Estate agents know that acquiring leads, people looking to sell their property, can be difficult. There’s a lot of competition and it’s a sellers market considering demand for property has never been as high as it is today.
With an abundance of lead generation avenues for estate agents out there, it’s difficult to know which to pick. Some estate agents turn to predictive analysis methods.
Predictive analysis is a new(ish) concept currently being more widely adopted by estate agents.
It’s not yet concluded if predictive seller analysis provides a better ROI for estate agents vs traditional forms of estate agent marketing. Advertising your estate agency’s services via leafletting or investing in search engine optimization for your estate agency website are still credible forms of marketing and could be a lot cheaper in the long run.
Sign up to start receiving leads. Get 50% of your first month using code rentround13.
What Is Predictive Analysis?
Predictive analysis uses knowledge from the past and present to predict the future. Within the realm of property sales.
It can help you understand which homeowners are likely to sell in the near future based on certain demographics. If you don’t know how to perform predictive analyses yourself, you can either use a program or purchase leads that could result in a buy for you.
Certain programs implement predictive analysis to generate leads for you to contact. These people may or may not be thinking of selling their homes soon, so it allows you to reach out to them before their house potentially goes on the market.
What Can Predictive Analysis Do for You?
Predictive analysis can save you the trouble of working through things and analysing properties on your own. It evaluates a property based on certain traits that it has in common with other places for sale or recently sold.
As a result, you could find something that has not been put on the market yet, but the owners want to sell.
Going this route may allow you to get a jump ahead of your competitors.
1. Ahead of the competition
When someone looks to sell their property, they are likely to reach out to 2 or 3 estate agents to find a potential suitor. They want an agent to sell their home quickly and at the highest price.
If you can have the first chat with the seller instead of the competition, it puts you in a favourable position to be picked by the property seller.
2. Saves You Effort
You have numerous responsibilities. You have to find leads, make sure they pick you and ensure buyers are scheduled for appointments.
As such, you may not have a lot of time left to search for new properties you’d like to get on your books..
Using an AI or program and outsourcing that responsibility could save you time and effort — meaning you can focus on something else.
3. Does the extra marketing
Once an AI system identifies an opportunity, many systems don’t just tell you of the opportunity, but can take care of the next steps.
Many predictive seller platforms allow estate agents to send automated letters to identified leads as well as schedule reminders for follow up material.
The Downsides of Lead Generation Automation
Though technology can come in handy much of the time, there are some occasions when you may be better off without it.
If some of these aspects of lead generation worry you, then going the route of AI might not be suitable for you.
1. The Accuracy
AI, although a smart technology, isn’t always right.
You could end up reaching out to homeowners with no intention to sell. This wasted effort can be demotivating and discouraging to your staff.
Predictive tools are expensive to create. As a result, estate agents have to incur often heavy fees to pay to use the service.
As with any marketing, there is no guarantee that it’ll work and the marketing budget is thrown down the drain.
If your competition is using the same predictive seller tool, they could be reaching out to the lead before or at the same time as your own estate agency.
This cancels down the purpose of using the tool, i.e. getting there ahead of the competition and securing the lead
4. Is it too early?
AI is still in its infancy. Year on year the improvements are accelerating steeply.
What we are using now will be obsolete in a couple of years.
Data and algorithms may not quite be there yet to provide results estate agents are looking for.
When You Should Use Predictive Analysis
While predictive analysis isn’t for everyone, almost anyone can benefit from it at some point in their marketing journey. Whether you’re just starting out or have numerous properties under your belt, you may find that using an AI or program to help you generate leads is all for the better.
If you don’t have time for the menial work because you have too much else to manage as an estate agent, using AI for predictive seller leads can save you the time you need to dedicate to other responsibilities.
Using a third party to access potential sellers also means you get information back pretty quickly rather than researching them independently. This automated process allows you to be the first to jump on a lead and make an offer.
With the market remaining hot throughout 2022, you might encounter more competition in the market. If you want to beat other estate agents to a property, choosing AI will help you get to a listing with the speed it takes to secure a deal.
The time you save using a program could allow you to dedicate your attention to another aspect of your business. Consider opting for a program to do the work for you if you feel like you’re barely keeping your head above water with all these responsibilities.
Outpacing an AI requires you to be “on” all the time — so it’s a great tool for fast acquisitions if you’d rather have quantity over quality and can’t spend much time worrying about generating leads.
How You Can Generate Leads on Your Own
If you feel somewhat satisfied with your approach to lead generation so far, consider finding leads manually, as you have been.
There are many proven ways to find them on your own, and you can follow a simple path to ensure you get what you need and the properties you want to own.
1. Rentround for seller leads
Our comparison platform Rentround, gets thousands of sellers & landlords looking for an estate agent.
Once you have registered your agency, you are shown in comparisons and in with a chance of getting picked by the seller or landlord.
We charge £49.99 + VAT a month, no contract or tie in.
For 50% of your first month, use code RENTROUND13 when signing up.
Click here to learn more
2. Start in Your Circle
Start with your immediate friends and family if you don’t know where else to turn. Post on social media and contact them, asking if they plan on listing a property at some point. You may gain some attention, and you could come across a friend interested in selling to you.
Even if you reach out to everyone, you may not get any results. If your inner circle doesn’t think they’ll be selling anytime soon, ask them to pass your name around as someone interested in buying.
3. Expand Your Reach
Word-of-mouth might be the best way to acquire business. If someone who knows and loves you passes word onto someone else about you, you can count it as a positive review. That person interested in selling may be more likely to contact you with information about their property.
Negative word-of-mouth can be just as powerful. Try to show interest without being overly pushy. When you have someone advocating for you in the most positive way, you might realise you drum up more business than without. People value their loved ones’ opinions more than reviews online — so always ask someone to advocate on your behalf.
4. Try Out Social Media
Social media can be an exciting tool. You can generate leads by targeting the right audience if you employ it correctly. Come up with a creative ad for your business with the intention of buying homes or other properties from people. Use the platform’s advertising tools to target people using certain demographics.
You can also join groups on Facebook dedicated to buying and selling. This way, you can build up your list of potential contacts while expanding your network and realm of influence over your area. Share insightful, valuable tips with people who need it, and you could soon be looked at as an authority.
5. Nurture Your Leads
When you have a lead, it’s important to nurture them. You need to show you care about doing business with them. If someone signs up for your newsletter, make sure to include them in your future emails. Let people know what your current feelings and projects are — a taste of who you are can make you more personable and someone they would more likely work with.
Check on them. If you haven’t heard from a lead in a while, reach out to them. Ask if they’d still be interested in making a deal with you. They may have gotten too caught up in life and would appreciate you contacting them. If not, remind them that you’d be willing to work with them some other time, whenever they’re interested in selling.
6. Repeat Your Process
Once you find a routine that works for you, you shouldn’t have to change it up. Repeat your process when you feel comfortable with it. You may have multiple steps of the cycle repeating at once. When you have various leads to manage, you might find it difficult to juggle other responsibilities as a real estate investor or property manager. In this case, you might find it more worth your while to rely on a program that can generate leads for you.
AI or Manual: Which Is Better For You?
There are no one-size-fits-all solutions for every estate agent. Make sure that the route you choose fits your business.
Remember that you should always do what’s best for you, not what works for everyone else. Figure out what is best for your workflow. If you are just starting out, choosing to personally curate the properties you’re interested in might save you from weeding through listings you don’t care about. However, if you already own a plethora of properties, relying on a program to do the tedious part might help lessen your load.