18 Dec How To Generate Real Estate Leads
Are you looking to generate real estate leads, but aren’t sure where to start? After being in the real estate industry for a few years, there are so many ways to generate leads, but here are seven that actually work.
Prospecting and Touch Points
If you didn’t know, the number one skill of any real estate professional is prospecting. That is basically your job, to always be prospecting. After all, it is the first step to start generating leads before you can convert them.
It typically takes 4-8 touch points to create a viable sales lead. That number can vary by the industry as well as your buyer persona. While four touches might be the perfect number for one agent, five or seven might be right for another.
Your touches can all come from the same lead source or it can come from a combination of them. In this article, we are going to focus on 7 lead sources you can use to generate real estate leads and dive deeper into how to best utilize them.
- Direct Mail
- Expired Listings
- Social Media Marketing
- Open Houses
- FSBO Listings
- Paid Digital Ads
Generate Real Estate Leads With These 7 Lead Sources
If you don’t have the capacity to utilize all of these lead sources, pick 2-4 to start and focus your attention there.
As your business grows, your capacity may expand and you can tap into additional lead sources.
Traditional marketing is still alive! While sometimes the ROI is hard to identify, with mailers you are able to directly target a specific address and a majority of the time are right in front of the homeowner.
Direct mail showed a response rate of 3.7 percent for house lists, while all digital channels combined yielded a response rate of only 0.62 percent. (Direct Marketing Association)
While the response rate seems much higher, so is the cost! Direct mailers vary in price – typically between 30 cents to $10 per person – depending on the size, quantity, cost of design, mailing lists, printing, and distribution.
If you are looking to start direct mail, inquire within your brokerage to see what they offer or they have any partnerships already set up.
If you are savvy, you can design your own mailers and then get them printed through a third-party.
Referrals. Everyone talks about them, but how do you start getting them so you can generate real estate leads? Who are your best referral sources? A lot of time people think that referrals are just from family members or a buyer/seller you may have had, but there are so many other referral sources out there.
- Buyer or seller that you have represented
- Family or friend
- Team member or broker
- Partner agents in other states
- Mortgage Lenders / Loan Officers
- Home Maintenance Professionals (plumber, HVAC, contractors, interior designers, etc)
- Local Businesses
A super common way to generate leads is to go after expired listings. But they aren’t as easy to get as people make it seem.
When expired listings pop up on the MLS, real estate agents become vultures, so it is not like you are the only one going after the listing. You’ll have one shot (if at all) to get in front of the homeowner to pitch yourself.
Be mindful, take action, and give it your all.
One of the most popular and most affordable ways to generate real estate leads is through social media. Did you know that social media lead conversion rates are 13% higher than the average lead conversion rate (Strut.co).
It is the easiest way to start branding yourself and to get your services out there. A majority of real estate agents either don’t understand social media, don’t have to time come up with content, or aren’t even sure where to start. Change Media Co. is the perfect solution for real estate professionals who want to use social media and digital marketing to grow their business, but aren’t sure how. For less than $1/day, marketing content has never been more accessible.
Open houses aren’t for everyone, but you know who they are for? Prospective home buyers and new agents looking to generate leads that don’t cost money, but instead cost a little time.
If you are new to a team or on a team and need some help, ask to host open houses for your team leads or broker. Chances are, they will let you.
If you have your own listings to host open houses for, do it.
Gather information from walk-ins when they come in and see where they are at in the buying process. If they are synced with an agent yet or haven’t even gotten pre-approved, step in.
For sale by owners are a great way to generate real estate leads and convert them. Similar to an expired listing, there are a lot of other agents going after FSBO leads, but here’s the catch – most FSBO listings don’t want to deal with real estate agents. That’s why they listed on their own.
So figure out how you can provide value to them over the other agents and why should they give up a real estate commission by signing a listing agreement with you.
Paid Digital Ads
Paid ads are a popular way to start generating leads, but it does come with a higher price than some of the above options.
There are a couple of options – Google Ads, Facebook Ads, Instagram Ads.
If you’re new to paid digital ads, Google was the first player in the digital ad space. When potential customers do a search on Google for the best real estate professional in your area, are you showing up on the first page?
Whether you are or aren’t, you can set up an ad on Google and only pay for results – whether that is a link click to your website or a phone call to your business, you pay for results.
Once you start utilizing social media, think about setting up Facebook Ads. It’s recommended to spend at least $250+ per month to generate qualified leads via Facebook. Depending on your budget, this is a good option to zone in on your target audience and reach them on social media.
Because Instagram is owned by Facebook, creating an ad pushes your advertisement to Facebook and Instagram.
Generating Real Estate Leads Takes Time
Generating leads isn’t necessarily a hard task to do, but it can be time consuming. Remember when I mentioned how important prospecting is at the beginning of this article, now you know why. You can never have too many avenues available to attract new leads.
Now what are you waiting for? Get out there and start prospecting so the leads start rolling in.