5 Best Sources for FREE Leads as a New Realtor

It’s not enough for new real estate agents to get free leads.

You need to get free leads quickly.

Real estate has a very long sales cycle. You might be working with a lead for 6 months, 12 months, 2 years before you actually get to a closing table. That’s great to get those started now. But in the meantime, a new agent also needs closings and commissions this month, not next year.

Best Real Estate Lead Sources for a New Agent

So which four lead generation strategies should new agents pick for their four pillars?

One way to think about it is to group the different lead generation strategies by speed (how quick they can deliver results), and cost.

I think prospecting methods in the “quick” and “free” quadrant make the best real estate leads for new agents. That allows you to earn quick results while leading with revenue.

The Slow/Free quadrant are the kinds of leads you can build a real estate business on and won’t stop the moment you stop spending money like the paid category. Getting at least one pillar in that real estate marketing category is important.

You can explore adding or switching to paid lead sources once you’re generating some business. Lead with revenue!

Note that just because a lead generation strategy can be “quick” doesn’t mean it doesn’t take a long time, too. Door knocking, for example, will turn up lots of leads who are a year or more out from selling. You still need to have a solid follow-up game to keep these leads engaged and be there when they convert.

Likewise, slower lead sources can come quicker. A homebuyer seminar or a friend’s referral might bring in a quick lead. So don’t neglect these either.

Door knocking

• Door knock for open houses. They don’t have to be your open houses, either! Work with other agents in your office or local builders who will let you host open houses in their inventory. You can knock before the open house with a relevant invitation to extend, rather than looking like a pure salesperson. Be sure to leave behind business cards or fliers on no-answer doors!
• Door knock for Just Solds. You don’t need to have sold anything for this one to work, either! Pick a house that has sold in your target neighborhood and then try the just-sold script. Use that to get their information to deliver a CMA or monthly market report and keep them on your radar.
• Read my Ultimate Guide for Door Knocking

Open houses

• Partner with builder or other agents in your office. They likely have inventory in which you can host open houses on their behalf. A well-marketed open house is a great opportunity to turn up both buyer and seller leads. You can door know the neighborhood before (great for seller leads), and promote your open house on social media.
• Read my Ultimate Guide for Open Houses

FSBOs

• Call and mail FSBO sellers. Contacting FSBOs can be free, and they are easy to find. These are hot homeowners ready to sell who just need some persuasion about your value proposition as a licensed agent. Mailing them a FSBO packet with lots of useful information can be a great way to get their attention if a cold call isn’t working.
• Read my Ultimate Guide for FSBO Leads

Expireds

• Contact Expired and Withdrawn Listings. Sometimes these listings fail to sell their homes during their initial listing agreement for a very fixable reason. If you can diagnose the problem and persuade the owner that you are the right person to fix it, these can be quick listings. Reach out not only via phone calls but with a mailing as well.
• Old Expireds. Old expireds are homeowners who tried and failed to sell months or years ago. They haven’t since sold, but might be interested if they knew their home was worth more in this hot market! There is also less competition from other agents stalking the recent lists of expireds.
• Read my Expired Lead Scripts.

Pay-at-Closing

• Join a brokerage with foreclosure leads. Banks and asset managers partner with just a few brokerages in markets to handle REO sales. Getting into this business from scratch as a new agent is not likely practical. But if you are interested in a counter-cyclical lead generation strategy to add to your four pillars, working for a foreclosure broker might be an educational start.
• Join a brokerage with relocation leads. For new agents, the only practical way to get relocation leads is to join a brokerage that participates in a relocation program. Realogy brokerage brands and Cartus are an example. These brokerages may have different rules on which agents get these leads, and they will all carry hefty splits, but can get your nascent business up and running.
• Work cold leads for referrals. Agents at your brokerage likely have large databases of cold leads they’ve accumulated over years. They may not have followed up well. Clients who fell off or decided not to sell. Whatever the case, an agent might be willing to hand over their list in exchange for a typical referral fee from any leads you convert.
• Read more ideas for pay-at-closing leads.

Don’t Buy Leads

But I need to pay for leads to get started!

Ignoring paid leads like Zillow is hard for a lot of new agents.

I personally got my start buying leads from Market Leader for my local zip code. So why would I advise against this for new agents?

Leads have become more expensive than when I started in 2014. Zillow and Realtor.com have also pivoted mostly toward a referral model, where they work selectively with top agents.

A good ROI on lead spending is 5:1. That means for every dollar you spend, you get five dollars back.

Consider what that means if your average closing is a $6000 check. That means a good result is spending $1000 on every successful lead. That is a chunky customer acquisition cost! Especially given it is an upfront cost you might not get a return on for months or years! Can you afford that?

And new agents are likely going to have major learning curves to conquer regarding consistent follow-up. Without that follow-up, you are likely to have a negative ROI on your spending.

Even if you get closings quickly, you could be losing money on paid leads!

Picking Your Four Pillars

As a new agent, you need deals fast, but don’t have a big database of past clients with an email address and phone number to lean on like experienced agents do.

The temptation as a new agent is to try everything. You will get lots of advice from your broker, other agents, online, etc. Throw open houses. Network with a builder. Host a seminar. Do YouTube live. Call your sphere. Send mailers to your neighborhood. Call FSBOs and expireds. Boost Facebook posts. Write blog posts on your website. Buy Zillow leads. Wear your nametag upside down (supposedly wearing your nametag upside down will make strangers comment on it which will somehow be an opening to talk to them about real estate? Don’t really do that).

My coaching with Verl Workman taught me a really useful concept about lead generating.

Pick just four lead generation strategies.

Ignore the rest as distractions.

And instead of half-assing everything you can whole-ass just a few things.

In this case, you are going to whole-ass four things. If one lead generation strategy fails, you have three others to pick up the slack. This allows enough diversification without spreading yourself thin.

Pick four and get really good at those four things!

Every agent should have a plan on staying top of mind with past clients and referrals. So that is one of your four strategies by default. The others will depend on your strengths.

For your four lead pillars, I suggest:

1. Repeat/Referral/SOI
2. Slow/Free
3. Quick/Free
4. Quick/Free

Here’s my full list of all 27 lead generation strategies as well as the pros and cons of each. Pick 4!

Joining a Team for Leads

If you want paid leads and are worried about a fast start, I might recommend joining a team. A good team leader often has paid leads they will distribute for a split, and also provide you the coaching and accountability a new agents needs.

Especially if you are interested in the paid and slow lead generation strategies, it may be worthwhile to consider joining a team that generates leads in those strategies. A successful real estate blogger in your area, a top Zillow premier agent, or the local “real estate mayor” who throws the best client appreciation events.

Joining these teams are a great way to get leads for free (though a chunky split) while learning your craft and getting exposure to these lead generation best practices.

If you aren’t sure who some of the top teams are in your area, check out RealTrend’s team rankings.

Becoming a Salaried Agent

How about instead of leads you get a monthly salary instead?

Only about 5% of real estate agents are on a salary model, but is a growing category.

And your noob status isn’t always held against you! Often, these brokerages may prefer newer agents who don’t have to be “re-educated” on how the brokerage does business.

Redfin is the classic brokerage with salaried agents. Check there first!

Meanwhile, iBuyers like Offerpad and Opendoor are also both brokerages and hiring licensed real estate pros in the markets they are operating in.

Conclusion

Hustling is the best way for new real estate agents to get leads. It’s free. And there are several real estate lead generation methods that can turn in results quickly!

If you found this article useful, I recommend diving into my Real Estate Accountability Checklist, based on the four-pillar model, to keep you on task and focused in your weekly lead generation.

Updated April 20, 2023; Originally published May 19, 2021.