Did you know that the real estate profession is ranked in the top 15 “burn out” professions in America?
A survey by the National Association of Realtors, the median buyer shopped for 12 weeks and looked at 12 homes before making an offer. The average buyer spends 25 minutes and 30 seconds viewing a home before buying. A recent survey from Inman.com reported that the average conversion rate is about 3.2%. Other estimates report conversion rates from 3% to 5%. Furniture salespersons average a 35% conversion ratio. Life insurance agents average a 25% to 40% conversion rate. Car salespersons average a 15% conversion ratio. There is nothing more frustrating than working hard and not having anything to show for it. A salesperson is only as good as his leads. The first step toward improving closing ratios is to target marketing efforts to bring in better qualified leads.
Who is responsible for such low conversion rates? May we suggest the mundane listings are responsible for these low conversion numbers. The average home buyer spends three weeks researching real estate online before they even call an agent. Buyers have very limited resources. Average real estate websites provide the buyers still photos, facts, features, square footage, address and price. Great homes have character and flow and are not just statistics and facts. Great homes are in great locations with wonderful schools, beaches and beautiful neighborhoods. How do these websites match up to the expectations of the buyer? Most buyers envision the home and are frustrated when the home does not match their expectations. Often buyers often don’t realize what they want until they visualize the home, property and the local flavor of the neighborhood. Surveys show that 85% of buyers and sellers want an agent who has video marketing. By comparison, only 15% of agents actually have a video presence. Studies indicate having a video increases listing inquiries by 403%. Along the lines of ‘a picture speaks 1,000 words’, one minute of video is worth 1.8 million words – the equivalent of 3,600 web pages of facts and still image photos. Most importantly 80% of viewers remember what they’ve seen in online videos.
Do you feel like you are driving a car with a poor transmission? You’re behind the wheel, the tachometer is giving you a high reading, the speedometer a low reading, the engine is roaring, and you can see that you’re not going anywhere, you can assume a lot of energy is being spent for little or no result. All successful salesmen require high levels of the Dopamine. The high you feel at a successful closing is the brain hormone Dopamine. Every type of reward seeking behavior that has been studied increases the level of dopamine transmission in the brain. If you want to get a hit of dopamine, make a sale. Do not become a frustrated real estate agent. Improve your technique of obtaining motivated buyers and improve your conversion ratio. The sales skills required to leverage your ability to obtain more quality showings is with better target marketing and the latest technology. Every successful salesperson understands and feeds the ferocious cycle of selling.