Consistently finding and connecting with potential clients is crucial for growing a real estate sales business. However, generating and converting leads into clients can be confusing and overwhelming. To help you make informed decisions, I’ve gathered 15 of the most relevant real estate lead generation statistics, explaining their significance for you as a real estate professional.
General Real Estate Lead Generation Statistics
All real estate agents and brokers should include lead generation strategies in their business plans. Educating yourself on general real estate statistics will help you formulate your strategy and guarantee that you’re making decisions based on success rates and targeting the correct audience.
1. 46% of agents spend $0 to $250 monthly on lead generation
Within the last twelve months, 25% of surveyed Realtors had spent less than $50 per month on real estate lead generation. In addition, 21% of agents reported spending between $50 and $250 per month. This data shows that most real estate agents spend between $0 and $250 per month on lead generation efforts.
Key Takeaways:
On average, real estate agents spend a modest amount of money on lead generation. This suggests that the average real estate lead conversion rate from free or lost-cost strategies is significant enough to grow agents’ businesses.
- There is a wide variety of lead generation tools and strategies available, and it’s possible to generate leads for under $50 per month through free methods like referrals and social media marketing.
- Paid lead gen tools are also valuable and can boost your return on investment (ROI) by increasing the lead quality, automating marketing, and sometimes guaranteeing a certain amount of monthly leads.
Choosing the right real estate lead source is an incredibly important decision. Make sure you consider the best places to buy real estate leads, like Market Leader. Market Leader is one of the few sources that provides exclusive leads as well as a variety of lead generation solutions, such as customizable websites, CRM (customer relationship management) software, automation, and a mobile app. With the agent platform, you can generate exclusive leads and have a marketing funnel up and running easily and quickly.
2. 43% of home buyers used an agent recommended to them
According to lead generation statistics, of all the ways that potential buyers can find a real estate agent, 43% used an agent who was personally recommended to them by a friend, neighbor, or family member. When buyers are ready to start a real estate transaction, they prefer to get a recommendation from someone they trust.
Key Takeaways:
- Real estate relies heavily on relationships, reputation, and networking in an increasingly digital market.
- Establish a clear plan to consistently connect with your previous clients and ask for referrals.
- Consider sending a gift to your clients to encourage more referrals.
3. 65% of sellers found their agent through referrals or previous transactions
Generating real estate seller leads differs from buyer leads because sellers have already participated in at least one real estate transaction. Therefore, many home sellers have worked with an agent in the past, making them more likely to become repeat clients or sources of referrals.
This is likely why 65% of sellers find their agent from a previous transaction or a referral, while buyers often don’t have previous experience with an agent. In addition, 46% of home sellers worked with the same agent who helped them purchase their house.
Key Takeaways:
- Real estate lead conversion rates for past clients are significantly higher than the industry average.
- Each client is a valuable source of future lead generation and sales.
- Buyer clients may provide real estate referrals, and they are more likely to work with you on multiple transactions.
- The most powerful method of generating home seller leads is through personal referrals and sphere of influence (SOI) marketing.
4. 71% of buyers & 81% of sellers only contacted one real estate agent
It’s recommended for home buyers and homeowners to meet with multiple real estate agents before starting their transaction, but real estate lead generation statistics show that this is not typically what happens. In reality, 71% of buyers interviewed only one agent, and 81% of sellers worked with the first agent they contacted.
With such a large majority of buyers and sellers choosing the first agent they meet, it shows that your first impression—regardless of whether it’s online or in-person—is key to closing a deal.
Key Takeaways:
- Since most homebuyers and sellers don’t interview more than one agent, you have the highest chance of converting a potential client if you meet them before other agents.
- Evaluate the kind of impression your online and in-person presence makes on potential leads, and adjust your marketing strategies, so you can be the first (and last) agent buyers and sellers reach out to.
5. 87% of homebuyers & 87% of sellers would recommend their real estate agent
Even though buying a house is a complicated process that often presents many unknown challenges, 87% of homebuyers said that they would happily work with their real estate agent again or recommend them to others. In addition, a similar statistic shows that 87% of home sellers would also be happy to recommend their agents to others.
Key Takeaways:
- The majority of Realtors are serving their clients well but are missing out on valuable opportunities for repeat clients.
- Agents don’t realize how easily their previous clients can lead to new business.
- It’s difficult to manage follow-ups manually, so investing in a real estate CRM is essential.
The best real estate CRMs keep your contacts organized with pipelines and notes and allow you to schedule and automate follow-up messages at specific times. LionDesk, one of our top CRM picks, connects your contacts to a transaction management tool to streamline communication with clients before, during, and after their transactions. Try LionDesk for free for 14 days.
Use of Technology in Lead Generation Strategies
With so many possible lead-generation strategies, it can be tempting for agents to focus only on the most accessible or comfortable strategy. However, knowing the industry’s most effective strategies can help agents seamlessly progress from lead generation to conversion.
6. 54% of Realtors say social media is the top tech tool for generating leads
Lead generation statistics say that in a list of the top real estate marketing and lead generation tools, 54% of Realtors reported that social media was the best source of high-quality leads. Other lead sources like email marketing, digital ads, and your brokerage’s website are also effective but have significantly lower real estate conversion rates.
Key Takeaways:
- Social media is no longer just one of many options for generating leads—it is now a necessary marketing element for every agent.
- Social media marketing is effective for targeting prospective clients, building rapport, and growing your real estate brand.
7. 92% of Realtors use Facebook to generate leads
A whopping 92% of Realtors use Facebook to generate leads, making it the most-used social platform. Realtors use it to market their businesses and connect with clients. Other most-used social media platforms were Instagram (68%) and LinkedIn (52%).
It’s wise to be active on Facebook because that’s where most clients are, but you may also consider developing an audience with less real estate competition. For example, only 12% of Realtors are on TikTok, but a number of real estate agents and brokers have large followings on this platform. If your target demographic uses TikTok and it fits your brand and personality, you could do well on this less popular platform.
Key Takeaways:
- Facebook is widely used by potential real estate clients across the US and may be an ideal place for agents to begin marketing on social media.
- Create a variety of real estate Facebook posts and present clear avenues to connect with local buyers.
- TikTok offers a less competitive landscape for real estate compared with Facebook.
- Consider using TikTok if your target audience is on the platform and it suits your brand.
- Repurpose content to fit other platforms to multiply your reach.
8. Tuesday is the best day to send an email for the highest performance
With a projected number of 4.73 billion email users in 2026, it’s no question that email is the most effective channel for nurturing leads. Its ability to deliver personalized content, automate follow-ups, and maintain consistent communication makes email an indispensable lead nurturing tool. According to HubSpot, emails sent on Tuesday receive some of the highest open and click-through rates, while Sunday is the worst.
Key Takeaways:
- Emails are the most effective and reliable way to connect with and nurture your leads.
- To maximize engagement with your leads, send emails that provide them with valuable content at least once a week.
- In an increasingly digital industry, it’s necessary for realtors to engage with their leads on a personalized level. This may be why email stands out as the most effective way for companies to connect and elicit responses from their leads.
9. Zillow is the #1 most visited real estate website
Zillow has been the most popular real estate website for many years. Exact estimates of Zillow’s traffic vary, but in June 2024, it received an average of 310 million visits. Other estimations say that Zillow receives an average of 365 million monthly visits. Another top-ranked real estate platform is Trulia, which is owned by Zillow.
Key Takeaways:
- When compared with every other marketing tool, online real estate platforms generate the highest amount of traffic.
- Successful agents should consider how they can leverage the massive popularity of platforms like Zillow and Trulia to grow their businesses more efficiently. Read our full review of Zillow Premier Agent to learn more.
Since Zillow is a pillar of the modern real estate world as well as a lead gen tool for agents, consider becoming a Premier Agent. It leverages existing Zillow traffic into quality leads and is a powerful way to grow your business. In addition, by being a Premier Agent, you can post your listings on Zillow or be featured on other listings to draw in potential buyer leads.
Real Estate Lead Conversion Statistics
Generating real estate leads is the first part of gaining new leads, but they need to be converted into clients to grow your business. Every lead generation strategy has different levels of effectiveness, so you must continue tracking and evaluating your real estate prospecting conversion rates. Read on to learn more about the average conversion rate in real estate.
10. The average conversion rate in real estate is 2.4%
Real estate lead conversion statistics can range wildly, but Ruler Analytics found that the average conversion rate in the real estate industry is 2.4%. Real estate transactions are one of the biggest financial decisions and processes that your clients make, so the process of building trust and forming relationships is particularly important and time-consuming.
Key Takeaways:
- Larger transactions like real estate purchases are expected to have a longer nurturing process.
- Although the average conversion rates in the real estate industry appear low, conversion rates in all industries are generally between 1.8% and 4.6%.
- Conversion rates can range massively, so test different methods and strategies to find what is most effective for your audience.
11. Real estate internet lead conversion rates range from 1% to 3.5%
An in-depth marketing study by Ruler Analytics shows the average real estate internet lead conversion rates based on a variety of common marketing strategies. These include the following:
- Email: 3.5%
- Referrals: 2.7%
- Organic search: 2.2%
- Paid search: 2%
- Call: 1.7%
- Form: 0.6%
These statistics can help form your strategies for generating, nurturing, and converting leads. However, keep in mind that real estate lead conversion rates can vary slightly depending on different factors like the source, number of agents surveyed, and the time of year. For example, a different study shows that the average conversion rate for online real estate leads through paid search in 2023 was 2.88%.
Key Takeaways:
- Keep track of your lead conversion rates to help you determine if your strategies are effective or in need of improvement.
- Version rates will depend on your effort, audience, and individual marketing strategies.
Measuring your average real estate lead conversion rates against industry standards can help you make the best marketing decisions. If you don’t currently keep track of your contacts and conversions, make sure you use a marketing tool like HubSpot that can help you generate accurate conversion rates. HubSpot automatically generates visual charts and reports to help you understand your progress on multiple communication channels.
12. 61.7% of buyers that search online convert over the phone
Within each lead generation strategy, there are additional tools and strategies that will impact your results. Organic search and paid ads drive 57% of all website visitors, but only a small percentage of visitors translate into leads or clients.
In fact, an interesting study found that 61.7% of home buyers who searched online ended up becoming clients over the phone—quite an increase from the average conversion rate of organic search alone (3.2%). It’s clear that a personal, one-on-one connection in combination with search engine optimization (SEO) is much more effective than either method individually.
Key Takeaways:
- A complete marketing strategy will be significantly more effective than an individual lead generation strategy or tool on its own.
- When you combine multiple strategies like organic search and one-on-one phone calls, you can multiply your conversion rates.
Return on Investment (ROI) for Lead Generation
As you invest in real estate lead generation, it’s important to evaluate your expenses and profits to maintain and increase profitability as you grow. However, you will find that calculating exact ROI is difficult since there are an unlimited number of factors that affect an agent’s ROI. Although there is limited data about ROI, here are a few of the most important lead generation and conversion statistics to help you improve profits.
13. The average cost per lead from paid search is $66.02
How much do real estate leads cost, you ask? The average cost per lead (CPL) for paid search in real estate is $66.02. Calculating your average cost per lead in real estate is important because it breaks down your total costs and income to show you exactly how much you are paying for each lead. Having this calculation can help you minimize your spending and maximize your income.
Key Takeaways:
- Investing in lead generation can involve time, effort, and money.
- Knowing your CPL and learning how to minimize it will help you get the maximum number of leads, clients, and income.
14. Referred clients have a higher lifetime value by 25%
Every real estate client has the potential to become a repeat client and provide future referrals for the agent. However, when a new client is referred by someone they trust, they increase your profit margin by 25%. You save money on advertising and marketing, and you increase the chances of having a client who will continue to refer you without additional ad spend.
Key Takeaways:
- Real estate referrals are the most likely to become loyal, long-term customers.
- Referrals from a trusted friend, family member, or colleague require less effort to convert into clients.
- Referred leads and clients are more valuable over time than leads from other sources.
15. New clients cost 6-7 times more than existing clients
Even though a few real estate lead conversion statistics above show that referrals don’t always drive the highest conversion rates, it costs six to seven times more to get new clients than it costs to retain existing ones. Since referred clients are typically more profitable and since a large majority of real estate transactions come from personal connections, it’s clear that the fastest way to maximize your ROI is through referrals.
Key Takeaways:
- Successful real estate agents often generate a majority of their income from referrals alone.
- Real estate referrals are one of the most important pieces of a successful business because they naturally compound to generate more leads and more profit.
Frequently Asked Questions (FAQs)
What is a lead in real estate?
A lead is a potential client interested in buying, selling, or renting a property. You’ll need to nurture these leads and convert them into clients to close a deal. Some agents generate leads without paying anything, while others purchase leads.
What percentage of leads turn into sales in real estate?
Approximately 0.4% to 2.4% of real estate leads convert into sales. This means that for every 1,000 leads you pay for or reach out to, only four to 24 will result in closed deals. This real estate conversion rate is just an estimate and can vary based on the quality of leads, the market conditions in your city, and your follow-up strategies.
Where do most realtors get their leads?
Realtors get their leads from various sources, such as referrals, personal connections, social media, email, direct mail campaigns, open houses, and community events. Additionally, many agents invest in paid lead generation services to attract a wider audience.
How much does the average realtor spend on leads?
According to NAR’s real estate lead generation statistics, the average realtor spends between $0 and $250 monthly on lead generation. This amount can vary depending on an agent’s business goals, market area, budget, and the effectiveness of their lead gen strategies. If you think your strategies aren’t working or would like more lead sources, getting paid leads is fine. Agents targeting specific groups, such as first-time homebuyers, adjust their spending to include specialized lead gen efforts aimed at these potential clients.
Bringing It All Together
Generating leads for your real estate business is essential to earning money and growing your business. There are various ways to successfully generate, nurture, and convert leads, like social media, organic search, referrals, and networking. While there is no cut-and-dry method to grow your business or know precisely what will work best for your audience, you should use real estate charts and generational statistics to inform your decisions and help you quickly find success.
Sources
1, 6, 7. NAR 2023 Technology Survey
2, 3, 4, 5. NAR 2023 Home Buyers & Sellers Survey
5. NAR 2024 Home Buyers and Sellers Generational Trends Report
9. TipRanks, Similarweb
10, 11, 13. Ruler Analytics, WordStream
12. Ruler Analytics Conversion Benchmark Report for Real Estate
14. Annex Cloud
15. Zippia
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