Commercial PropertyWhat The Realestate.com Study Really Means
RealEstate.com says it analyzed 100,000 Internet leads of both buyers and sellers processed through its agent network between April 2004 and September 2004 to find some interesting results. Internet real estate consumers aren"t tire-kicking, information-sucking time-wasters, after all.
Sixty-five percent of the buyers and sellers surveyed closed within the first six months that they completed their online requests. Of those, 31 percent closed in the third or fourth month, and 34 percent of the closings occurred between months seven through 12.
That means that the Internet has not only become one of the most powerful tools to get leads, but that the leads that are generated are surprisingly solid.
"The Internet real estate customer represents a unique, highly-motivated group of buyers and sellers," explains Andrew Taylor, general manager of RealEstate.com"s Agent Network. "With one in four leads resulting in a closed property transaction within a 12-month period, we have first-hand knowledge of how successful online leads can be for agents who are serious about growing their online business. The evidence is mounting. The online channel is proving its worth and real estate agents who tap into Internet leads can realize tremendous success."
Taylor attributes the high closure rate to RealEstate.com"s four-point contact system, called Smart Touch Filtering, which focuses on contacting, connecting, and confirming the information for each customer before it is passed on to the agent.
It"s a fairly painless way to keep leads in the pipeline over six months that might otherwise be lost to other agents, suggests Taylor. "Creating a process or partnering with a company that focuses on filtering leads can positively impact lead quality and the overall possibility those leads will close," he advises.
While the study appears self-serving, RealEstate.com owns up to the fact that the consumers participating were those with correct addresses, contact information and in areas where RealEstate.com agents practice. Rejecting about 58 percent of leads before filtering them through to participating agents, RealEstate.com had Real IQ, a survey company, compare the name and address provided by each customer to the information listed in available county public records data. Qualifying leads matched one or more residential property transactions recorded during the 12 months following the date of lead submission. The online lead incubation company also confessed that the surveyed consumers didn"t always complete their transaction with an agent in the RealEstate.com network.
That suggests two things, says Taylor.
"Agents who contact online customers quickly after receiving their request are likely to have the advantage, simply because these customers are ready to transact," says Taylor. "While many online customers begin their research prematurely, others remain motivated enough to close within one year of completing a request online."
So don"t give up.
The real takeaway is that Internet leads are solid, but not necessarily for agents who don"t take the time to nurture a relationship.