Average Conversion Rate for Online Real Estate Leads

September 13, 2022

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Average Conversion Rate for Online Real Estate Leads

The conversion rate can make or break your business regarding online real estate leads. A high conversion rate means more money in your pocket, while a low conversion rate can mean losing out on valuable leads. So what is the average conversion rate for online real estate leads? And how can you ensure your business achieves the best results possible?

Let’s look at some of the latest data and offer tips to help you improve your conversion rates. Plus, discover why the average conversion rate for online real estate leads is as vital as you think.

Why Do You Need To Learn The Average Conversion Rate For Online Real Estate Leads?

The average conversion rate for online real estate leads is between 2% to 3%. This data is essential because it helps you understand how many leads you need to generate to get the desired number of customers.

For example, if your goal is to get 100 customers, you need to generate around 3000 leads. However, if your conversion rate is lower than average, you’ll need to generate even more leads to reach your target customers.

Conversely, if your conversion rate is higher than average, you can get by generating fewer leads. But this all depends on having an effective lead generation strategy in place.

Let’s look at some tips that can help improve your online real estate lead conversion rates to close more deals and grow your business.

Average Conversion Rate for Online Real Estate Leads
Real estate industry can benefit more with lead generation.

Generate More High-Quality Leads

One of the best ways to increase your conversion rate is by generating more high-quality leads. By definition, a high-quality lead is a potential customer who has a higher likelihood of doing business with you. 

For example, someone who’s already interested in buying or selling a property would be considered a high-quality lead. On the other hand, someone who’s just beginning their search for a real estate agent would be regarded as a low-quality lead.

The key is to generate more leads that are likely to convert so that you can close more deals and grow your business. But how do you generate more high-quality leads? You should know the best online lead generation strategies that work to ensure success. 

Here are some tips:

  • Research your target market: get to know your target market inside and out. What are their needs? What are their pain points? What type of property are they interested in? When you understand your target market, it’s easier to generate leads that are more likely to convert.
  • Invest in lead generation: lead generation is the process of generating leads through various channels, such as online ads, social media, or email marketing. Investing in lead generation makes you more likely to create high-quality leads interested in doing business with you.
  • Use targeted content: when you create content (such as blog posts or eBooks), ensure it’s targeted toward your ideal customer. This will help attract leads that are more likely to convert into customers.

Although the average conversion rate for online real estate leads is 2-3%, your business doesn’t have to settle for that.

Convert More Leads Into Customers

Once you’ve generated more high-quality leads, it’s time to focus on converting them into customers. Here are some tips to help you close more deals and grow your business:

  • Follow up with leads: after generating a lead, follow up within 24 hours. This shows that you’re interested in doing business with them and helps build trust. You can follow up via email, phone call, or text message.
  • Provide a great customer experience: from the first contact to the final sale, make sure you provide an exceptional customer experience. This includes being responsive, helpful, and professional at all times.

Offer a competitive commission: although you want to make money, you don’t want to scare away potential customers with a high commission. Offering a competitive commission will help you close more deals and grow your business.

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Following these tips can improve your conversion rate and close more deals. Remember, the average conversion rate for online real estate leads is just a starting point—you can (and should) strive to do better than that.

That said, the average conversion rate for online real estate leads is still an important metric to track because it gives you an idea of how many leads you need to generate to get the desired number of customers.

For example, if you want to close two deals per month, and your average conversion rate is two percent, you’ll need to generate 100 leads per month to get two customers.

Tracking your average conversion rate will help you determine how many leads you need to generate to reach your goals. And by following the tips above, you can improve your conversion rate and close more deals.

Average Conversion Rate for Online Real Estate Leads
Lead tracking system can help real estate agents track their progress.

Use a Lead Tracking System

Finally, a lead tracking system is one of the best ways to increase your online real estate lead conversion rate. A lead tracking system helps you track and manage your leads so that you can follow up with them promptly.

It also lets you see which leads are interested in your property and which are not. This way, you can focus your time and energy on the leads more likely to convert into customers.

Many lead tracking systems are available, so choose one that’s right for you and your business. These include:

  • Hootsuite Insights
  • Sprout Social
  • Zoho CRM
  • HubSpot Sales CRM
  • Salesforce CRM
  • Pipedrive CRM

You can increase your online real estate lead conversion rate and close more deals using a lead tracking system.

How Does Conversion Rate Affect Your Business?

Conversion rate is like the oxygen to your real estate business.

  • A high conversion rate means you’re doing something right and generating many leads.
  • A low conversion rate could mean you’re not following up with leads, or your website is not optimized for conversions.

Conversion rates vary depending on the lead type, but a good general rule of thumb is that around 20-30% of online leads will convert into clients.

So, if you do not see those numbers, it might be time to take a closer look at your business and know where you can improve.

There are a few things that you can do to increase your conversion rate:

  • Make sure that your website is optimized for conversions
  • Follow up with your leads promptly
  • Provide value to your leads
  • Build relationships with your leads

Learning the average conversion rate for online real estate leads can help you build a unique yet powerful marketing strategy for your business.

Average Conversion Rate for Online Real Estate Leads
Build relationships with your potential leads and provide customer satisfaction.

How Can It Benefit Your Business?

The average conversion rate for online real estate leads provides multiple benefits for real estate agents and home buyers and sellers. By understanding the average conversion rate, real estate agents can adjust their marketing strategies to attract more online leads that turn into clients.

Similarly, home buyers and sellers can use this information to gauge how likely it is that they will be able to find a real estate agent who can help them with their specific needs.

Overall, understanding the average conversion rate for online real estate leads helps create a more efficient process for everyone involved in the real estate market. For instance, if a real estate agent knows that the average conversion rate for online leads is low, they can focus their efforts on generating more leads.

Conversely, if home buyers and sellers know that the average conversion rate is high, they can be more selective in their search for a real estate agent.

In either case, having this information available helps create a better experience for everyone involved in the real estate market.

Average Conversion Rate for Online Real Estate Leads
Create a better experience for everyone involved in the real estate market.

How Long Will It Take For Your Leads To Convert?

Once you clearly understand the average conversion rate for online real estate leads and the best strategies to help increase this number, you can start setting expectations for your team.

If you’re generating many leads but not seeing many conversions, you must take a step back and look at your process. Are you nurturing your leads? Are you staying in touch with them regularly?

It’s also important to understand that every lead is different and will move through the sales cycle at its own pace. Just because one lead takes longer to convert doesn’t mean they’re not interested.

Roughly, it will take about six months to two years for an online lead to convert into a sale, but this number will vary depending on your business model and the type of leads you’re working with.

The most important thing is to maintain regular contact with your leads, providing them value along the way. By nurturing your relationships and keeping in touch, you’ll be top of mind when they’re finally ready to make a purchase.

Quality Over Quantity

Note that quality is more important than quantity when it comes to leads. You could have a low conversion rate, but if you’re working with high-quality leads, they’ll be much more valuable in the long run.

Conversion rates will always fluctuate, but you’ll eventually see the results you want as long as you generate quality leads and nurture them throughout the sales process.

Average Conversion Rate for Online Real Estate Leads
Understand what is a good conversation rate and work on improvements.

What is A Good Lead Conversion Rate in Real Estate?

The real estate industry is competitive, and generating leads is only half the battle. Once you have a lead, you must know a reasonable conversion rate to gauge your success correctly.

A lead conversion rate is the percentage of leads that turn into paying customers. For example, if you generate 100 leads and 20 turn into sales, your lead conversion rate would be 20%.

The average lead conversion rate in real estate ranges from 0.75% to 15%, but this number will vary depending on the type of business you’re in and the quality of your leads.

If you want to increase your conversion rate, start by evaluating your process. Are you nurturing your leads? Are they qualified? The better your leads, the higher your conversion rate will be.

What Is A Good Conversion Rate For Online Sales?

Although the average conversion rate for online real estate leads is around 2-3%, a good conversion rate in the real estate industry is about 2-5%. This is because the real estate industry is highly competitive, and it’s essential to generate high-quality leads.

If you want to increase your conversion rate, start by evaluating your process. Are you nurturing your leads? Are they qualified? The better your leads, the higher your conversion rate will be.

Discover what are the common mistakes and avoid them.

What Are the Common Mistakes Real Estate Agents Make With Online Leads?

One of the most common mistakes real estate agents make with online leads is not nurturing them properly. 

Many agents generate leads but fail to follow up with them regularly, resulting in lost business. It’s essential to stay in touch with your leads and provide them value if you want to convert them into paying customers.

Another mistake agents make is not setting expectations appropriately. Many buyers are not ready to purchase a property immediately; it can take months or even years for an online lead to convert into a sale.

It’s essential to understand the average conversion rate for online real estate leads and set realistic expectations for your team accordingly.

If you’re generating quality leads and staying in touch with them, you’re well on your way to success.

How Lead Generation Heps Real Estates?

Lead generation has transformed the real estate industry by providing agents with a consistent stream of potential customers.

In the past, generating leads was a time-consuming and expensive process that often yielded little results. However, with the advent of technology and the internet, lead generation has become much easier and more effective.

Nowadays, there are many ways to generate leads online, including pay-per-click advertising, search engine optimization, social media marketing, and more.

Optimization is another key to increase your conversion rate.

Using these various lead generation strategies, real estate agents can quickly and easily connect with potential customers interested in purchasing a property. As a result, lead generation has helped increase sales and grow businesses in the real estate industry.

If you’re not utilizing lead generation in your real estate business, you’re missing out on a huge opportunity to grow your business.

If you want to increase your ROI, generating leads should be a top priority for your business. Here are popular ways to improve the average conversion rate for online real estate leads:

  • PPC Advertising

Paid advertising means you are targeting potential leads with ad campaigns on popular platforms like Google, Facebook, and Instagram. These ads are specifically designed to reach individuals who may be interested in purchasing a property.

One of the advantages of paid advertising is that you can target your audience precisely, increasing the chances that they will convert into paying customers.

Another advantage of paid advertising is that it allows you to get your message in front of potential leads quickly and easily. If done correctly, paid advertising can be an excellent way to generate leads and increase sales in the real estate industry.

  • Search Engine Optimization (SEO)

Search engine optimization is optimizing your website for Google’s search algorithm so that you appear higher in search results when potential leads are looking for properties.

By appearing higher in search results, you will get more website visitors, increasing the chances that some visitors will convert into leads.

SEO can be complex and time-consuming, but it’s one of real estate agents’ most effective lead generation strategies.

If you’re unsure how to optimize your website for SEO, many resources are available online to help you get started.

Work with your quality content that are worth sharing.
Work with your quality content that are worth sharing.
  • Social Media Marketing

Social media marketing involves creating and sharing content on social media platforms like Facebook, Twitter, and LinkedIn. Social media marketing aims to build relationships with potential leads and customers and ultimately generate more business.

One of the advantages of social media marketing is that it allows you to connect with potential leads on a personal level. By sharing valuable and relevant content, you can build trust and credibility with your audience, which increases the chances that they will do business with you in the future.

Another advantage of social media marketing is that it’s relatively inexpensive and easy to start. Now is the time to start if you’re not already utilizing social media for your business.

  • Email Marketing

Email marketing involves sending newsletters, special offers, and other promotional material to potential leads through email. Email marketing aims to stay top-of-mind with your leads so that they think of you when they’re ready to purchase a property.

One of the advantages of email marketing is that it’s a great way to stay in touch with your leads without being too salesy. By sharing valuable content, you can build relationships with your audience and eventually persuade them to do business with you.

Another advantage of email marketing is that it’s relatively inexpensive and easy to set up. If you’re not already using email marketing for your business, now is the time to start.

  • Referrals

Referrals are one of real estate agents’ most effective lead generation strategies. A referral occurs when someone recommends your services to a friend or family member.

The best way to generate referrals is by providing excellent customer service and going above and beyond for your clients. If you provide a great experience, your clients will be more likely to refer you to their friends and family.

Another way to generate referrals is by offering referral fees. Many real estate agents provide a percentage of the commission to anyone who refers to a lead that ends up purchasing a property.

You can encourage your clients and contacts to send business your way by offering referral fees.

  • Check Zillow

Zillow is a popular website that allows users to search for homes for sale in their area. Zillow also allows users to contact real estate agents directly.

Now is the time to start if you’re not already using Zillow to generate leads. By creating a profile and claiming your listings, you can increase your visibility and get in front of potential leaders looking for properties in your area.

By utilizing these lead generation strategies, you can increase the number of leads you’re able to generate and convert more leads into paying customers.

Average Conversion Rate for Online Real Estate Leads
Find high-quality leads for your business.

Where To Get Quality Leads For Your Business?

Real estate leads are some of the most valuable leads you can get for your business.

If you’re looking for quality real estate leads, consider using a lead generation service specializing in generating leads for the real estate industry.

These services offer high-quality, fresh, targeted leads more likely to convert into sales. As a result, you’ll be able to grow your business and close more deals.

Many lead generation services are available, so be sure to research and choose one that’s right for you.

By utilizing a lead generation service, you’ll be able to quickly and easily connect with potential customers interested in purchasing a property. As a result, you’ll be able to grow your business and close more deals.

Although the average conversion rate for online real estate leads may not be as high with other industries like insurance or mortgage, with proper nurturing, it can still blossom into a long-term relationship that benefits both parties involved.

The critical thing to remember is that not every lead will be ready to purchase a property immediately. By staying top-of-mind and building relationships with your leads, you’ll increase the chances that they’ll do business with you in the future.

Final Words

Finding the perfect lead generation strategy to grow your real estate business can be challenging. You can start by understanding the average conversion rate for online real estate leads. You can begin experimenting with different lead generation strategies to see what works best for your business.

Utilize a mix of strategies, including email marketing, referrals, and Zillow, to increase the number of leads you can generate. By utilizing these strategies, you’ll be able to connect with potential customers and close more deals.