that she gets no response to her 30 minute custom drafted emails I knew I needed to bring this back up since I am getting way to many people wondering "what works best".

If you really want to convert the highest percentage of business from Internet leads then try to call them as soon as possible.

If this is tough or hard to do? Check out my tip below and do what other agents are doing.

Trouble Calling Leads? - PARTNER UP WITH A MORTGAGE LENDER

This has been a secret and successful tool for some big brokers and agents around the country who get the Mortgage Broker to help pay for the pay per click or marketing charges for traffic and then send leads to 1. The real estate agent and 2. The Mortgage Broker at the same time.

Mortgage brokers always have a room of phone people who can instantly call the lead and then
update the agent on the pre-approval status. I knew an agent who set up 5 websites with
5 different mortgage companies and generated tons of leads for both home loans and home sales.

It is easy to generate 30-300+ mortgage and real estate leads per month in any market in the country
so if you are busy bring in a mortgage lender partner and split the costs and use their sales room
to call the leads fast and qualify them. It is a win win for both parties involved.

I still have some heavy hitting agents who sell a home a week+ online and this process
has worked for years and years for agents all over the country.

If you need help generating real estate leads or mortgage leads call me and I can
get you going in 5 days or less with your own lead generating system with leads
that average from $5 to $9 per lead depending on the area.

Best wishes to Your Success!

Sean
858-731-7278 
getinfo@san.rr.com 
www.realestatemarketingnerds.com 



  

User Comments

1. RE: How to Follow Up and Convert Internet Real Estate Leads

Written by: Regina Rourke
Feb. 20, 2011

 Really nice article! Thanks! As a relative newbie, I sure appreciate the information. A lot of agents are having trouble realizing that follow-up procedures are changing by necessity.

2. RE: How to Follow Up On Real Estate Leads

Written by: Howard County MD Real Estate
Feb. 6, 2012

This is important tips for real estate business & its client related. Thank u for this post.

 

3. RE: How to Follow Up On Real Estate Leads

Written by: Marry
Mar. 23, 2012

I tried the tips given here and they did work ! 

4. RE: How to Follow Up On Real Estate Leads

Written by: main line homes
Jun. 16, 2012
Good way of telling, and pleasant piece of writing to get facts on the topic of my presentation topic, which i am going to deliver in school.

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