Tools varied, competition fierce for real estate leads

By Ed Duggan

02/05/2004

If "location, location, location" is the mantra for real estate owners, "leads, leads, leads" is the mantra for real estate salespeople during both good times and bad.

Some companies are going to extraordinary lengths to secure solid leads.

"The market has become very competitive, with an unbelievable supply of new condominiums, townhouses and lofts coming onto the market," said David DeMuth of Boca Raton-based DeMuth Realty Services.

Competition has never been fiercer and the tools more varied.

"The race to sell the inventory starts with the race for leads," he said.

Turnberry International Realty is renting a kiosk in the Aventura Mall that costs more than $95,000 annually. An estimated 19 million people pass through the shopping Mecca each year.

Turnberry earns back some of its investment by selling advertising space on the kiosk exterior to developers of new residential projects. The kiosk has paid off handsomely for the aggressive resale firm, generating 20 percent of annual sales.

"Last year [2003], we secured more than 2,500 kiosk leads," said John Warsing, managing broker for Turnberry. "More than 150 of those leads have already converted to sales and we're doing 10 to 12 deals a month consistently."

In 2003, Turnberry had 568 closed sales worth $214 million.

"When we first started the kiosk a number of years ago, it was received as punishment by the agents assigned to staff it," Warsing said. "Times change. Over the last five years, it's been impossible for any sales rep to pick up an extra shift."

Majestic Properties is a sales agency for hire by developers of new or converted condominium properties.

"Our leads come from signage, print, Internet and referrals," President Jeff Morr said. "The Internet is coming of age. Our Web site gets more than 9,000 hits a day."

More than 600 people spend more than six minutes at the site, indicating high interest.

"The can talk to an agent online through instant messaging during an agent's floor time," Morr said.

North Palm Beach-based Illustrated Properties has a major lead generation program that feeds its 470 Realtors in 20 South Florida offices.

About 7 percent of its $1.2 billion in sales last year came from its membership in RELO, a Chicago-based relocation referral service with major corporate accounts.

Nearly 10 percent can be traced to its Web site.

"Nearly half our leads come from signage, classified advertising and real estate magazines," said F.F. "Chappy" Adams, Illustrated's president. "And we have a great deal of lead development from local group moves. A typical one was Pratt Whitney a few years ago that involved 800 local homes."

The company also secures very high-end leads because it is an affiliate of the Christie's Great Estates program.

"Those are $1 million and up buyers," Adams said. "The leads are few, but very powerful."

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