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How Many Homebuyers Are In Your Market?

By: Matt Jones
 

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Ever wonder how many people are buying and selling homes in your market today?  Take a wild guess!  Wilder.  Now double it.  You’re probably still low.  I’ll show you exactly how to find your own accurate number.

First you need to log into your MLS and find out how many transactions closed in the last twelve months.  Write that number down.  In my MLS, the total number of closed sales in the last twelve months was 5,425.  For each closed transaction, there was, by definition, one buyer and one seller.

Now divide that number by 4 and you have the approximate number of buyers and sellers in your market right now.  Okay, Matt, so why divide by 4?  Easy enough: The average buying cycle right now is 13 weeks.  A year has 52 weeks, so divide 52 by 13 and you get 4.

In other words, at any given time one fourth of those buyers and one fourth of those sellers are in the process of buying or selling.  For my market that is 1356 buyers and 1356 sellers that will actually close.  That’s 2,712 customers that will close.  That’s a lot!

But it’s really higher than that.  Here’s why.  This year will be bigger than last year in almost every city, simply from demographics and population growth.  So in all likelihood, your number is actually higher than what you just calculated.

And remember, those are closings, not just clients.  Statistically, only about 80% of buyers who write contracts ultimately close, and only 50% of listings actually close, so the total number of customers is even that much higher.

Next check your board roster and see how many agents are in your market. Now do the math.  Are you getting your fair share of all that business?  If you’re not, is it because you are not trying?  Or is it because you need to try something different?  Odds are, if you’re reading this it’s because you need to try something different.

Think about it logically for a minute.  Where are nearly all (94%) of our customers looking in their search for homes?  Online.  And yet according to the latest data from the National Association of Realtors® over three-fourths (76%) of all agents received less than one inquiry per month from their website last year.  That’s a huge disconnect.

And that explains why a lot of agents are not getting their fair share of the available business.  Today, unlike any time before, it is the “haves” and the “have-nots”.  Feast or famine.  You are either making a killing or you are getting killed.

When I started real estate 11 years ago,  I was a “have-not”.  My website was just like everyone elses and I was getting less than one inquiry a month.  But I set out to fix that problem and I ultimately invented a technology called an LCM gateway that turned my practice around — so much so that I was featured on CNN.

If you’re not familiar with this technology, an LCM gateway is a simple website designed to either stand alone or work with another website, and its sole purpose is capturing online shoppers.  And it works phenomenally well at capturing business.  Just how well?

Take a typical website (like mine was) that brings in no business, and add an LCM and some free advertising and you have 2-3 inbound customers every single day, day in and day out. And that’s using free advertising.  Some brokers generate as many as 50-60 leads a day using my LCM.  Think of it as a turbocharger for your website.

You may be thinking this sounds too simple to be true.  It does sound simple.  Under the hood, it’s not simple at all, but from the agent’s perspective, it is very simple.  In fact, I’ve been told that my LCM is the holy grail of online lead generation.  I don’t know about holy grail, but I can tell you this:  In eleven years nothing else even comes close.  No other website.  No other technology.  Nothing.

I used to tell agents that my LCM is not a magic bullet, but one day I realized it IS a magic bullet, at least it is for anyone struggling to have enough business, and that means the majority of agents today.  I could relate hundreds of stories but let me give you a couple of my favorites:

Take Kevin, a truck driver and part-time agent that wanted to make some extra money.  We helped him set up his LCM and in three months he had a choice to make:  Should he quit driving his truck and start doing real estate full-time?  After all, his part-time income was more than his full-time job.  He decided to go for it!

That first year Kevin made $351,623 and the next year he earned $541,298!  Having a never ending supply of business changed his life.  Made him rich too.  He bought a brand new SUV, a brand new convertible, and a 6,000 square foot mansion with  a 5 car garage, a detached office, and an olympic sized pool.  And that was while the market was still tanking.

Or there’s Charlyn, a single mom and new full-time agent who wrote:

charlyn

“Matt, I HAD to email you. I’ve worked in and around the real estate business for years, but this is my first year as a full time agent.  I found your LCM technology last month, and I immediately knew that that’s what was missing from my practice. I set it up and posted my first free ad in about 15 minutes just like you showed me and I got two customers overnight!!! I called one lead immediately, got them qualified the SAME DAY, and now we are closing just three weeks after showing them their dream home!

Plus, I’m still getting 3-4 new customers per week from my FREE ads. I can honestly say I’m thrilled about my future in real estate, because I don’t have to worry about where my next customer will come from! Thank you!!!”

But don’t just take their word for it.  Give it a try.  Unlike most technology, there’s no long term contract, and there’s no activation fee.  In fact, the cost of having the very best online technology for gathering business is a lot less than you might think.  It’s less than a cup of Starbucks a day.  That’s right, less than a cup of Starbucks a day!

Listen, I want you to imagine what it would be like to have your fair share of the business currently closing in your market.  Or maybe more than your fair share.  Wouldn’t it be nice to have so many customers you could cherry pick the ones you wanted to work with and hand the others out and collect a referral fee?  One referral fee could pay for your LCM for a year!

So give it a try.  I mean really, what do you have to lose except maybe some advertising bills.  Give it a try and you’ll see… you’ll have more business than you can handle starting your very first day.

Take The Test Drive!

Have you ever wondered what the best system for creating new business from the internet looks like? Want to see it in action? Finally, an interactive demo that allows you to sit in the driver's seat and check out the system that has revolutionized single agent lead generation for the real estate industry. Begin the Test Drive


Matt Jones PhotoMatt Jones is the founder and CEO of FavoriteAgent.com, nationally syndicated columnist, broker, and best selling author of LCM: The Secret to Success in the New Age of Real Estate, The Ultimate Listing Presentation, Traffic: How to Sell Fast and Net More, Becoming a Mega-Producer, The Science of Online Marketing, 10 Steps to Real Estate Success, 20 Questions: Everything You Always Wanted to Know about Real Estate but Were Afraid to Ask, The Virtual Office Model, Max-Bang!, and The NEW Ultimate Listing Presentation. Jones' North Carolina-based company has been profiled by major media outlets as an innovator and a pioneer in the industry, and CNN's Pulse on America claimed FavoriteAgent.com is "changing the way real estate is being done in America." This article is syndicated in the following locations: iTunes, YouTube, Stitcher Radio, BlogMattBlog.com, RealBlogging.com, NewsGeni.us, TheCommissionCheck.com, RevampedAgent.com, and now Amazon Kindle.

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