April 6, 2024 | Reading Time: 3 Minutes
Lead generation stands as a fundamental pillar of real estate sales, demanding significant attention from agents. With the transformative influence of the internet on consumer behaviors in the housing market, agents find themselves adapting their business practices accordingly.
However, the efficacy of leads procured through major real estate search portals and the role of AI chatbots remain topics of interest and inquiry among industry professionals. Addressing these inquiries and more, a recent study conducted by T3 Sixty in collaboration with PrimeStreet note in detail lead generation success in the real estate industry.
The study reveals that social media and agent websites continue to hold significance in lead acquisition. Agents indicate that 25% of their online leads originate from social media platforms, while an additional 25% stem from their own websites. In contrast, the contribution from home search portals such as Zillow, Realtor.com, and Homes.com is comparatively lower, accounting for just 7.5%, 9.2%, and 5.2% of online leads, respectively.
Despite the attention given to online lead generation, the study highlights that a majority of brokerages report a modest contribution of online leads to their total sales volume. Specifically, fewer than 10% of surveyed brokerages attribute their total sales volume to online leads, with only 21% indicating that online leads constitute more than 26% of their overall sales volume.
Moreover, the study underscores agents’ readiness to invest in successful lead generation, with many demonstrating a willingness to outsource and pay considerable fees for the service. A significant portion of agents surveyed, 77.4%, express comfort in paying a referral fee of up to 20% for a self-generated, transaction-ready opportunity.
As for the integration of AI tools in lead generation strategies, the study reveals a nuanced landscape. While interest in utilizing AI is notable among industry professionals, with 47.2% expressing interest in incorporating AI into their lead generation and conversion strategies, adoption rates vary. AI chatbots, in particular, are less prevalent compared to live chat, despite mixed results with the latter. Interestingly, larger firms exhibit a more favorable attitude toward AI adoption, while smaller firms, especially those with fewer than 50 agents, display less enthusiasm, possibly due to resource constraints or perceived necessity.