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Close Faster: How virtual tours can save you time
July 21, 2020 at 4:00 PM
by Chris Kostoulas
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In the real estate world, we’re used to low percentages when it comes to a showing converting into a rental application. The sad reality is that on average our chances are just 5-8%, meaning that agents often spend hours and hours doing showings before they finally get an application.

Virtual tours can boost these percentages pretty significantly -- in some cases to as high as 50%!

As renters increasingly shift their search process online, and (particularly in today’s environment), prefer to see as few apartments in person as possible, virtual tours can help you do more deals in less time.

Let’s take a look at the math:

The average chance that someone puts in an application based on a showing is around 5-8%. You’re a charming and knowledgable agent—so let’s assume that for every 10 people walking in through the door, you can get an application— 10%

We’ll call this 10% our “conversion rate.”

To do more deals, you want to show as much as possible. The rough math goes:

200 showings * 10% conversion rate = 20 applications (and hopefully, deals)

One easy way to show more is to host open houses, where 5-10 prospects can see the apartment at the same time. But this probably isn’t the best idea in the midst of a pandemic.

The alternative is to show the apartment 10 times, one-by-one or through FaceTime— but this is exhausting and time consuming. Between scheduling, travel back and forth, and the apartment walk-though, it can take up to 15 hours to get a single application in!

But what if we could boost your “conversion rate”? A virtual tour for every unit can do just that.

How?

A virtual tour for the exact unit allows a tenant to view, interact, and carefully inspect the apartment they might call their next home. Renters can have a high degree of confidence that they know what they're getting - the views, the finishes, and the layout.

Renters reach a level of confidence that even the best 2D photos can’t come close to providing. And by the time they ask for an in-person showing (if they do at all), it’s really just a sanity check.

Two units from the same "D" line.

Combine an interactive virtual tour with your knowledge of the building, amenities, and neighborhood and you have the recipe for success.

Let’s take a look at how a current peek partner is using virtual tours to boost conversion rates.

Joseph Covington of Compass is combining peek virtual tours with live Zoom calls, and converting in-person showings to applications at nearly 50%. Joe’s last 3 applications required just 1 or 2 in-person visits each.

(2 in-person showings * .5 conversion = 1 application)

“peek saves time and allows the client and I to interact and see several properties before physically having to book a tour”

With his portfolio of virtual tours, Joe had his best rental month ever despite the pandemic.

It’s clear the real estate landscape is changing. The process of renting an apartment is moving digital, and renters are expecting more information before they visit an apartment in person. Agents powering their businesses with peek are adapting and thriving in this new landscape - and you can too.

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