A real estate lead is a person’s name and contact information to become a potential future client. That person is a lead if you have only one means of contacting them; according to some “gurus,” they have a full name, a phone number (at a minimum) and have demonstrated interest in your services. A lead can be as simple as an email address. But don’t make the mistake of believing that just because you have an email address, a lead is a “dead end” or useless.
What is a Real Estate Lead?
A real estate lead is a potential customer that has expressed an interest in buying or selling a home. They may have filled out a form on a website, contacted a real estate agent, or left their contact information with a third-party provider.
Leads are often generated through online advertising and marketing campaigns. Real estate agents can use lead generation services to connect with potential customers looking for help with their home search or sale.
Leads are important for real estate agents because they represent potential customers interested in working with them. It’s important to follow up with leads quickly and keep track of their interests so that you can provide the best service possible.
If you’re a real estate agent, it’s important to monitor the different types of leads you receive. Some may be set to buy or sell right away, while others are in the initial stages of research. Understanding where your potential customers are in their home search helps you contact them when it’s most effective.
Using services that provide real-time updates based on user activity is a good way to monitor incoming leads and identify which ones are ready for immediate action. You can then prioritize your lead follow-up according to urgency.
Leads are not necessarily associated with any one person. They’re often generated by marketers who cannot contact buyers directly because they lack an established relationship.
These leads can include anonymous users who have filled out forms or requested information about properties online, people who have left their contact information with a third-party provider, or home buyers and sellers who have contacted a real estate agent.
How to Generate Real Estate Leads
- Send monthly or quarterly mailings to past clients with helpful material, such as tips, real estate news, a marketing calendar, or an occasional giveaway. This will remind them that you are still in business and encourage them to suggest you to a friend or call you if they need professional assistance.
- During out-of-town real estate conventions or workshops, hand out your photo business card.
- Contact other agents in the area and let them know that you pay for referrals from other agents. Send “just sold” postcards to areas you have recently sold or listed home.
- Join service organizations and clubs and let your peers know that you are a real estate agent. Get involved in the organization to show your peers that you are interested in the community, trustworthy, reliable, and knowledgeable about real estate.
- Create a real estate blog or website and offer visitors free information in exchange for filling out a questionnaire that you will use to create leads.
- Establish relationships with lawyers, paralegals, lenders, bankers, insurance agents, and other professionals who may have clients looking to buy or sell real estate.
Real Estate Contacts and the Most Common Mistakes Real Estate Agents Make
Stop missing out on great leads and start cultivating them. Let’s start with a simple fact: a real estate lead is a person’s name and contact information who could be a future client.
Don’t get me wrong: you want to move the lead forward, turning them into a prospect, then an interested client, and finally a closed client. That’s not unusual. All leads with a legitimate contact method are viable—even those where all you have is an email address.
Want to find out why “dead-end leads” are not available on Facebook?
First and foremost, that lead is almost always associated with a real person (it is Facebook, after all).
Since you have so much “information” about the lead, Facebook is one of the best places to harvest them. You can easily get to know them on a level that is impossible to get with traditional email signups or even strangers you meet in line at the grocery store. Secondly, every lead is viable.
All you have to do now is a move that leads through the system.
And, as part of that process, you must understand how to convert real estate leads into customers. Just because a lead isn’t ready to buy right now doesn’t mean they won’t buy or sell in the future. It only indicates that they are members of the majority; they are among the majority of potential clients who are not ready to use your services “right now.”
That’s why you must be in front of their eyes at the right time; offer messages and calls to action at all times, appealing to their various stages of readiness.
On the other hand, capturing and converting a lead takes time; these prospects are likely facing the biggest financial transaction of their lives. They must balance their desire to buy with their financial resources; it takes time.
The common mistake; made by real estate salespeople is to believe that if a lead is not ready right now, it is a dead-end, and they abandon that lead. As a result, they are continually moving, generating more and more leads.
That’s why it’s so important to nurture your leads. You’ve invested time, effort, and money to generate the lead; now, it’s time to nurture it. Stop treating those who don’t buy or sell right away like lepers; start treating them like the priceless jewels they are.
Establishing an impressive lead nurturing process involves thought, time, energy, and, yes, money. However, the time, effort, and money invested will pay off.
You will transform your mindset, efforts, and approach when you sincerely feel that no lead is a bad lead. Your business will take off if you start devoting effort to nurturing it. Put another way; spend 20% of your time generating and 80% of your time converting.
Important Types of Leads to Understand
- Do you receive a list of possible leads from your real estate office and are told to contact them? How many among them are a possibility of time waste?
- This is because they are unqualified leads. Someone who is not set to buy a home right now is considered an unqualified lead. Other criteria to consider when determining if a prospect is unqualified are
- They can’t purchase a house because they don’t have enough money.
- They are not sure whether to offer or purchase a home.
- Unqualified leads have a higher abandonment rate, making them less likely to work with you again.
- They have never encountered your realty firm. So, they have not yet initiated the selling or buying procedure.
- They usually do not become clients who then suggest you to others.
- In contrast, a qualified lead has gone through the sales/purchase process and has the following characteristics.
- They have done their homework on possible firms.
- There is a stronger bond between the client and the agent.
- Next, they know what they require and the reason they require it.
- They are aware of their financial constraints.
How do you Qualify Potential Clients?
Some agents waste their time with any lead by not having a structure for qualifying leads.
Before you create a qualifying system, you should be extremely clear on the sort of lead you would like to deal with. Consider the types of customers you want to work with (FSBOs, past-due customers, or both), the places you want to work in, the client’s salary level, and the type of house you want to find.
After that, you may create a customer profile, which effectively represents your ideal customer. With this degree of clarity, determining who is a qualified customer for you and who you may recommend to another agent will be simple.
Working with potentially tricky customers or on complex sales that are easy to refer to may save you effort and time in the long run.
It’s a good idea to start by qualifying prospects on the first contact. They may have been directed to you, you could have had an initial interaction with them, or they could have filled out a form on your website. The BANT technique is a straightforward approach to a lead qualification that concentrates on the questions posed:
Budget: What is the maximum amount of money they can spend on a household?
- Do they make all of their purchasing choices on their own, or do they use the assistance of others?
- How quickly do they need representation by an agent?
- When do they want to purchase, and when do they want to sell?
While this is a primary method of storing multiple leads, you want to choose the best lead for their requirements. A more in-depth approach to scoring a lead might include questions such as the area they want to invest in.
Frequently Asked Questions
What should you do with unqualified leads?
According to surveys, only a tiny percentage of leads are inclined to order or offer at this time. Not only that but up to 80% of leads are closed after five interactions. Only 8% of salespeople, on the other hand, follow up on many occasions.
As you can see, building a connection with unsuitable leads is crucial if you want to transform them into qualified consumers later. You may add them to a mailing list for a newsletter and engage them once a month. After that, you may phone them each 3-4 months to check in with them.
Is buying real estate leads a good investment?
If you do not yet have a large network of contacts or referrals, but want to expand your business, buying leads online is a good investment. Investing in lead creation is only worthwhile if you follow up with each lead diligently and consistently.
What are the costs of real estate leads?
Real estate lead generation companies charge varying rates depending on the region and the number of leads requested. Some charge a few hundred dollars for onboarding, while others have no upfront fees but charge hundreds of dollars or more each month, plus lead prices that can range from a few dollars to thousands of dollars.
You typically pay for leads every month, and you can set a budget or modify it based on how your business is doing.
How many hours a week do you have available to nurture leads?
Approximately 10 hours or more per week!
Where can I find real estate contacts?
- Create partnerships.
- Host a housewarming celebration.
- Become a regular at a restaurant.
- Handwrite a letter to the person you are sending it to.
- Use the Internet to promote your business.
- Use more traditional media to promote your business.
- Create your website.
- Create a niche for yourself.
- Use “Coming Soon” signs.
- Attend an open house.
- Use LinkedIn to generate leads.
- Organize educational events.
- Don’t overlook the importance of leads.
- Look for “For Sale by Owner” ads.
- Contact expired ads.
- You can generate referrals by relying on satisfied consumers.
- Job divorce is the result.
Is it worth hiring a lead generation company?
Real estate lead generation companies are worthwhile if you can receive a good return on your investment.
A good real estate agent knows how to generate leads. A lead is a piece of information about a potential buyer or seller in real estate. Rather than targeting the general population, it is more effective to target people thinking about buying or selling a home.
When contacting a potential client, the real estate agent has an advantage over other agents if the lead comes from someone they know and trust.
Sheena Whitlock, a property expert, and blogger with over 15 years of experience in the field. The knowledge and skills Sheena has acquired during her career have given her invaluable insight into the property management business.
She has done her Property Development BSc (Hons) from the University of Portsmouth and completed her Master’s Degrees in Property Management from the University of Chicago.
As a professional, she has spent time working for various companies as a property management officer and currently works at Asset Info Hub where she shares her knowledge and experience on various property matters with people around the world, questioning their queries via blogging and virtual consulting services.