Real Estate Marketing

The Simple Way to Find Listing Leads as an Agent Without Leaving Your Computer

Expertise: Personal Development, Business Management, Real Estate Marketing, Real Estate Deal Analysis & Advice, Real Estate Investing Basics
70 Articles Written

dallas realtor south dallas real estateIf I had a "secret sauce" (besides determination and persistence), I would say it comes down to how I pull my leads. Whether acting as a real estate agent or investor, your whole business in real estate marketing is based on the quality of the list you pull. And for real estate agents out there reading or investors who are thinking about picking up their license, I am about to share with you one of the most lucrative methods I know to get high converting potential listing leads (sellers) as an agent. These leads are individuals who are often ready to move, and the beauty is you are often contacting them before they start to actively look for an agent to represent them and before they start receiving marketing from anyone else.

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Related: How to Be the Real Estate Investor Motivated Sellers WANT to Contact

The Most Lucrative Real Estate Agent Leads

Most people just get their data from a third party and call it a day. That’s fine, but I would strongly advocate getting your hands dirty and doing it yourself. The way I approach this is like a data scientist — but you don’t have to have a bunch of experience or a technical degree to do this. In fact, it’s pretty easy, and if you remember elementary math, you will be fine. But being able to understand what is going on within the data is the difference between getting mediocre leads and getting a highly converting, lucrative list.

Now, carpet bombing has its advantages; don’t get me wrong. This is something I love to do if I want to announce a new listing to a neighborhood or let everyone know the house on the corner was just sold by me, but for my bread and butter, there are more cost and time-effective ways.

They Key: Subdivision Turnover Rate

The variable I am going to teach you when looking for listings is what I call “subdivision turnover rate.” To put this into laymen’s terms, everyone is going to move for one reason or another, whether that is to upsize, downsize, move for a job or move out of state. No one is going to stay in the same house forever.
Fort Worth Real Estate
For any given house in a neighborhood, you can view a detailed history, and within that history will be a certain amount of time on the deed date. Whether that is a few years or over a decade, you want to get this number — use either the average or median for the whole neighborhood. You can obtain this data from your local Central Appraisal District (CAD). I do this with basic software tools that come with Windows, namely MS Access and Excel, once I have the data. Every county is different, from how they organize their data to how they store it. For some counties, you can download it for free off their website, while in others you have to pay for it, and some won’t even list it on their website; you may have to call or email around before you can obtain it — and even then, they might charge you for it.

Once you have filtered down to your target market area and the neighborhoods you would like to market to, you need to find the subdivision turnover rate. This is very simple, and all you need to do is look at the difference between the current year and what the deed date was for the last owner of record. You are looking for the deed duration of the PREVIOUS owner of the house, not the current owner. Once you have this, you can simply find the median or average (depending on your preference) of the deed date. Usually this is anywhere from 5 to 11 years or so.

Related: 10 Influential BiggerPockets Members Share Their Secrets to Getting a ‘Yes’ From Sellers!

If you know a little bit about Access or Excel, this can all be automated for you once you know what you’re doing when you poke around the database. Alternatively, this can be something that can easily be outsourced once you teach someone how to do it correctly.

Find Your Targets

Now here comes the fun part: You can start to target individual houses within the subdivision that will likely be moving soon.

What we will do is filter out all occupants that have been in their house for greater than or equal to whatever number you found for the subdivision turnover rate. For example, if one of my target market areas is Dallas and I am farming the Preston Hollow subdivision, let’s say the database showed the subdivision has a median turnover rate of 10 years. I will filter out any occupants within that subdivision that have not been in the current house for at least 10 years. What I am left with is prospects within the neighborhood that are likely to move sometime soon in the future. How can I be confident in saying this? Because we already looked at the subdivision turnover rate. This is historical and hyper-local for that specific neighborhood. I have been doing these types of mailings for many years and can tell you first hand this technique works.

How to Mail Prospects

For these leads, I recommend mailing them once every 3 months or so — about 4 times a year. Whatever your marketing piece, just stay in front of them. I have historically found this to be my single best use of marketing dollars for acquiring new listings as an agent. This is in essence how I would recommend people “farm” an area. Remember as well to pull the list for your neighborhoods at least once a year so you can make sure you are always mailing the warmest prospects.

Investors: Do you use this method to find deals? What’s your favorite way to find motivated sellers?

Let me know with a comment!

Chris is an active real estate investor who buys and flips houses in the Dallas real estate market. He enjoys helping others along on their journey. I...
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    Adam Schneider Flipper/Rehabber from Raleigh, NC
    Replied almost 5 years ago
    Chris, Are you marketing to get a listing or to buy the house wholesale?
    Chris Feltus Residential Real Estate Agent from Fort Worth , Texas
    Replied almost 5 years ago
    This is for listings.
    Jeremy T. Investor from Pittsburgh, PA
    Replied almost 5 years ago
    Nice, I like/appreciate anything that combines data analysis, probabilities, human behavior, and marketing so this is something that is right up my alley. One question: can this be applied to -any- neighborhood (there are many around me with homes over 100 years old), or is this specifically geared toward more recent, ‘textbook’ style subdivisions?
    Chris Feltus Residential Real Estate Agent from Fort Worth , Texas
    Replied almost 5 years ago
    Any neighborhood, any location, any age.
    Timothy Church Real Estate Agent from Galveston, TX
    Replied almost 5 years ago
    I am currently a new investor who is actually in the process of getting my real estate license. My current focus is locally in Galveston, Texas. The island is only 64 sq mi and a majority of the housing is on about a third of that. Should I break down into smaller neighborhoods for the analysis or go with an overall island standard since the island is small?
    Timothy Lewis Banker from Bowie, MD
    Replied almost 5 years ago
    Chris, this concept is new to me but makes a ton of sense. Thanks for sharing this metric. It seems like it’ll help me work smarter after I get my license in the next few months.
    Mike Tetzel Specialist from Nashville, TN
    Replied almost 5 years ago
    I’m switching over to general real estate in the near future so this will be a big competitive advantage for me. Thank you for the information!
    Russell Brazil Real Estate Agent from Rockville, MD
    Replied almost 5 years ago
    Good article. Farming is a great method to get listings
    Cody Steck Residential Real Estate Agent from Salt Lake City, UT
    Replied almost 5 years ago
    Awesome article! What kind of response rates and conversion rates are you seeing with this method?
    Mohammad (Asad) Asaduddin Wholesaler from Houston, TX
    Replied almost 5 years ago
    Great post Chris. I should have started on this long back. Can I discuss some strategies with you or anyone on the phone? 832-275-3600. Thanks.