Lead cost is totally driven by market dynamics as it relates to the average list price of homes in your market. In other words, there is no one-size-fits-all answer. However, this will serve as a rough guide:
The instructions below on how to find your Average List Price and how to calculate how many leads you might expect will serve as a rough guide in normal markets. In fast-moving and extremely aggressive markets, you'll need to adjust your expectations accordingly.
- $100K-$299K Avg. List Price | $8-$12 a lead
- $299K-499K Avg. List Price | $12-$17 a lead
- $500K-$749K Avg. List Price | $17-$20 a lead
- $750K-999M Avg. List Price | $20-$22 a lead
- above $1M Avg. List Price | $22+ a lead
To calculate how many leads you might expect:
First, figure out what the Average List Price is in your marketplace:
Simply Google “[enter your preferred area] average list price” and Trulia and Zillow will give you a rough idea. Or, the better practice is to check your preferred area via your own MLS and then using the Average List Price.
Divide your Monthly Lead Traffic Budget (as shown in the chart above) by your Average List Price (as shown above) and you'll get a feel for the number of leads you might expect.
NOTE: that since PPC space is a pure auction environment where the agent, broker or entity who bids the most, gets the best ad placement, prices are set by your competition.