National Lead Generation Statistics for Real Estate Professionals (2024 Survey)

Open houses and networking are good ways to obtain new real estate leads for several reasons:

1. Direct interaction. Open houses allow real estate agents to directly interact with potential buyers and sellers.

This personal connection can build trust and rapport, making it more likely for attendees to consider the agent for their real estate needs.

2. Showcasing expertise. Hosting an open house showcases the agent’s knowledge about the property and the local market.

This expertise can impress attendees and position the agent as a trusted source of information.

3. Referrals. Networking events and open houses often attract other industry professionals, such as mortgage brokers, real estate appraisers, and contractors.

Building relationships with these individuals can lead to referrals, expanding the agent’s network and potential client base.

4. Word of mouth. Satisfied attendees of open houses or networking events may recommend the agent to friends, family, or colleagues who are in the market for real estate services.

5. Market insights. Through conversations at open houses and networking events, agents can gain valuable insights into the current market trends and the specific needs of potential clients.

6. Local presence. Regularly hosting open houses and attending networking events in a specific area can help agents establish a strong local presence, making them a go-to choice for real estate services in that community.

7. Building relationships. Real estate transactions often involve significant financial decisions.

Building relationships through open houses and networking can help agents establish trust and credibility, which are crucial for successful deals.

In summary, open houses and networking provide opportunities for real estate agents to connect with potential clients, showcase their expertise, and build relationships within the industry, ultimately leading to new real estate leads and business opportunities.

— Charles Gilbert, Sellstate Heartland Realty, Brokerage Owner

Networking with business owners for real estate referrals is like planting seeds in a garden of opportunity.

Each connection you nurture not only blossoms into a fruitful partnership but also cultivates a network of trust that yields a bountiful harvest of leads.

In the world of real estate, collaboration with fellow entrepreneurs is the key realtor skill that unlocks the door to endless possibilities.

— Chris Dowell, Berkshire Hathaway HomeServices Kansas City Realty, Realtor

I enjoy making the video content that I do. I try to create informative videos and post them via social media because I know when I was looking to buy a house, I didn’t know anything.

Referrals are so vital in this industry, so I have been working for a few months on building my network within Keller Williams software.

— Preston Dean, Keller Williams Fort Worth, Realtor

When I meet someone personally, or they are referred to me by a former client or mutual friend, it’s far more likely that we’ll develop a connection that leads to a sale.

Networking is by far the most reliable “lead source” I’ve found.

— Casey Stewart, Coldwell Banker Realty, Realtor

The people in your network are the people that already know and trust you.

These contacts are most likely going to use you again or refer you to someone and create an opportunity that will lead to a transaction that will close.

— Jeff House, Keller Williams/The NEXT MOVE Network, Realtor/Director of Coaching

My sphere is my network; it’s been since day one when I started off in the real estate industry in 2007 when I got my real estate license.

I started off with my wedding list and ever since then, I typically like to stay in touch and follow up with people that I know and through those people I’ve met people and then I just stay connected.

— Lory Kim, RE/MAX Connection, Franchise Owner

I get to meet the folks in person and show my value — and overcome the objections in person where there’s less objections and no competitors around.

— Lonnie Cowan, Keller Williams Realty Gulf Coast, Realtor

Since I’m new to the business, this has been the best way for me to build a client base. I’ve had multiple leads come through and closed on one a week ago.

— Steven Hamm, RE/MAX Quality Realty, Realtor

Getting a personal referral from someone you network with is always the best. They have already told the buyer/seller that they can trust you and what an amazing job you will do for them.

— Nadine Locascio, Keller Williams Real Estate, Realtor

I prefer networking for referrals because it is more personal and strengthens relationships.

— John Chludzinski, Winding River Realty, Broker/Owner

I can control the message and geographic area. Then, I can retarget everyone for minimal cost.

— John Demitri, The Demitri Team at Keller Williams, CEO

If my sphere of influence isn’t supporting my realtor goals for the year, I supplement it with open homes.

— Valerie Crowell, Keller Williams, Broker Associate

They generate the best ROI.

— Mark Slade, Keller Williams Mid-Town Direct-Maplewood, NJ, Rainmaker/CEO for The Mark Slade Homes Team

Obtaining good real estate leads from platforms like Craigslist, social media, and cold calling can be challenging for several reasons:

1. Competition. These platforms are saturated with real estate listings and agents, making it difficult to stand out and capture the attention of potential leads.

Competition can be fierce, particularly in the Kansas City real estate markets.

2. Trust and credibility. Building trust and credibility with potential leads can be challenging through online platforms.

Many people are wary of scams and unverified information on websites like Craigslist, and they may be skeptical of cold calls from unfamiliar numbers or agents on social media.

3. Privacy concerns. Cold calling and some forms of social media outreach can intrude on people’s privacy, leading to a negative perception of the agent or agency.

In some cases, individuals may be hesitant to share personal information with strangers online or over the phone.

4. Filtering and screening. Many real estate leads generated through these methods may not be well-qualified or serious about making a real estate transaction.

Agents often have to spend time filtering out unqualified or uninterested leads, which can be time-consuming.

5. Lack of targeting. Craigslist, social media, and cold calling typically cast a wide net, reaching both potential buyers and sellers who may not be actively looking for real estate services.

This lack of targeting can result in a lower conversion rate for leads.

6. Adapting to algorithms. Social media platforms often use algorithms to determine what content users see, which can make it challenging for agents to ensure their posts and advertisements reach the right audience.

7. Ad costs. While social media advertising can be effective, it often requires a budget for paid ads to reach a broader audience. This can be costly, especially for agents with limited resources.

8. Changing regulations. Social media platforms and regulations regarding cold calling can change, affecting the effectiveness and compliance of these methods. Agents need to stay updated on the latest rules and best practices.

In summary, while Craigslist, social media, and cold calling can be used for lead generation, they come with various challenges, including fierce competition, trust issues, privacy concerns, and the need for effective targeting.

Agents often need to employ a mix of strategies and adapt to evolving trends to obtain high-quality real estate leads from these sources.

— Charles Gilbert, Sellstate Heartland Realty, Brokerage Owner

Social media marketing takes consistency that I don’t always have time for, and I prefer not to pay someone else to create content for my social media because I think authenticity is important.

Open houses are a lot of fun and you can definitely meet people, but they often attract people who aren’t necessarily looking for a home right now (such as curious neighbors).

Paid leads have worked for me in the past, but the overall success rate is low and the financial investment can be rather high.

— Casey Stewart, Coldwell Banker Realty, Realtor

There are a ton of people on the DNC (Do Not Call) list. As a realtor I cannot call someone on that list or it can have major implications on my license.

When I begin to cold call someone, I first have to check that they are not registered on the DNC list, and if they are, I just move on.

It’s difficult to find a number, let alone find a number not on the DNC list.

— Preston Dean, Keller Williams Fort Worth, Realtor

Social media, such as Facebook, are great for planting seeds for potential future business. Unfortunately, a lot of people I’m connected with don’t live in my area.

I can provide a referral service, but that’s about it.

I’ve hosted a couple of open houses which generated only one potential lead.

— Steven Hamm, RE/MAX Quality Realty, Realtor

Zillow does work very well; however, these buyers/sellers don’t know you and you have to gain their trust and make them comfortable over the phone.

Many times they can be talking to multiple agents and they may not share that with you.

— Nadine Locascio, Keller Williams Real Estate, Realtor

Some of these methods worked reasonably well, especially cold calling a long time ago which was great.

But now consumers are more transactional, and the relationship between the agent and consumer has weakened to something more temporary and even fleeting.

— John Chludzinski, Winding River Realty, Broker/Owner

Building trust and credibility is harder with other lead generation methods.

— Chris Dowell, Berkshire Hathaway HomeServices Kansas City Realty, Realtor

Those methods still work but are more time-consuming.

— Monica Dunn, Cornerstone Premier Realty, Realtor

You are negotiating with a motivated seller who came to you for help with their problem.

I don’t like sending unsolicited wholesale real estate direct mail, cold calls, or texts, and generally when you do get a lead, it usually doesn’t go the way you want.

I like talking to other real estate investors and building relationships with them. When a lead comes in to one of them and it doesn’t fit what they are looking for, maybe they will pass it on to me.

I have purchased several properties from other investors by sharing what I’m looking for in a property. I also pass on properties to other investors when they don’t fit what I’m looking for.

— Marty Morrison, Property Bridge Solutions, Owner

This is a great way to generate great inbound leads. With Google, the sellers are actively coming to your business without any outreach. These are often times when the seller is the most ready to sell.

This lead generation method has generated us the most motivated sellers, at the best price, and the most consistently.

We have sellers reaching out to us as opposed to the other way around which helps strengthen our negotiating position.

— Eli Goodman, Illinois Real Estate Buyers, President

When it comes to lead generation in the real estate industry, I’ve found that networking remains an invaluable strategy.

Networking not only allows you to connect with potential clients but also establishes a foundation of trust.

People are more likely to follow through and engage with your services when they have a personal connection or recommendation from someone they trust.

— Loren Howard, Prime Plus Mortgages, Founder

Driving for dollars is a tedious process that most investors won’t take the time to do, so there is less competition when mailing that list.

I prefer direct mail because it is 100% legal as opposed to cold calling, RVMs, and/or SMS.

— Braden L. Smith, REvitalize Property Solutions LLC, Owner/Broker

Success rate is more. And we can get better pricing.

— Sam Chintalapati, Gava Syndications LLC, Vice President

Lead flow fluctuated a lot. Some months we would have good lead flow and some would be dead.

Additionally, we would get a lot of tire kickers and sellers just looking for offers with no intent on selling.

— Eli Goodman, Illinois Real Estate Buyers, President

It took so much time to generate a lead. My time is so valuable, and I don’t want to invest my time on a low success rate method.

— Sam Chintalapati, Gava Syndications LLC, Vice President

I believe there were too many other investors cold calling. Facebook Ads, and Google Ads were expensive and did not produce good results when I did them, which was some time ago.

— Braden L. Smith, REvitalize Property Solutions LLC, Owner/Broker