Here's what I don't get about Zillow is how these teams afford to advertise in some of these zip codes where leads are costing $150-250 each for a $450-550k avg. sales price. Okay so crunching nubmers I think a 3% closed ratio would be very good.
SO if you're selling 500k homes on average making $14k checks and you need about 33 leads at $200 each to close one..
buyers agents normally take 40-50%.. those are razor thin margins for the team leader..
$6,000-$7,000 to the buyer agent
$6600 ad spend
Where's the margin? I guess the margin is in that some people need to sell and buy and also they might refer a friend if they like you.. still can't figure out why people are paying that much for leads though when I know of nearby areas where you can sell $300k homes for $25-40 leads...
Maybe buyers agents have to pay for some of the ads or they receive more like a profit share than a % of the gross...
Edited by ibsellin (12/22/16 11:30 AM)