Expert Tips For Agents Looking To Buy Leads

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Creating a constant pipeline of fresh prospects in real estate is one of the critical challenges almost every agent is dealing with. While most agents have to find effective methods for generating leads, they are also forced to consider buying leads. This is something that’s often not talked about in real estate school, so we are putting together a guide for agents looking to purchase leads. 

Recently, we had a chance to ask some real estate experts about their experiences with buying leads or generating top-quality ones. Read on to find out what tips they recommend when buying leads to develop top-quality clients. 

 

Never Neglect Due DiligenceJon

According to Jonathan Faccone, the founder of Halo Homebuyers LLC, “When it comes to purchasing leads from a third party, you have to do due diligence on the party to fully understand how they are obtaining their information. We have our own process for building leads lists, so we understand quality control at every step is important to save money on your direct marketing campaigns.”

“Even errors as small as name misspellings can cause you to miss out on potential business opportunities that could cost thousands of dollars. My advice is to order a small number of leads or purchase leads for a few months before you begin investing more heavily,” he says.

“This allows you to cross-reference those leads to public sources to double-check the accuracy of the data they are sending. If the data checks out, then you know you are dealing with a competent third party,” says Faccone.  

 

Do Your HomeworkMartin-Boonzaayer

Martin Boonzaayer, CEO of The Trusted Homebuyers, explains how to review lead sources before choosing the right one.

“Buying leads as a realtor means you haven’t set up your own lead generation techniques, or the market is slow. Choosing the right lead generator to buy leads is the most important consideration. Look at the lead generators website and Google Reviews. Narrow down your results to 3-4 lead providers and try them out. Compare the quality of leads and choose the winner(s).”

 

SheltonWilderHeadshotConsistency Is Key

Shelton Wilder, a luxury realtor and CEO of the Shelton Wilder Group, reveals the outcome of their lead buying efforts and gives her recommendation. 

“If you are a Real Estate agent thinking about buying leads, be prepared to make a large investment, and stay consistent. Buying leads can be expensive, but we have had great success. On one lead generation platform, we have seen a 4x return on our investment. I would highly recommend investing your marketing budget in lead generating platforms.” 

 

Consider Leads Based On MotivationHenry

Henry Angeli III, the owner of Henry Buys Homes LLC, suggests qualifying leads based on motivation before buying them.

“I would recommend only considering buying leads that have multiple motivations and/or qualifying factors that are more likely to result in a transaction closing. On the seller side for example, stacking motivations in a list of leads to buy is important such as people that NEED to sell because they are moving, facing foreclosure, are tax delinquent, need a probate from a dead family member, or have noticeably deferred maintenance,” says Angeli.  

“Having two to three or more of these motivations is going to yield a more motivated seller typically. On the buyer side, I would recommend targeting qualified buyers at certain income levels or higher who have a conveyed a need to buy. Military families would be great examples of buyers to target because you know they have a steady income and are likely to qualify for a VA loan,” he adds.

 

Brett RUnderstand How To Make The Most Of Your Leads

Brett Ringelheim, a real estate agent for Compass, explains how to make the most of the leads you purchase using a strategic and straightforward method.

“One tip that I found to be very helpful when buying leads is that it’s very important to understand the client’s needs before going to view properties. When buying leads, you do not know the person nor understand their needs and wants,” he said.

“So, although they might be reaching out to you about a certain property, it is important to ask the right questions because the property they reach out about might not fit what they actually want. So, whenever you get a new lead, it is crucial to ask questions about what they’re ideally looking for instead of setting up a showing right away for the property they inquired about,” Ringelheim explained.  

“I find many times they reach out about a property but asking them questions and explaining the property to them, they end up no longer wanting to see it but want to see other homes you mention that are a better fit. This also helps you as the agent showing your market knowledge and adding value vs. just scheduling a showing,” says Ringelheim.  

 

Leads Can Get Cold Easilyaaron-norris-4x6

Aaron Norris, VP of Market Insights for PropertyRadar explains how leads can quickly turn cold depending on how you get them.

“Buying lists is problematic because they immediately get stale, there’s typically a time limit on usage, and lists usually don’t offer much beyond the basics like name and address.”

“When real estate pros create hyper-localized lists that back into their personalized expertise, it allows them to spend more time and money focused on connecting with the right leads in the right channels numerous times. Generic FARM lists are out. Pros leveraging inbound and outbound marketing strategies with laser-focused leads are the future,” says Norris.

 

Greg HeadshotBuy Leads Directly

Greg Simpson, CEO of Out Fast Realty & Investments has a different idea about buying leads. 

“You have to be a follow-up machine with buying leads and here’s why: These leads are not just being purchased by you. They’re being purchased by dozens, if not hundreds, of other agents in your market.”

“That’s the problem with buying leads. When they are easily accessible, they are usually the worst kind of lead out there. I fully believe in a different approach to “buying leads.” I believe that you should use that money to buy your own leads via advertising on social media and funneling them to your landing page or website,” says Simpson. 

 

Keep A Balanced Lead StrategyRaj

Raj Dosanjh, the founder of RentRound.com recommends keeping a balanced lead strategy involving a combination of online and offline efforts.  

“In my opinion, as a property management expert, the biggest tip about buying leads is not to let online lead generation divert you from staying in touch with past clients. The key is to have a balanced strategy and to use both traditional and online lead generation techniques.”

“Make sure to nurture the leads you already have and then buy real estate leads. Make a plan to adjust how much time and budget you are devoting to online leads. Allocate the majority of your time, effort, and budget on the existing leads while having a lead generation program running in the background.”

 

SandraMatthews HeadshotMake The Most Of Social Media

Sandra Matthews, a marketing specialist at The Product Analyst, shares her thoughts about generating real estate leads via social media.  

“Promote your business on your social media. Almost everyone is present in the social media world, and digital marketing is a potent tool in building up your profile as a real estate agent. Promoting business through this channel will boost your sales and help you get identified by potential buyers. The advent of digital marketing is there for the sole reason that it’s where the market is, and this isn’t something that we should neglect.” 

 

Consider Your Options CarefullyKaren Condor Headshot

Karen Condor, a real estate expert with an insurance background, advises new agents to consider how they’ll get leads before settling for any brokerage firm.

“Just as you customize your service to your clients, get the leads that custom fit you. Note that the majority of a real estate agent’s business is repeat and referral deals, so buying leads just a small part of the minority segment of your business that also includes direct mail, door knocking, and cold calling.”

According to Condor, “Your budget for buying leads should be put into that perspective. Also factor how much time you’re able to commit to nurturing these leads.”

“And not all real estate leads sources are created equal. For example, if you’re new and on a tight budget, look into InboxRealEstateLeads, which is flexible and has a flat fee. If you’re great at prospecting and have the time to commit to it, then investigate REDX, an affordable option that helps you keep track of who you’ve contacted and when,” he said.