Ask HN: Why is my conversion rate so low for my real estate startup? | Hacker News Reader

Ask HN: Why is my conversion rate so low for my real estate startup?

3 pointsscottndecker13 comments

Two months ago, I launched my startup to allow homebuyers to send a letter to homeowners to see if they'd be interested in selling their house. I've paid for fb and Google ads to send some traffic there but we're not seeing the conversions. People visit the site, a handful sign up, but no one sends a letter.

Looking for constructive feedback. Do I just need more traffic? Is there something in the messaging that's turning people off to trying it? What am I missing?

Everyone I actually speak with is super encouraging, loves the idea, definitely says they'd use it, but I'm having trouble finding those first customers.

https://drawbridge.us/

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Let's see if I get this thingy right:

1) you have a database of homeowners (possibly public data) and (somehow) their e-mail addresses

2) for a fee you give this address to a user

3) the latter can thus cold e-mail the owner asking if he/she wishes to sell the house

So, if the thingy catches, homeowners of nice houses in good areas (and that have no intention whatever to sell their home) will be spammed by strangers.

BTW - and IMHO - the "conversion rate" of 90% opened letters are seemingly meaningless metrics (unless we have some comparison data on how many people opens "random" letters they receive), it would be interesting to know the "conversion rate" of letters actually leading to a sale.

Maybe it is a US thing, I wouldn't even think of sending letters to perfect strangers telling them I would like to buy their house (and possibly making an offer for a house I have not even visited).

Maybe a US thing? Yes, people do this. Quite a bit right now especially because there is a supply shortage so buyers are desperate to find houses for sale. Not unheard to get bid out by cash buyers going well above asking price. So the possibility of finding a home you love before it's listed on the MLS is attractive to buyers.

Hmm, from my imaginary buyer's point of view I don't see how much it will cost to add you as an intermediary. Fixed rate? Percentage? I mean I signed up with my Google account but then was asked to give my phone number, and... yeah that's about where my own drawbridge tends to be commonly raised, especially when I know so little. So I aborted. I mean my instinct said that maybe if I were really interested in a property I could just, like your site mentions, send a message to the physical address and then if that didn't work maybe come back and give out my personal number, maybe even after looking online for the owner. The site looks nice btw.

Ok, so you're saying remove the phone number question? It's optional and we have a public flow where you don't register till most of the way thru (click Send Letter button on home page without being logged in and you'll see what I mean).

Thank you for the feedback! Keep it coming!

I don't have statistics, but I guess a home is sell once every 20-30 years, and is in the market for 3 months. So if I sell a cold offer to buy it, there is a 1% chance that it's on sale or the owner is wiling to sell it.

Most home sells have a reason, for example the owner died and the children and selling it, or the home is too small because they have a new children or too big because they have an empty nest. So outside the period it's in the market it's very difficult to convince the owner to sell.

Selling a house involve a lot of taxes and commissions, like 15% here in Argentina, perhaps more. So if I have to sell my home without a good reason, the buyer must pay like 20% more to cover all my fees and taxes. Add the fuss of moving (1 week to package, and 1 week to unpackaged, does the house need painting?), looking for a new home (1 month), smiling to the real state agents that while they try to screw me, discussing with my wife because she likes another house, crossing the finger because the new home can have the plumbing made of painted cardboard, or a very noisy neighbor, or a crazy neighbor, ... so to convince me to sell my home in a cold offer, you should add a 50% premium to the price.

With a 50% more of money, the buyer can get a better house, or have a lot of freedom to fix other house.

Don't know in the US but here in the UK the vast majority of people sell through estate agents. If you're looking to buy then you give your details to estate agents so that they can contact you when something comes up.

Now if you find a house that you really like then it costs nothing to leave a card through the letter box. Still, I guess homeowners might be a bit suspicious and not comfortable going alone without estate agent (if they'd consider selling at all)

Yeah, same in USA in regards to most people using real estate agents. But lots of people are sending letters right now due to the supply shortage. This is a more convenient way to do it.

a) you can do it entirely from your computer

b) you don't have to drive anywhere or go door-to-door

c) you get feedback on who opened and read your letter

d) you're guaranteed it'll go to the homeowner, not just the tenant (if it's being rented out at the time)

e) you get a professional introduction that signals to the homeowner that you're serious; more so than someone that just prints off 50 copies of a letter on their home printer and drops them like flyers on doorsteps.

I think an issue with that thinking is that people don't choose a home from their computer. They want to drive to the area to get a feel for it, they want to see the houses.

In addition, unless the homeowners have also previously signed up with your service (in which case why not an estate agent?) then, IMHO that's still a flyer on the doorstep (as opposed to manuscript and personal letter if I leave a card).

>e) you get a professional introduction that signals to the homeowner that you're serious; more so than someone that just prints off 50 copies of a letter on their home printer and drops them like flyers on doorsteps.

A professional introduction by whom?

A web only start up that "introduces" two perfect strangers for a fee?

Google offers a free multivariate testing suite.

https://optimize.google.com

You can form hypotheses, but without testing these are only guesses. Consider talking to users who land on your page. There's no substitute for talking to actual users. Typically a live support chat box is used for this purpose.

Get professional help:

https://www.roastmylandingpage.com/

https://drawbridge.us/

like the idea, like the site.

you need to find home flippers, i would guess.

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