Real Estate is the most challenging business and most realtors struggle to get customers.
According to statistics in 2019, 50% of realtors across the USA did one deal in a year. 80% of the deals are being done by 20% of realtors.
On average 40% of realtors in the USA make 10 deals in a year.
Real Estate is viewed as a low hanging fruit (Easy to get licensed) with promises of large commissions.
Most newborn realtors have big expectations and unfortunately they suck to acquire customers and make sales. After working with high ranked realtors in Chicago, IL we developed advertising framework which will help you to increase your sales and gain more real estate listings.
Top 5 advertising tip for real estate agents to skyrocket sales.
1- Define your service area. At the beginning be hyper targeted. Know your area well, be able to answer all customer`s questions.
By picking an area you need to do some math and know if it is a profitable area to do business there or not.
Here is a choice : Sell several homes a month at average price, or sell one home at the highest price.
By defining this goal you will find the best customer persona for your business.
For example we spoke with realtors who work in Streamwood, IL and Lake Forest, IL and found out that realtors who work in Streamwood have more sales and make more money than realtors who sell luxury homes in Lake Forest.
Here is real estate market insights:
In Streamwood, IL within 1 years sold 2543 homes, Median price is $220k, Median days on Market 8 days.
In Lake Forest, IL within 1 years sold 1420 homes, Median price is $749k, Median days on Market 41 days.
Now let’s do some math. Probability to sell 10 houses in Streamwood is much higher than in Lake Forest.
In average commission is 2.5% and from doing business in Streamwood you can make around $55k a month while doing business in Lake Forest you will be able to make $18k a month.
You can get all information regarding real estate from Zillow and Redfin. From our experience we saw that Redfin gives more exact information.
Real estate advertising samples (Advertising Framework)
Now once you choose the area , it is time to target residents by offering them your real estate service.
Find out who your competitors are and what how they get listings.
Find the list of your competitors from Zillow or Realtor.com. Focus on who has more listings and activity range.
As a rule of thumbs 95% of realtors buy leads from Zillow. Buying leads does not mean that they are your customers, as a realtor you need to make sales calls and convert leads into customers.
Most people will ignore you unless they already heard about your services and found very helpful. Before making sales calls, realtors need to nurture leads.
How to get more real estate listings and have more customers and nurture leads?
1 Create your personal webpage. It is super cheap to create a personal webpage via wix.com or squarespace. It will cost you $18 monthly to have set up and have a real estate webpage.
2 Start blogging. Create content which will be interesting for residents. You can order 500 words content for $10 at iwriter.com. Most residents are interested in knowing what is going around, taxes, schools. Focus on community.
3 Join community groups in facebook, reddit. Members will give you some ideas about what they are interested in and what they would like to know. We observed that platforms which work the best for realtors are Quora, and Facebook Groups. Repost your article in Medium.com, Facebook Groups, Quora and Patch.com.
We like Patch.com because they will include your article in their newsletter and send it to their users.as a realtor you will get exposure.
Try to give your readers content focused on statistics, it will allow you to get more engagements.
4: Real Estate agents must advertise locally in the neighborhood.
How, Where can advertise locally?
- Find if there are billboards around a neighborhood. Contact the local billboard media company to rent it and put your message on.
Usually billboard advertising is expensive and requires some marketing skills. Per Billboard in rural area you might end up paying $2k and in downtown area it will cost you
- You can leverage using car-top advertising. Your ads will be shown on displays which are placed on cars which will allow you to get maximum exposure and deliver your message to people on streets.
We like car-top advertising because you can show you ads dynamically based on geo-location, population density, time.
Car-Top advertising is like billboard advertising on steroids at a cheaper price.
At Murmurcars.com car-top advertising costs $350 per month and your ad will be shown to 25,000 people.
Combine Car-Top, Billboard Advertising with Door-to-Door Postcard advertising.
Postcard Advertising will cost you around $800-$2500 to send 5000-20000 home owners.
For example: Car can park in front of Walmart and show to store visitors your ads and once they come back to home they receive a postcard with your ad.
Now it is time to mix Outdoor Advertising with Online Advertising.
Create Facebook, Google, Youtube Ads and target your neighborhood. While creating ads make sure that you have a checkbox “Show to people who live in ”, defined Zip Code.
As a realtor now you will surround your potential customers on streets and online.
Rule of thumbs says that in order for a person to become a customer he needs to see your ad 7 times, after that he will trust you and be ready to use your service.
Now you can call your leads, introduce yourself and be sure that they already know you and are familiar with your service and there is a 90% chance that they will start to work with you.
This Advertising Framework works 100% and realtors are able to get as a minimum 10 sells a month.
In Conclusion let’s count how much it will cost to advertise and what is ROI.
- 1 Billboard : Average cost $2500 a month to advertise on. (optional)
- 1 Car-Top Advertising: Average Cost $300 a month to advertise on.
- Door 2 Door Direct Mail (D2DRM) 5000 residents : Average Cost $1500
- Facebook Advertising : Will cost you $500 to target on Zip Code.
- Google Advertising: Will cost you $500 to target on Zip Code. (optional)
- Youtube Advertising: Will cost you $500 to target on Zip Code. (optional)
In Average this advertising framework for real estate agent will cost: $5800 or $2300 by advertising on Car-top (Mobile Billboards, D2DRM, Facebook Advertising)
Now a month you get 10 customers and average sales is $160K and you commission 2.5% and your Gross revenue will be $40k , and Net Revenue $34,200.
Is it worth investing in this Advertising Framework?