Virtual Homes

Elements of Internet Lead Conversion - The Response

In a recent post on the key elements of Internet real estate lead conversion, many agents commented on the "response factor" and asked me to elaborate on the process.  On-line lead generation is relatively new to most in the real estate industry and is in constant change.  Virtual Homes real estate lead system was developed based on consumer preferences obtained over nine years of research and development.  Consumer preferences will continue to change as the technology evolves.  The following information will provide a better understanding on how to follow up with the consumer.

1. Every year the National Association of Realtors (NAR) conducts a consumer survey and historically their main complaint about real estate agents is that they do not follow up.

2. It doesn't matter what we think the appropriate response should be.  The consumer is in control of this process and we must meet their needs to have the opportunity to earn their business.

3. Registration (filling out a web form) in a website is a choice that the consumer makes based on the value proposition offered.  Websites that offer quality content without commitment will create a basic level of loyalty.  When the consumer determines that the registration is "worth it", they will enter the information and do expect a response.

4. If your web form generates a telephone number then you should call back immediately.  The Virtual Homes IMS (Internet Marketing System) data indicates that only 10% (10% rule) of consumers registering are "serious" and want to talk to you.

5. To connect with the "serious" consumer requires a response back within 3 minutes and three more attempts within 24 hours.  These potential buyers and sellers will work with the first responder most of the time.  So, if you don't respond quickly and appropriately, don't be surprised if they have found another agent.

6. Once you connect, your approach should be a "customer service" response. 

Future posts will evaluate effect methods of communication in your follow up response.

Who Are These Industry Experts?

 For the past two months I have watched various television programs and listened to radio interviews whereby "industry experts" talk about the difficulties in obtaining a mortgage in today's market.  Two recent interviews:

Places: Today New York Studio
Reporters: Ann Curry
Recorded Date: 2009/01/01

Ms. CHATZKY: "You know, if you are somebody who is sitting with a 10 to 20 percent down payment, with a good credit score--and I mean 720 to 760 or above--now is a great time to buy a home."

Places: New York City, New York
Reporters: Carmen Wong Ulrich, Lester Holt
Recorded Date: 2008/12/21
Media Type: AS

Carmen Wong Ulrich says "And we are running to the bank. And I will, too. Here's what you need to know. That when you refinance your home, you're buying it over again. So you need to have the three C's that you need when you buy a home. First, you have to have fantastic credit. Lenders still want you to a have really great credit score, 760 and above, preferably, to get the lowest rates.  ...And what that means is when you buy a home, that you put 20 percent down.

It's time to take action!!  Contact NAR, your state association, your local board and write letters to the editors of your local newspaper.  The facts are (and our talking point for the media) that you can buy a home through FHA with a 3.5 down payment, credit scores >580 and get a $7500 tax credit.

It would be unfortunate for a consumer to miss the opportunity to purchase a home due to inaccurate information.  View a recent article on affordable financing for first home buyers.

Map Based MLS Search Tool Goes Public!

Virtual Homes, an Internet marketing company, is now offering a FREE map based search tool for consumers interested in searching the Massachusetts MLS system.  You can search by street and neighborhoods, plan drive-bys,and establish the ideal commuting locations.

 Click on www.virtualhomesmls.com to start your search.  You can search by county and town.

  Benefit to Buyer Customers/Clients:

- Easily search for and preview active properties by area/neighborhood.

- Evaluate pricing differences among areas/neighborhoods.

- Quickly identify nearby towns.

- Identify towns in which to search for homes based on desired distances from target locations.

- View results for popular search criteria (waterfront, land, homes) with one-click.

 We would appreciate your feedback for improvements.

For real estate information in other MA communities visit MA Virtual Homes.  Professional real estate services provided by RE/MAX Innovations (www.relocationma.com) and RE/MAX Country Properties (www.nhrelocation.com).

A New Kind of Customer Demands a New Kind of Strategy

Today’s homebuyers have more information available to them than ever before. Because of this, Realtors no longer control the process.

Thanks to the Internet, buyers can do most of the leg work themselves. Sites like Realtor.com, as well as regional and local MLS (multiple listing services) oriented sites, allow buyers to filter listings down to very specific criteria. Buyers now have access to assessed values, taxes, previous sales history, and community information such as schools, parks, and public services. Buyers can even take complete virtual tours of homes without ever setting foot on the property.

As a result, there has been a dramatic shift in control over the sales process. Buyers now drive the process and dictate the sales timeline. They no longer walk through the doors of real estate offices or call Realtors on the phone when they want information or to look for a house. They visit Web sites or blogs and would rather communicate through email or over Instant Messaging.

In fact, according to the National Association of Realtors (NAR), 84% of all buyers used the Internet when searching for a new home.  29% of home buyers first learned about their home on the Internet—a number that is up 5% from 20061. Another survey reported that 92% of Internet buyers found their agent on a Web site and 63% found them through an Internet search engine. Over 50% of young buyers use social networking sites like Facebook and MySpace.

These numbers will only continue to grow. A new survey of college students found that:

• 97% own a computer
• 94% own a cell phone
• 76% use Instant Messaging
• 15% of IM users are logged on 24 hours a day/7 days a week
• 34% use Web sites as their primary source of news
• 28% author a blog
• 44% read blogs
• 75% of college students have a Facebook account3
• 60% own some type of portable music and/or video device such as an iPod

These technologically savvy students will become the home buyers and Realtors of the future. And these buyers will expect the same technological fluency from their Realtor.

Therefore, as this next generation of buyers comes into the marketplace, the need for Realtors to adapt to technology will be critical to the buying side of the process. In my next blog posts, I'll try to outline some strategies for success.

The Traditional Real Estate Model Has Changed

The foundation of the real estate economy is based upon the commission earned from the buying and selling of property.  In every transaction, there is a buying side and a selling (listing) side.  Real estate companies focus more on the listing side because listings also attract buyers.  In most markets, if you control the listing market you will have market share (more transactions).  The company can also increase market share by recruiting more agents.

Most companies’ recruiting efforts focus on promoting their market share, brand awareness and office culture.  Agents are attracted by the potential of business opportunities provided by a company’s listings.  This value proposition is particularly important to newer agents who do not have the benefit of repeat clients and referral business. In the past, agents had the opportunity to obtain customers (primarily buyers) by servicing walk-ins, and ad or site sign calls. These walk-ins or calls resulted not only from the volume of listings, but also from Realtors controlling the general sales process.

Until recently, the real estate sales process was controlled by Realtors because Realtors controlled the information. Only Realtors had complete access to MLS listings and housing information. Even if a buyer saw a house in an advertisement, it usually never contained an address. This forced the buyer to call or visit a real estate office for more information and to interact with an agent.  Buyers were forced to work around the Realtor’s schedule in order to start looking at houses. Realtors would also selectively eliminate homes from consideration to help narrow the choices for buyers. Although this service was appreciated, it limited the information and amount of homes a buyer would be able to consider. The Internet has forever changed this process.

Technology has created a generation conditioned to be instantly gratified. This generation wants and expects to maintain control over the process and have access to the information. The resources available online has subsequently minimized the occurrence of walk-ins and calls resulting from advertisements. Traditional real estate companies and traditional Realtors must therefore adapt to these tech-savvy home buyers.

Unfortunately, there is a generation gap forming between buyers and Realtors. The average age of a first time home buyer is around 32 years old. The average age of real estate agents is 53, and the average age of real estate brokers is 62.

For traditional real estate companies to compete effectively, they must learn how to market to the Internet generation and start attracting younger people into the industry.