- 35% of sales come from past client referrals.
- 30% are repeat business (past clients)
- We are talking 65% friends
- 10% of our sales are generated by web sites
- 05% suggest the social media as a source.
This means that all of the money you invested in the wonders of communication has done little to increase your real estate business. I do not know how much longer Real Estate will remain a “people business.” Most likely it will depend upon where the money is. Remember the movie; “follow the money”? When the millennium generation, as they are described, finally pay off their college loans, and decide to settle for a home and family, perhaps they will turn to the social media for a realtor. Then again, it is extremely possible that a mother, aunt or close family friend is a licensed realtor.
Now the article also quoted expectations. It is anticipated that competition will increase next year in this manner:
- 48% of new business will come from non- traditional market participants.
- 42% from virtual firms
- 16% expect competition from what they refer to as traditional firms.
I don’t know about you; but I don’t build my business plans on expectations.
The most startling statistic to me was that today 81% of all real estate brokerages consist of 1 office with 2 full time realtors.
7% of the offices are franchised with 92 full time associates. *In the marketplace, those large offices are highly competitive in-house. (My experience).
The final statement in this article really got my attention. The statement was; that pending home sales fell slightly while contract signings were at the second highest level in over a year! What happened between signing and closing?