Not all real estate leads are created equal. Some are warm, some are cold, and some require hours of hustle and careful nurturing to convert. With so many lead generation options, how do you decide where to invest your time, effort, and money?
If you’re asking questions like “Is the Zillow lead quality worth the high cost?” or “Do Facebook ads really deliver results?” this post will give you the clarity you need. We’ll compare three popular lead sources for real estate agents—Zillow, Facebook Ads, and FSBOs/Expired Listings—to help you pinpoint the best options for your business goals, budget, and time availability.
By the end of our blog about the best lead sources for real estate agents, you’ll have actionable insights for kickstarting your lead generation strategy. Plus, we even include a free downloadable “5 Strategies to Generate Real Estate Leads” to help you take the next step.
Key Takeaways
- Different Budgets and Time Commitments: Zillow suits high-budget, low-time agents; Facebook Ads fit moderate resources with solid follow-up; FSBOs/Expireds work best for those with more time than money.
- Lead Quality and Nurture Effort Vary: Zillow leads are warmer and costlier, with less nurturing needed; Facebook leads are colder and need long-term engagement; FSBOs/Expireds require active outreach but often involve motivated sellers.
- Blended Strategies Yield Consistency: Combining multiple lead sources helps maintain steady lead flow and reduces dependence onany single channel.
- Align Strategy With Business Goals: Effective lead generation depends on matching your approach to your goals, available time, and nurturing capabilities.
How We’re Comparing Lead Sources
Before we break down each option, it’s essential to understand the criteria we’ll use for comparison. These factors are key to evaluating the effectiveness and feasibility of a lead source:
- Cost Per Lead: How much do you need to spend to secure a single lead?
- Lead Quality: How likely is a lead to convert into a successful sale?
- Time to Close: What’s the average time it takes to turn this lead into a client?
- Nurture Effort: How much follow-up and relationship-building is required to close the deal?
With these in mind, let’s explore the pros, cons, and ideal use cases for each lead source.
Real Estate Lead Generation Comparison
Understanding how different lead sources perform across these metrics will help you determine the best strategies for your real estate business.
Zillow Leads
High Cost, High (Warmer) Intent
Zillow is one of the most recognizable platforms in the real estate industry, but does its reputation translate into worthwhile leads?
Pros
- Warm Leads: Zillow leads are often closer to making a buying or selling decision. These are people actively searching for homes or agents.
- Minimal Nurturing Required: Since these leads already have intent, the follow-up process tends to be shorter and less time-consuming.
Cons
- High Cost Per Lead: Zillow leads can be expensive, with some agents reporting costs ranging from $50 to $300 per lead, depending on the market.
- Heavy Competition: You’re not the only agent receiving these leads. Standing out can be challenging, especially in competitive markets.
Best For: Zillow leads are best for agents with higher budgets but limited time to nurture leads. If you value getting in front of interested prospects quickly, Zillow might be the right fit.
Facebook Ads
Low Cost, Cold Audience, High Nurture
With over 2.9 billion monthly active users, Facebook is a goldmine for reaching new audiences. But is it the right tool for generating real estate leads?
Pros
- Low Cost Per Lead: Facebook leads for real estate agents typically range from $5 to $30, though quality varies by targeting and ad strategy.
- Pipeline Building: Facebook works well for creating a long-term lead pipeline, especially when paired with strategic retargeting campaigns.
Cons
- Cold Leads: Many Facebook leads are at the awareness stage and may take time to convert into actual clients.
- High Nurturing Effort: Engaging with and nurturing these leads through email campaigns, calls, and content is critical but time-consuming.
Best For: Facebook ads are best for agents with medium budgets and solid follow-up systems. If you’re in it for the long game and have the structure to engage cold leads, Facebook Ads are a cost-effective choice.
FSBOs and Expired Listings
Free Leads, High Hustle
For sale-by-owner (FSBO) and expired listings require a proactive approach. These are individuals who have listed their homes independently or unsuccessfully tried to sell.
Pros
- Little to No Cost: Unlike Zillow or Facebook Ads, FSBO prospecting typically involves little to no upfront costs.
- Seller Intent: These leads have already expressed interest in selling their property, making them valuable opportunities.
Cons
- Outbound-Heavy: Cold calling, door-knocking, and direct mail are often required to connect with these leads.
- Rejection Rates: Be prepared for declines, as FSBOs can be wary of agents, and expired listings may be frustrating for sellers.
Best For: This strategy is best for new agents or those with more time than money. If you’re willing to put in the hustle and handle objections, these leads can be a goldmine.
Learn More: 10 Prospecting Tips to Generate More Leads
Decision-Making Framework: Time vs Budget
Here’s a simple breakdown of where you should focus based on your time and budget:
- Low Budget, High Time = FSBO/Expired Listings
- Medium Budget, Medium Time = Facebook Ads
- High Budget, Low Time = Zillow
For the best results, consider combining two or more strategies to create a consistent lead flow. For example, pair Zillow leads with a robust Facebook retargeting campaign, or use FSBOs to supplement your Zillow efforts when budgets fluctuate.
Taking the Next Steps
Lead generation is all about aligning your real estate marketing strategies with your goals, resources, and market conditions. But developing a lead source strategy is just one aspect of growing a successful real estate business. That’s why you should request Colibri Real Estate’s Agent Blueprints for Success.
These blueprints provide real estate professionals with a clear path to career growth, whether they’re just starting out or seeking advancement. Packed with expert advice, practical strategies, and actionable tips, this resource is designed to help agents build a strong foundation and achieve their goals. Our blueprints provide everything needed to succeed in real estate, from networking to crafting standout listings — and generating leads.
