Realtors Pay Too Much For Real Estate Valuation Leads, Expert Says – Property Industry Eye


Mark Taylor

Real estate agents are paying too much for property sales leads, according to new research from a call tracking platform.

Findings from a study conducted by Call360 claim that estate agents will collectively pay around £ 220million this year to acquire clients.

Call360 says real estate agents typically seek to pay up to £ 250 for each successful instruction to sell a property through a variety of lead sources – from Google ads to property aggregators.

Research has found that less than 2% of the real estate agency market is currently using the technology, and argues that agents could potentially win many more businesses by following this method – frequently used in retail and recruiting – to reduce the cost per acquisition.

Mark Taylor, CEO of Call360, said, “The real estate agency profession relies heavily on aggregators to generate valuation leads. But analyzing incoming calls at the branch and call center level will significantly reduce the cost per instruction for an agency.

“Advances in artificial intelligence and automated analytics have enabled industry-leading companies to close the loop between online clicks and high-value sales conversations over the phone.

“The real estate industry has enormous potential to use AI to control its marketing spending. Just knowing which sources are good for evaluating prospects versus low performing ones could save 20% in marketing spend, not to mention the time saved by not looking for low-quality leads. Without this data and information, agents will continue to have to rely on very unsophisticated portals and spend for web search. “

Call360 claims the industry is too dependent on aggregators. It points to data from Google showing that 71% of online searchers still call realtors with their initial request.

This break in the sales chain means agents don’t always know exactly how their online campaigns are driving results, according to Call360.

Taylor continued, “Realtors can’t always value their online spend against keyword-level results, so they’re not able to optimize their online campaigns. From our experience in the industry, we know that, as a result, agents have a hard time knowing which sources of lead are the best and the worst.

“AI can drive a much higher level of data analysis by closing the loop from online clicks to offline sales. Agents with improved conversion data – and there is very little of it – are optimizing their media spend to develop instructions. “