From about a dozen different sources that keep track of Real Estate statistics we get the following;
- The number of people that expect to move within the next year = 1 in 9
- Those that will consider selling within 1 year = 12%
Those numbers are two ways of saying the same thing. Those are the people I call Mr. & Mrs. Right Now.
Those are the people that 90% of all Real Estate Agents spend 100% of their prospecting time trying to find and talk to.
The other group, those I call Mr. & Mrs. NOT Right Now, will move within 5 to 8 years (based on other statistics from the same sources). Does it make sense to focus all of an Agent’s prospecting on the 12% and ignore the 88%?
Renters are within that 88%, the Mr. & Mrs. NOT Right Now group. Another statistic is First Time Home Buyers (AKA Renters) accounted for 32% of all homes sold in 2017. If they move every 5 to 8 years as the statistics imply, First Time Home Buyers 4 to 6 listings and closings over a 30-year period.
And here is the most troubling statistic of all: When they are ready to move, 85% of all home buyers would prefer to use the same Agent they bought from but only 13% do, because they can’t remember who they were or can’t find them now that they need them. Apply this statistic to the above group and calculate how much these customers are worth over a career.
Here is one last statistic. We are all bombarded with over 3000 advertisements a DAY. We ignore almost all of them. It amazes me that most Real Estate Agents spend all their marketing time, energy and money on their listings following the idea that “If you throw enough stuff on the wall, some of it will stick.” These prospecting strategies are all directed at the 12%, Mr. & Mrs. Right NOW.
It would be far smarter to build your clientele from the larger crowd and change from an advertising strategy (being a salesperson) to a relationship and authority positioning strategy (becoming known as THE advocate for the buyer and seller in your market). The results of that change will be that you will get referrals from far more people other than just those you have sold to. And remember, 60% of the sales made among the top 10% of agents come from referrals.