Bernice Ross

As we put 2022 behind us and confront the challenges of high mortgage interest rates coupled with fewer sales and lower prices, marketing fundamentals will be more important than ever in 2023.  

It’s important to use proven ways to make sure that you’re generating and converting as many leads as possible in 2023.   

First, make face-to-face lead-generation activities your highest priority 

In the 2022 National Association of Realtors’ Profile of Home Buyers and Sellers, 80 percent of the sellers and 67 percent of the buyers only interviewed one agent that they hired. This means, regardless of whether it’s a referral, an internet lead, phone call or web inquiry, the first agent that meets in-person with a seller gets the listing nearly all of the time. Make sure that person is you!   

Next, how many incoming buyer leads did you ignore in 2022? According to NAR data, a whopping 58 percent of all buyers were living in a home they owned prior to when they transacted. For every buyer lead you receive, immediately follow up to see if they are also a seller and schedule a face-to-face appointment. Fifty-eight percent of the time, you will have the opportunity to list their current home and sell them a replacement property. For repeat buyers, that number is 77 percent! 

Some leads might be hiding in plain site in your own contacts database. Use a tool like Likely.AI’s free Database Refresh report to identify the share of your contacts who listed or sold their home in the last nine months, and the share likely to transact during the next 90 to 180 days. 

U.S. homeowners currently move on average about once every 10 years. If you have 2,500 valid contacts in your database, that means about 250 will move in the next year. Likely.Ai identifies who that 10 percent is most likely to be. If their prediction is correct at 30 percent level, that’s 75 potential listings waiting for you in your current contact database.  

Remember Your Referrals 

As you go through 2023, remember that referrals are still the best source of listings. 

According to this year’s NAR Profile, 41 percent of all transactions resulted from a referral – 36 percent were referred to their agent by a friend, neighbor or relative, and the other 5 percent were referred by another real estate agent. 

Based on this, you should devote at least 36 percent of your 2023 marketing budget to developing referral business from your sphere. 

But what does that look like?  

Instead of farming or shotgun marketing techniques to strangers, use your print and digital marketing budget to stay in regular contact with your sphere and past client list.  

You can also conduct regular client appreciation events. Food trucks and ice cream socials are always popular and relatively inexpensive as well.  

Another idea: Hold a seller seminar for those who may have to transact in today’s market. For those having financial difficulties, be sure to discuss why it may be smart to sell now before home values (and their equity) decline even more.   

Prospect 55-Plus Homeowners 

Two of the most surprising statistics from this year’s NAR Profile are the median ages of buyers and sellers. The median age of first-time buyers jumped from a consistent number between 30-33 years of age to a new high of 36.  

What’s even more surprising is that 65 percent of all sellers were age 55 or older. This tells you that you need to be devoting a major part of your listing budget marketing to these homeowners. 

Seniors are often forced to move due to financial issues, the loss of a spouse, mobility issues, inability to maintain a large home, or to live independently. To reach them, make sure you customize your print and digital advertising for these groups to show people who represent this demographic. Importantly, avoid using the term “down-sizing” and opt for “right-sizing,” instead. Make sure you learn the difference! 

You should also familiarize yourself with the over-55 independent living communities in your area. Many of these communities are eager to provide events that include holiday parties, speakers, local artists and musicians. Consider sponsoring these to remain front and center so when someone decides to list their home or condominium unit, they will contact you.  

Matching your prospecting strategies to where there is the greatest amount of business is the best strategy for achieving success in real estate market. Remember, once you generate a lead, the most important thing you can do to convert that lead into signed business is to schedule a face-to-face appointment. 

Bernice Ross is a nationally syndicated columnist, author, trainer and speaker on real estate topics. She can be reached at bernice@realestatecoach.com.