Here are a few tips for managing a productive lead funnel.

 

• Use a customer relationship manager (CRM) to keep track of your contacts. Measure which marketing activities are bringing in new prospects. Accurate tracking and reporting will allow you to focus time, efforts, and budget on the marketing tactics with best return on investment. 

 

• Stay in touch over time. You can’t see it, but your prospect is likely having discussions with several other agents, working on house projects, looking at new homes, and talking about the decision with friends and family. We’ll discuss specific nurturing tactics later, but the top performing real estate agents often use a mixture of personal and automated touch points to remain in front of top prospects via email, phone calls, texts, and more.

 

• Track your conversion ratio. You need to understand how many leads eventually turn into clients, otherwise you won’t know how likely you are to earn new listings based on how many prospects you’re currently nurturing. A common ratio is for 100 leads to result in 3-4 listings. This means that the industry standard conversion rate is about 3-4%. With some simple math you can work backward from your desired number of idea listings to the total number of leads you should have at any given time.

 

The timeline for a buyer’s journey through this funnel can vary greatly. A highly incentivized seller could agree to work with you after just one or two meetings, while another prospect might need several months to make a decision.  

 

Regardless of the differences between seller’s timelines, as a real estate agent you need to be continuously filling the top of your funnel with new people and fresh contact information. 

Before we dive into a complete list of real estate lead generation ideas, let’s quickly review the buying time frame for most residential real estate transactions. 

 

If you know when to conduct outreach to someone based on their ideal listing window, then your success will go up. 

 

Way up.

 

 

How to Strike When the Iron is Hot

What if you could market only to people who are highly likely to list their home? 

 

How would it impact your business if you could predict the exact right time to follow up with a real estate listing lead? 

 

The full answer to both of those questions requires a detour into predictive analytics; but we’ll cover that topic in detail later. For now, you can manually use some of the qualifying questions below to help determine if you’re generating and nurturing the right leads.

 

There are two primary windows of opportunity for real estate agents. The first is when someone decides to buy or sell but has not yet chosen an agent.

 

The second window of opportunity occurs after a specific length of time has passed since someone purchased a home and research shows that they are likely to be interested in moving again. Indicators that a home owner is ready to sell soon include the following:

 

• They’ve requested a formal (or informal) home value assessment to see the market price.

 

• The current owners previously tried FSBO and took the house off the market (or it has been listed FSBO for months with little activity).

 

• Nearby homes have recently sold above the asking price and demand for homes in their neighborhood remains high (with low inventory). 

 

• The seller listing has expired without an offer being accepted.

 

• You’ve learned from a referral source that a homeowner has purchased another home already, or started renovations and cleanup for their property in anticipation of listing soon.

 

Getting some of the information described above can be the result of hard work, smart questions, and trusted relationships built over time - or it can be dumb luck. 

 

To remove luck from the equation as much as possible, we recommend adding consistent lead generation activities to your routine prospecting. Picking and performing even of few of the following tactics will increase your chances of finding motivated sellers that are ready to move. 

 

Ready to get more listings?

 

 

Free Real Estate Lead Generation Ideas

There’s absolutely nothing wrong with being on a budget. To help agents that are looking for low or no-cost marketing approaches that can be started today, we’ve compiled a list of the top free real estate lead generation ideas that can still produce excellent results if executed with a smart plan and consistent approach.

 

Direct Outreach

• Cold calling. Good old-fashioned dialing is still a great way to make genuine connections, and good agents can convert 1-2% of their calls into genuine leads. The right script and a friendly demeanor can actually make cold calling a pleasant experience. If you’re at a total loss for how to get started, this guide on real estate cold calling from Pipedrive has tons of great recommendations and pre-written scripts to help you get started.  

 

• Cold knocking. Face-to-face selling is perhaps the most daunting of all sales methods. Door-to-door sales makes most people nervous, but it gets easier over time and it’s a great way to build genuine rapport with interested prospects. Pick a neighborhood where you know there is a lot of interest and activity. This tactic is particularly effective if you’ve recently helped another seller in the area because homeowners have had time to see your signs (and they probably snooped on Zillow to see the estimated sale price). The Close has collated professional insight and talking scripts if your knees are knocking at the thought of going door-to-door. 

 

• Offer to teach workshops on topics that would be relevant to your ideal listing leads. These free workshops could incur some cost (e.g., printed materials) or you could distribute a digital copy of the presentation for free. As a local small business or sole proprietor, you can likely use a classroom or conference room at your local chamber of commerce, library, or co-working space. Examples of relevant topics could include:

 

o Secrets to Getting the Highest Price for Your Home.

o 7 Essential Steps to Prepare Your Home for Listing.

o Expert Tips for First Time Home Buying and Selling.

o How to Buy Your Dream Home and Sell at the Same Time.   

 

Pros: 

• Quickly vet potential prospects and walk away with a firm “no” or contact info for a warm lead. 

• Face-to-face time helps you remain top of mind for the prospect. 

• Direct outreach requires little or no budget, making it attractive to new agents. 

 

Cons: 

• Cold calling and door-to-door sales is not scalable. You’re limited by how many numbers you can dial and homes you can visit. 

• Cold outreach does not “passively” produce leads in the same way that a website or social media presence does. 

• You probably don’t know who to target.  

 

Learn more: 

 

Check out these resources from The Close and HubSpot to learn more about effective real estate cold calling and door-to-door sales tactics. 

 

Thoughtfully Nurture Your Leads to Win More Listings

How do you helpfully and thoughtfully remain in touch with a prospect after your first meeting? Any of the recommendations below will set you apart from busybody agents that move on if they don’t sense an immediate opportunity. 

 

• Handwritten notes. If you have 10-20 leads that are most likely to work with you (“hot,” in sales jargon), try putting a handwritten letter in the mail wishing your prospect well and referencing personal highlights from your initial meeting.

  

• Email. Most agents will automate a regular email that sends listings they think will be of interest to the seller. This does work well, and it’s a good idea. However, people also like human touch points. They like personal outreach from a real email account with specific questions and concerns. Even once monthly direct (not mass) outreach will go a long way toward making you the preferred agent once they decide to list, as these stats on email marketing show. 

 

• In-person visits. Ask your top prospects to coffee or if you can stop by and chat. Personalized attention is sorely missed in the modern sales era, and it will help you stand out and earn future referrals. 

 

• Texting has become a preferred method of communication for many agents and clients. A meaningful text after helping your client sell and find their next home is wonderful way to show that you actually care about them and weren’t focused solely on the sale. 

 

Pros: 

• Be memorable to prospects.

• Earn more referrals.

 

Cons:

• Befriending prospects can make it hard for them to say “no thanks” even if they don’t intend to work with you. 

• It’s time consuming, meaning you can only focus on a few leads each day.

 

Learn more: 

 

This article from HomeSnap provides helpful insight into effective nurturing tactics for real estate leads.

 

Collect Testimonials & Promote Word-of-Mouth Referrals

In 2020, 67% of clients chose their realtor based on the recommendation of a friend or family member. This number has increased in recent years, indicating that replacing the advice of a trusted referral source is only getting harder.

 

• Generate word-of-mouth buyer referrals by reaching out to other people in the neighborhood where you have a listing and encouraging them to refer family and friends that they would love to bring to the vicinity. 

 

• Ask for and feature client reviews on your website, social media, and Google My Business page. These types of reviews act as social proof and the also bolster your online legitimacy, which supports local SEO. 

 

Pros:

• Testimonials are more meaningful to prospects than your pitch.

• Word of mouth is the single biggest deciding factor for many clients.

 

Cons:

• It takes time and effort to consistently follow up with clients when asking for referrals and testimonials – though it’s highly worthwhile. 

 

Learn more: 

 

Study up on best practices for collecting and using client testimonials as a free word-of-mouth promotional tool. Tools like Reach150 will make this process much easier.

 

 

Solidify Your Brand & Spread the Word

Brand awareness is critical, but it’s not sufficient to ensure brand preference. Remember that your brand includes both tangible elements (e.g., colors, logos, copy, etc.) and intangible qualities (e.g., value, service, mission). Small adjustments like the ones recommended below cost little or nothing to make:  

 

• Review your messaging to ensure that it communicates your differentiators and value propositions to leads. Most importantly, does it make people trust and prefer your services? A few small brand tweaks could help you connect with more prospects and win more business. 

 

• Build brand awareness through multiple marketing channels. Today, brand awareness means a lot more than cool business cards and a nice logo. You have to establish an online presence. According to a 2019 article from SproutSocial, 44% of home buyers now start their real estate search online. Can you use free business directory listings or social media to increase potential seller touch points?

 

• Market to an underserved niche. If you’re having issues gaining traction as a “generalist,” research how you can develop expertise in a specific type of real estate. Do this by looking at the demographics of a neighborhood or and identifying common characteristics among sellers or the types of properties currently listed. How can you specialize in meeting the needs of specific sellers, properties, regions, financial situations, etc.? Read more from Fit Small Business on the top 10 most lucrative real estate niches.  

 

• Brand your signage and leave behinds. There can a long period of time – often a month or more – during which the buyers and sellers are moving, giving you incredibly valuable advertising in the neighborhood. Adding unique and personal touches to your leave behinds will make you much more recognizable.

 

• Vehicle wraps & stickers. There is an initial cost to purchase decals, magnets, or stickers. However, you don’t need to pay anything for the hundreds or thousands of eyes that might see the ads every way while you’re commuting or the car is parked on a busy street. Featuring your areas of specialty and a phone number or email address is a great way to generate business while you’re on the move. 

 

• Leave your business card at local coffee shops or small businesses and give leads a reason to contact you, like: “call me to chat about your dream house over a free coffee.”

 

Pros:

• Generating brand awareness organically will give you more credibility.

• Focusing on a niche makes your messaging clearer and helps prospects quickly understand what you do.

 

Cons:

• Building brand awareness takes time if you’re not paying for advertising. 

• If you make changes to your brands, you need to reprint and redesign each asset. 

 

Learn more: 

 

Dottie Herman explains the importance of branding for real estate professionals in her full article. 

 

Create Mutually Beneficial Referral Partnerships to Capture Listings

Professional relationships can be reliable long term lead sources. Developing personal connections can be done with essentially no budget if you’re willing to attend networking events or conduct outreach to potential referral partners.

 

Typically, a referral source is someone who has the trust of the seller but does not compete directly with your services. Referral partners often expect that you will also recommend their services, if needed by the client. Common examples of real estate referral sources include:

 

• Personal bankers

• Contractors

• CPAs

• Real estate attorneys

• Interior designers and decorators

 

Pros:

• Good referral sources can be as trusted and effective as client word-of-mouth referrals.

• Once established, these relationships can last well into the future. 

 

Cons:

• Staying in touch with various referral sources requires time.

• You’re not guaranteed that referral sources will consistently (or ever) send business to you.

 

Learn more: 

 

Here are 7 ways to increase your real estate referrals, according to The Close. 

 

 

Host an Open House

Open houses can attract interested sellers from the surrounding community. This is particularly effective if you have a listing in an area that you'd like to cultivate further. 

 

Although these visitors might only be curious at first, they’ll remember meeting you and will take note of how quickly you are able to help their neighbor sell. 

 

Use the open house to distribute branded or value-added resources that demonstrate your knowledge of the local market. 

 

Pros:

• Open houses can require little or no cost to host.

• Increased signage and foot traffic might spark new conversations. 

 

Cons:

• Open houses can attract unqualified buyers or nosey attendees that aren’t serious about next steps. 

 

Learn more: 

 

The Rochester Real Estate blog shares at length about pros, cons, and recommended strategies to consider for using open houses to generate business. 

 

Email Newsletters

Create an email newsletter and share valuable information; even if it’s only once a month. The tools required to draft and send mass emails are often free. Here are a few simple examples of topics you could cover in your newsletter to help prospects on their real estate journey:

 

• Client testimonials.

• Local real estate data.

• Listings that you recently sold.

• Tips on how to list a home.

 

Pros:

• Prospects will save and recall good emails, helping you stay at the forefront of their mind.

• You can encourage prospect to join your list directly from your website or social media, improving your lead generation funnel.

 

Cons:

• Designing and copywriting emails could feel out of your wheelhouse. 

• Using email campaign software requires a bit of technical knowledge and practice.

 

Learn more: 

 

Email services provider Campaign Monitor has written a comprehensive guide to email marketing for realtors to help jumpstart your email newsletter campaigns. 

Social Media

Social media provides realtors with access to an enormous market of potential leads. Actively managing your accounts does require an investment of time, but it’s still one of the best ways to earn brand recognition and generate new prospects. 

 

Even without paying for advertising, most social media platforms will help you reach sellers if you’re willing to spend time consistently connecting and posting helpful content.

 

 

LinkedIn is primarily a professional networking platform. If you don’t currently have a LinkedIn, or if it’s been a few years since you last checked it, here are a few advantages of maintaining an active profile: 

 

• Easily network and connect with potential referral partners. 

• Target higher earning buyers or sellers with direct messages.

• Build your brand by getting marketing materials directly in front of potential clients.

 

Any of these tactics can be done for free. This article on 9 ways that realtors can use LinkedIn to grow their business might be the inspiration that you need to start today. 

 

 

Direct networking and relationship building on social media is incredibly powerful. Not only does social media provide free access to an enormous community of leads, it often results in higher quality prospects when compared to other online sources. 

Focus on these simple tactics if you want to improve lead generation through social media:

 

• Continually grow your network through outbound connection requests. Think of this like a “data cost,” though it’s not going to be as targeted as other methods of purchasing lists.

 

• Create closed groups on social media to provide valuable information to members.

 

• Consistently post branded content that is relevant to your ideal clients, even if you’re not technically savvy or experienced with design. Websites like Fiverr and Upwork can help you find low-cost freelance support, if needed.

 

• Periodically conduct research on competitors to evaluate what methods might be working for them. 

Pros: 

• You can quickly reach thousands of people with good content or interesting listings.

• Respond immediately to and speak directly with clients who contact you through social media platforms.

 

Cons: 

• Organic postings require you to create attractive media assets like video, pictures, and infographics to stand out. 

• Social media platforms are also crowded with competitors, some of whom have spent years perfecting their brand online. 

 

Learn more: 

 

SmartZip has written a full article on how realtors can use social media as an integral part of their marketing strategy.  

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Image Credit: Marketing Evolution 

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How Does Predictive Analytics Compare to Other Types of Lead Generation?

Lead Generation Tactic	Multi-Channel	Audience Targeting	Listing Intent Known
Traditional advertising	X
Digital advertising	X	X
SmartZip predictive analytics	X	X	X

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