Real Estate Marketing Blog

Morris Real Estate Marketing Group’s blog is your home for up-to-date information that is vital to every REALTOR®. Visit us regularly for the latest real estate marketing tips and REALTOR® resources. The information we share is designed to provide real estate agents with the tools they need to succeed on a day-to-day basis. Our blog is constantly updated, so be sure you check back often.

Real Estate Marketing Myths That Cost Rookie Realtors Money

Each Marketing Monday this month, we are dissecting real estate marketing myths that cost new agents money. Last week, we focused on Real Estate Marketing Myth #1: If you build a website, they will come. Today we turn our attention to another common myth that costs new Realtors® money: buying leads.

Real Estate Marketing Myth #2: Buying Leads = Buying Sales

There is more than one way to buy a lead. Professional Realtors® may choose to buy lead lists, website listings, Google AdWords and / or social media. While buying leads can be an effective strategy, it’s important for new Realtors® to understand that buying leads does not necessarily translate into buying sales. There is risk involved, especially when starting out and capital is precious.

Real Estate Marketing Myths and Mistakes

Unfortunately, leads don’t come cheap and conversions are often low (think less than 1%) for even the best closers in the business. This brings us to a major point in the discussion: before a new agent spends any money on leads, they must make sure that they know how to close. This may seem like a chicken and egg scenario but there are other options out there to help you become a closer. They may take more work but that just means you have more practice under your belt. Try the dreaded cold calling and foot pounding. If you haven’t perfected your elevator pitch and closing speech, you must practice, practice and practice before gambling on expensive lead-buying.

In addition to knowing how to pitch and close, you must have a solid lead management strategy in place. If you do not have the resources to capture and nurture your leads, lead purchasing can become a fruitless endeavor.

If you do decide to purchase real estate leads, you need to know what you’re paying for and what you’re getting into. When it comes to purchasing leads from website, for example, are you paying for actual leads or impressions? Are there other Realtors® on that page that you will need to compete with? Is there a contract that will lock you in regardless of how many conversions you aren’t getting?

There are a lot of great resources out there. Many highly successful Realtors® have offered some fantastic free advice via video, short articles and blogs about buying real estate leads. The best advice we have heard, however, is to not put all your eggs in one basket. If you blow your entire real estate marketing budget on one lead source, you put yourself in a vulnerable situation. What if your lead source has a traffic drop? A spike in fees and charges? Or policy changes? Make sure that lead purchasing is just one component to your overall real estate marketing strategy.

We hope you found this real estate marketing tip helpful. If you have any questions or comments, please let us know! Make sure to tune in next Monday as we discuss the real estate marketing myth surrounding networking and lead source expectations.

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Converting FSBOs: The Best Approach and 3 Real Estate Sales Pitches

For Sale By Owner Sales Pitch

One of the toughest groups to sell to as a real estate agent is FSBOs. After all, they’re independent-minded. They want to do it on their own. They may even take pride in their efforts to sell without a Realtor.

The good news is, there are often several “For-Sale-By-Owner” listings in a market at any given time. According to the Profile Of Home Buyers And Sellers, published by the National Association Of Realtors, the average is 8%. That’s a healthy crop of potential new business for you as a Realtor. Converting just a few can add thousands to your income.

So how do you do that?

Best Approach for Converting a FSBO: Become a FREE information source

The best approach to working with a FSBO is to remove your sales hat entirely. FSBOs have made up their minds that they do not need nor want to spend money for your services, and you’re not likely going to win them over immediately. Instead, make it clear up front that you will not charge them for professional advice. Keep in constant communication with them by offering free sound advice with no strings attached. Many FSBOs eventually realise that it’s in their best interest to hire an agent. This approach ensures that you are the agent that they go with.

3 Real Estate Sales Pitches to help you overcome objections

Here are three real estate examples of sales pitches that will help. Each are based on what research tells us motivates the FSBO.

The first is based on the fact that many go the FSBO route because they want to save money.

SELLER: “Frankly, I want to save money by not having to pay a commission.”

YOU: “That’s understandable. May I show you how I may be able to sell your home for a price that more than compensates for the commission? After all, it’s ultimately the profit you make on your home — what ends up in your pocket — that matters most, regardless of the expenses. Right?”

 This pitch gets the FSBO thinking about their decision from a different angle. It also opens up the conversation. Now you’re talking!

Here’s another real estate sales pitch example. This one addresses those FSBOs who are hoping to sell to a neighbour or friend and, therefore, do not need an agent.

SELLER: “I have lots of friends and social media contacts. Some have expressed an interest in my home. I’m sure I’ll get an offer soon.”

YOU: “That’s great news. However, it’s important to have a contingency plan in case that doesn’t happen. Trust me, you don’t want your listing to end up languishing on the market. May I share some ideas on how I would market your home to eager buyers who are not in your network?”

This pitch gets the seller thinking about the downside of FSBO-ing. It also motivates them to at least listen to what you have to say. Again, it opens up the conversation.

The final example speaks to the do-it-yourself mindset many FSBOs have.

 SELLER: “I’m going to sell my home myself. After all, I own a small business. I know how to market and sell.”

 BUYER: “You can play a big role in selling your home — and still work with a real estate agent. I have a lot of expertise selling in this market. Let’s talk about how we might join forces and collaborate on getting your property sold quickly and for the best price.”

This script honors the DIY determination of the seller, so they don’t feel like they’re “giving up” if they hire you.

Try these scripts the next time you’re talking with a FSBO prospect and remember the key takeaways: make sure the FSBO feels that their objections were heard and to always return to the fact that you are here to offer yourself as free information source.

The majority of FSBOs eventually end up working with an agent. That agent might as well be you!

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Real Estate Marketing Myths That New Agents Believe (and spend money on)

real estate marketing mythsOver the next five Marketing Mondays, we will discuss the most common and expensive mistakes that new Realtors® make. These mistakes are usually based on real estate marketing myths and misconceptions, and one of the most common real estate marketing myths involves building your first professional real estate agent website.

Real Estate Marketing Myth #1: If you build a website, they will come

There are two parts to this myth that cost new agents money and sales. The first part is believing that a website is the beginning and end of an online marketing strategy. The second part is assuming that bigger equals better. It’s not only new real estate agents who get caught up in this myth. Many first-time business owners believe that if they build the biggest, best and most exciting website, leads will come pouring in. Unfortunately, this couldn’t be further from the truth.

A real estate website serves one primary goal: to help agents convert leads into sales. There are four avenues through which this can be achieved:

  1. Prospect enters their data into targeted lead capture form
  2. Prospect emails you
  3. Prospect calls/texts your listed phone number
  4. Prospect visits your office address

While it’s smart to have elements other than your contact info on your website, such as a blog that will help establish your credibility and SEO-optimized listings (MLS integration), it is imperative not to go so overboard that this information is lost in a mix of flashy imagery, videos and information that distracts from the purpose of helping you convert leads into sales.

Even after agreeing with the concept that Realtor® websites exist primarily to help convert leads to sales, many rookie Realtors® still become obsessed with having a website that knocks people’s socks off and blows all other real estate agent websites out of the water. The issue with this line of reasoning is, just like a beautiful home cannot sell itself, a brand new, expensive website in-and-of-itself won’t draw hundreds of leads to your door.

For a home to sell, buyers must 1. know it exists, 2. know how and where to find it and 3. be compelled to go see it. The same goes for a website.

This is why it’s incredibly important that you don’t blow your entire budget on a website when you’re first starting out, instead of focusing on what matters – an effective, lead-generating website that is one component in an overall solid real estate marketing strategy and lead management system. Visit Rookie Realtor Referral Marketing System for more information about this.

Please join us next week for our real estate marketing myth discussion on buying real estate leads!

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Millennial Home Buying Facts: What Real Estate Agents Need to Know

Millennials are changing the housing marketThis month at Morris Marketing Group, we have focused our attention on Real Estate Marketing to Millennials. First, we talked about National Association of Realtors® partnership with Modern Family, an incredibly popular, Emmy award-winning television series. Next, we offered our best tips for real estate marketing to Millennials. We followed this by sharing a fantastic infographic that depicts how Millennials are changing the housing market. To wrap up our month-long discussion, we would like to present some facts that real estate agents need to know when marketing to Millennials.

Millennial Home Buying Facts that Real Estate Agents Need to Know

According to BMO Harris, here are the 5 Millennial home-buying trends that real estate marketing professionals need to know.

5 Millennial Home-Buying Trends

  1. Millennials are moving to the suburbs
  2. To reach Millennials, you need to be online
  3. Single Millennial women are buying homes
  4. Federal Housing Administration (FHA) loans account for 35% of Millennial home purchases
  5. Millennials are skipping starter homes

For more detail, please visit BMO Harris.

5 Stats That Show How Millennials Deviate from the Norm

According to Zillow Research, Millennials navigate the decision-making process differently than any other generation. Here are 5 stats you need to know when helping Millennials purchase their homes:

  1. 42% of homebuyers are Millennials, making them the largest group of buyers
  2. More than 90% of Millennials will perform online research when purchasing a home
  3. Nearly 60% of Millennials will rely on real estate referrals, information and advice from people they know
  4. 26% of Millennials are housing flexible, meaning they are open to purchasing townhomes or duplex/triplex properties
  5. More than 70% of Millennials will consider renting as opposed to purchasing

For more Millennial real estate stats and numbers, visit Zillow Research.

5 Common Misconceptions About Millennial Home Buyers

Many misconceptions about Millennials are being flouted online and around the water cooler. Here the top 5 that we would like to help clear up, with help of a report from the National Association of Realtors®:

  1. All Millennials are broke

According to a report from the National Association for Realtors®, the 37% of homebuyers under the age of 36 have an income between $65k to $129,999k, and the median home purchase price among this generation is $205k. Furthermore, a whopping 89% purchase a home with 3+ bedrooms.

  1. Millennials are all single

On the contrary, Milennials are just as likely as other age groups to be married, and 51% of this age group are likely to have children at home.

  1. Millennials only buy fixer-uppers

The 36-and-under demographic is less likely to choose a house based on “charm” or “character” and much more likely to avoid renovations or potential pitfalls, like electricity or plumbing issues, than their counterparts aged 37-61.

  1. Millennials are only interested in urban areas

The average Millennial is 57% more likely to choose the suburbs over another area, a higher percentage than any other age group.

  1. Millennials only care about price

As it turns out, Millennials are the most likely age group to compromise on price and the second-least likely to compromise on the quality of the neighbourhood (with Baby Boomers just skating into first place).

For more information and stats, visit NAR Homebuyer and Seller Generational Trends Report 2017.

This concludes our April series on Real Estate Marketing to Millennials. Did we leave anything out? Would you like to add your insights? Please let us know!

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Millennials are Changing the Housing Market

Over the last couple of weeks, we’ve turned our attention towards Millennial home buyers. First, we talked about the National Association of Realtors® partnering with Modern Family. Next, we offered up our top 5 tips for real estate marketing to Millennials. Make sure to tune in next week! We will cover Millennial home buying facts: What Real Estate Agents Need to Know. Today, however, we want to share a fantastic infographic from Nationwide Mortgages:

How Millennials are changing the housing market

Millennials are changing the housing market. Real Estate Marketing to Millennials

Via Nationwide Mortgages

 

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