Why don’t we use direct mail to obtain real estate buyers?
Every day, realtors who are interested in converting renters into buyers ask for our assistance with direct mail postcards. While we’re happy to assist them, we don’t recommend that our real estate clients utilize postcards or other direct mail for this purpose.
Direct mail is a far more effective strategy for obtaining listing leads. However, if you are interested in attracting buyers, there are other lead-generating strategies that dramatically outperform direct mail.
One of the most effective strategies for finding buyers is online marketing. For example, you can setup an IDX-based website, preferably one that has “forced signup” so that users have to provide you their contact information to view properties There is also the option of paying money for leads.
Services like Zillow Premier Agent are considered to be top-notch lead generators, especially for buyers. Price per lead can fluctuate widely depending on your market, but even in the long run, purchasing buyer leads will produce a greater ROI than direct mail postcards.
The Most Important Reasons Why Direct Mail for Buyers Doesn’t Work
There are two key reasons why a direct mail campaign isn’t effective for obtaining buyers from renters:
1. It’s Difficult to Target the Demographics
People rent properties for a variety of reasons, and those reasons can vary depending on the type of region they live in. For example, renters near a major university are completely unpredictable in regards to where they will buy their first home, and the owner of the property isn’t likely to receive any direct mail, either. Sometimes people just prefer renting, so it makes sense to target people who already own homes, which brings us to our second key reason:
2. People that already own homes are more likely to buy
Targeting renters requires several different marketing tactics, including:
· Convincing them that buying is in their best interest
· Educating them on what purchasing a home is about
· Encouraging them to get pre-qualified
When targeting listings, the strategy is more straightforward. The desire to sell their home has already been established by the prospective client, so it’s just a matter of positioning yourself as the best Realtor for the job.
Share with us in the comments below
Have you ever attempted to obtain buyer leads through direct mail? What have your results been?