Today I’m going to be talking about the important of good, solid lead generation. I am sometimes surprised at how many FSBOs there are out there. On some days I get more FSBOs from Landvo than I do get Expired Listings from the MLS. I had always thought that when the market got slow, everyone would list and the FSBOs would disappear. I guess I was wrong. Here is the biggest reason there are so many FSBOs. It is because sellers expire with an agent, the home didn’t sell, and they don’t want to lock themselves in for another 6 months.
The FSBOs are worth going after, as long as your pre-qualify for motivation. I don’t know if my market is especially bad, but you have to really sort thru the gold (e.g. potential listings) to find the gems (e.g. motivated sellers.) That is our job in today’s market. There are so many homes for sale, and so many opportunities to take listings. If we just get our message out to those people we’ll have lots of opportunities to take listings. As long as we follow the basics, we can grow our business.
For example, let say an agent wanted to sell 50 homes this year, and they needed 35 listing sales to hit that 50 homes number. Since only 35% of the listings they take will sell, that mean they need to list 100 homes. That comes down to about 10 homes a month. And since the best time to take a listing is in the spring, let’s say we bump that number up to 12 listings per month in the spring. How do they take those 12 listings?
Well, they are going to need to go on presentations with 24 to 30 motivated sellers per month. To find that many motivated sellers, they will probably need to sort thru 3 sellers to find one truly motivated one. That means they will need to talk to 90 people in one month. To talk with 90 potential sellers, they will need to mail between 400 and 500. That comes out to 20 people mailed per day. Not too tough. And, if you follow up by phone on the people you mail, you’ll get a much better conversion rate. With just one to two hours a day spent on lead generation, your business will take off.
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Ben & Chris Curry The Short Sale Agent's Advocate
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