Why Understanding the Homebuyer Journey Is Key to Nurturing Real Estate Leads

The needs of today's homebuyers are changing, so it's more important than ever to understand the journey your clients take when it comes to buying a home.

In a perfect world, the process of guiding a potential client through a new home purchase goes something like this: You capture a real estate lead through your website (or get a referral), you make contact with them within a few minutes, and qualify them as an opportunity. Next, you set up a few showings you have something under contract within 30 days.

Unfortunately, it's not that fluid. Nurturing a relationship with a potential home buyer requires much more time before they convert. Your lead nurturing plan could span several months or years (the homebuying journey takes around 11-27 months), so it's important to build a foundation for a long-term relationship. Here are the different stages of a real estate lead lifecycle and what you should know about nurturing leads at the right time and in the right way to maximize your pipeline ROI.‍

Consideration (2+ years before closing)‍

At this stage, home buyers are thinking: What type of home do I want? What areas do I want to consider? Is now a good time to buy? Leads in this stage have likely not actively pursued an agent. So, your first contact should be an introduction, letting them know you're available to answer questions without pressuring them to make a decision. Let them browse, but make yourself known. Remember, the first agent to make contact with a real estate lead is 238% more likely to convert, per a Market Leader report.

‍Online Research (1 year before closing)

At this stage, home buyers are thinking: What can we afford in our area(s)? What are the demographics, schools, etc. like in the area(s)? Leads in this stage have started to browse listings, but are not yet ready to buy. Ninety percent of all home buyers start their home search online, according to NAR. They're also more likely to communicate via the web. Make sure your website is up to date and communicates your brand (you) and the unique value you offer. Once they've made contact on your site, send them relevant, helpful information to establish a connection and start building trust.

‍Active Search (4 months before closing)

At this stage, home buyers are ready to start touring homes with an agent. They want to know: How many homes have you sold this year? How well do you know the area(s) of interest? How will you help make this process easier? Real estate leads in this stage are aware of what they want and can afford, and want specifics about the buying process. You need to make yourself available for showings and offer recommendations based on their criteria. Timely response in this stage is crucial, so be prompt in your communications.

‍Transaction (1 month before closing)

At this stage, home buyers need an agent to negotiate contracts and guide them through the purchase process. They are thinking: How much should we offer for this home? What are the contingencies? Are we competing with other buyers? This is your chance to shine. Provide exceptional service and guidance, resources, and referrals. On average, it takes 23 days to negotiate a home purchase, so be upfront about the timeline and logistics. By establishing trust, you are giving them a reason to work with you again and refer family and friends.‍

Post-Sale (2+ months out)

At this stage, home buyers want to know about changes in their home's value and what's trending in the marketplace. Keep in touch with your clients by sending information about the local real estate market and their home's current value. This helps to ensure repeat business and referrals when the time comes to sell or buy again, or when a friend is looking to purchase a home. Connect with them on social media and use automation tools to stay in touch via email and text. NAR reports that 90% of buyers would use the same agent again or recommend their agent to others, so put effort into generating repeat business.

The important thing to remember about lead nurturing and the home buying journey is to engage in the whole journey, not just the transaction. Part of an agent's playbook for lead management should include using a tech platform that automates lead nurturing, so you're always engaging with clients and ensures you never miss an opportunity to convert. Because when it comes to engaging with homebuyers, trust and speed win.

To view the original article, visit the Inside Real Estate blog.