Leads, Conversion Rate, and Close Ratio Explained Simply!!!

Sujan Afi S


Terms like “conversion”, “close”, “leads”, etc. are used quite often in the field of real estate. But these technical terms might be pretty confusing for some of us. The proper meaning of such terms, in many cases, depends on the person who uses those terms. Multiple meaning of the same term increases the confusion further. Hence, it becomes quite important for the realtor or real estate agent and others associated with the real estate sector to know the proper meaning of these terms for smooth conduction of the real estate business. In this blog, we are going to discuss important terms “conversion” and “close rates” in property management in the real estate sector. So, let’s dive deep!

  1. What is Lead?

The term “lead” is quite common in the real estate sector. It refers to detailed information like the name and contact of someone who can become a potential buyer or client in near future. A real estate agent always wish to transform a lead into a potential buyer or client. Various digital platforms help increase the number of leads. It is the responsibility of the realtors or sales professionals to turn them into potential clients. Leads are of two types: marketing qualified lead and sales qualified lead.

  1. What is the Conversion Rate?

Conversion rate can be defined as the percentage of visitors who become a contact out of total traffic. In other words, the conversion rate is the percentage of visitors who initiate/take the desired action like purchasing, filling in forms, making registration, taking a subscription, making a phone call or message, downloading software or any other activity beyond simple browsing. 

Example of conversion

If there is a total number of 5000 visitors submit the filled-up forms and become contacts of yours out of a total of 100000 visitors then your conversion rate is {(5000/100000) × 100)} = 5%

  1. What do you mean by Close Rate?

Close rate is also known as lead-to-close rate or closing ratio. Calculation of close rate is very important in real estate sectors, especially for future planning. The close rate can be defined as a measure through which one can easily understand how the sales professionals or a sales team of a company performs. In the case of the real estate sector close rate is calculated to understand how the real estate agent or sales professionals successfully transform the leads into potential customers. Through the calculation of close rate, he/she can easily track the number of sales or real estate deals that have been closed in comparison to the total number of leads or proposals. Therefore, we can say that close rate is the percentage of leads that finally turn into a client. The close rate can further be divided into two rates: lead-to-opportunity rate and opportunity-to-deal rate.

Example of close rate

If there are 100 leads out of which a salesman can close 25 deals then the close rate or closing ratio is {(25/100) × 100} = 25%.

The close-ratio can be calculated for any time period (month, year, week, etc.) But it is preferable to choose a period longer than 3 months while calculating the close rate.


Understanding the technical terms is not quite easy. But don’t get tensed. There is a saying, “When you practice something, you automatically become a master in it.” So, when you get into the field of real estate, you will learn things automatically from your seniors and from your own mistakes too!

Nevertheless, you can reach the people who can positively guide you. Roodland is the right one to approach as they have experienced experts who can help you solve your doubts regarding the RE market. Just drop a mail at info@roodland.com to book an appointment. Also, visit our Real Talks platform to get more informative articles on real estate topics! 


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