The Good and Bad of Realtor.com Lead Generation

 

What does it really take to generate leads in the digital age?

Gone are the days when a firm handshake, a well-placed billboard, or a catchy radio jingle could fill your sales funnel.

Now you have to navigate the drastically shifted landscape of lead generation, which demands a more strategic, data-driven approach that leverages the power of technology and the vast reach of the internet.

This involves understanding and effectively utilizing strategies such as SEO, PPC advertising, and social media marketing, to name a few.

In real estate, this also means utilizing online property listing platforms and CRM software to not only generate but also manage and nurture these leads.

At the very least, what is clear is that realtors are increasingly turning to online portals to generate leads. 

And as they say, 'where the crowd goes, there's usually something worth looking at.'

One such real estate portal, Realtor.com, has emerged as a major player in the digital real estate space, offering a suite of tools designed to help agents generate, nurture, and convert leads.

With its robust set of lead generation tools, Realtor.com offers realtors the opportunity to advertise their listings online to interested buyers as well as reach out to prospective sellers.

But with the rising costs and the host of other problems associated with portals like Realtor.com, many agents are beginning to question whether or not this is something they should pursue today.

Is Realtor.com still a viable real estate lead generation tool you should be using in 2024?

Before we explore this topic in depth, here’s the breakdown of all the popular real estate lead generation tools we’re covering in this series:

Today, we’re talking about Realtor.com and in the following sections, we'll delve deeper into how to maximize the platform for lead generation, weighing the pros and cons, and exploring strategies for capturing, nurturing, and converting leads.

 

Chapter 1The Role of Realtor.com in Lead Generation

Realtor.com's lead generation tools are designed to connect you directly with interested buyers.

The platform's 'Local Expert' feature, for instance, allows you to advertise in specific zip codes, ensuring their ads reach a targeted audience. This feature could really make a difference for agents who focus on specific neighborhoods or types of properties.

For example, if you specialize in high-end properties in the Beverly Hills area, you could choose to advertise specifically in “90210.” 

This targeted advertising ensures you're reaching potential buyers who are specifically interested in that area.

In other words, instead of advertising to a wide, non-specific audience and hoping for the best, you can channel their resources towards a focused group of potential buyers, increasing their chances of generating high-quality leads.

The tool promises a higher conversion rate as a result and better ROI for your advertising spend.

Key toward this is the platform’s integration with nearly all the popular CRMs.  After completing a phone call with a potential buyer, you can immediately log the details of the interaction, set reminders for future follow-ups, and even schedule emails or text messages right from the platform.

This could significantly reduce the amount of time you spend toggling between different systems to manage your leads, and the risk of letting important tasks fall through the cracks.

Meaning, with Realtor.com, the process of lead management is not only easier but also more efficient, especially when compare to traditional lead gen methods.

You no longer have to waste time searching through emails, notes, or separate CRM systems to remember details about a lead or to follow up with them.

Everything you need is integrated within the Realtor.com platform, ensuring that your time and attention can be dedicated solely to nurturing leads and closing deals.

Other Popular Features

a man in a suit holding a model of a house representing the concept of lead generation in real estate

Realtor.com also offers some other features that may appeal to some realtors, such as:

  • Lead routing: You can assign leads to different agents on your team based on criteria such as location, price range, or availability

  • Lead scoring: You can rank your leads based on their level of interest, urgency, and readiness to buy or sell

  • Lead nurturing: You can send automated messages to your leads based on their behavior, such as viewing a listing, saving a search, or requesting more information

  • Lead tracking: You can monitor your leads’ activity on the platform, such as how often they visit, what they search for, and what they click on

  • Lead reporting: You can measure your lead generation performance and ROI using various metrics and analytics 

In that sense, Realtor.com tries to be an all-in-one solution that covers every aspect of your lead generation and management process.

This is where much of the appeal comes from. Instead of using multiple tools and platforms to generate and manage your leads, you can simplify your workflow and save time and money by using Realtor.com’s services.

Or at least that’s the idea on paper.

Realtor.com Works. But…

someone is placing a piece of a puzzle together with their hands on a table top representing the concept of an all in one solution

As previously mentioned, too many agents have been burned by the industry’s current over-reliance on portals like Realtor.com, and that comes with the unintended result of their loss of control over their own leads and brand.

That’s why I always recommend diversifying your lead sources and building your own online presence that showcases your unique value proposition and expertise.

The question at this point isn’t really whether Realtor.com works or not. Not even whether you should use Realtor.com as a primary or a secondary source of leads.

No, the real question is how much are you willing to invest in a platform that you don’t own or control?

How much are you willing to depend on a platform that may change its rules or prices at any time? How much are you willing to share your leads and brand with other agents who may be competing with you?

 

Chapter 2Weighing the Pros and Cons of Realtor.com

The answers to the questions above will be different from realtor to realtor. Just as every agent has their own style, niche, and goals, what works for one agent may not work for another.

That’s why I always encourage agents to do the research and test before committing to any lead generation tool or platform, especially the portals, with your bottom line on the line.

Below, we cover some of the pros and cons of using Realtor.com to help you decide whether or not it’s something that will work for your or your team’s lead generation strategy.

The Advantages of Using Realtor.com

Realtor.com is a popular tool for a reason. The following are some of the pros of using the portal:

  1. Extensive reach: With millions of monthly visitors, Realtor.com provides a vast pool of potential leads for realtors. In fact, as of May 2023, Realtor.com had a total of 142.6 million visits, making it fertile ground for lead generation.

  2. Advanced targeting features: Realtor.com's advanced targeting features allow you to reach a larger audience and connect with potential clients who are actively interested in buying or selling properties.

  3. Comprehensive suite of marketing tools: Realtor.com offers a variety of ways to engage with potential clients, from online advertising to direct connections with interested buyers.

  4. Integration with CRM systems: Realtor.com's integration with CRM systems ensures that you can efficiently manage and nurture leads, turning potential clients into successful conversions.

  5. Market insights: Realtor.com provides ZIP code and city-level audience insights to help you target consumers who have recently searched for homes in your market. This data-driven approach can help you tailor your marketing efforts to reach the right audience at the right time.

The portal offers a comprehensive platform for real estate professionals to generate and manage leads. Its extensive reach, advanced targeting features, and integration with CRM systems make it a powerful tool for any realtor looking to grow their business.

Challenges and Criticisms

a man standing in front of a funnel filled with coins and a man in a suit standing next to it referencing the concept of expensive lead generation

But as stated, there’s also a lot of reasons for the mass exodus from the platform to other tools and portals in recent years. The following are commonly cited cons to using the portal, discussed in a little bit more detail:

Cost

Realtor.com's services, particularly its advertising options, can be quite expensive, especially for solo realtors or small teams. This has been one of the most commonly cited complaints of the platform.

According to Realtor.com’s own website, the cost of advertising varies depending on the zip code, market demand, and inventory availability.

However, some realtors have reported paying hundreds or even thousands of dollars per month for their ads, which can quickly eat into their profits.

Competition

there is a man that is looking at the camera in front of a crowd of people with one man staring at the camera representing the concept of being just another face in the crowd

Given Realtor.com's popularity, many realtors are vying for the same leads, making it more challenging to stand out and capture the attention of potential clients.

This means that you have to compete with other agents who are also advertising on the same platform, or even on the same listings. You may also have to share your leads with other agents who may contact them before you do. 

This can reduce your chances of converting leads into clients, and increase your cost per lead.

Limited Customization

It’s well known that Realtor.com's limited customization options make it difficult to differentiate your brand and stand out from competitors.

For example, you cannot customize your profile page, your ads, or your messages to reflect your brand identity and personality. You also cannot link your ads or messages to your own website or landing page, which can limit their ability to drive traffic and generate leads from other sources. 

That means ZERO control over the way people perceive your brand, no ability to highlight your differentiating edge to potential clients, and effectively no way to leverage the platform to drive traffic to your site.

Seeing that a strong and consistent brand is essential for any realtor who wants to be taken seriously as an expert, you’re kind of missing an essential component of your ability to convert.

Lead Quality

The quality of leads generated through Realtor.com can also be inconsistent, with some leads being unresponsive or not serious about buying or selling properties.

Picture this: you invest time and money into the platform, and you finally see some “leads” trickle into the system, only to find out that they are not qualified or interested in working with you.

Frustrating doesn’t even begin to describe what you would feel in that moment. And that’s a reality happening every day to realtors everywhere.

It can also affect your reputation and credibility if you contact leads who have already been contacted by other agents or who have already made a decision. Nobody likes being badgered, and it’s pretty common for realtors to receive negative reviews on Facebook and Google this way.

Quality is more important than quantity when it comes to leads, and if you have to pick, it’s best practices to focus on generating fewer but more relevant and engaged leads than chasing after a large number of low-quality leads.

Realtor.com doesn’t allow for that, however. 

Limited Customer Support

man in a suit yelling at a phone with his mouth open and hands on the phone representing the concept of a realtor frustrated at realtor.com support

Some realtors have reported difficulty getting in touch with customer support when experiencing issues with the platform. 

Not being able to resolve your issues quickly and effectively can impact your own lead generation efforts.

And if you’re dealing with technical issues that are actively impacting your bottom line or have questions or concerns about your account on top of other time sinks and tight deadlines—and let’s be honest, you always are—unresponsive customer support is the last thing you need.

I personally think that customer support is an essential aspect of any service provider, and that it’s important to choose a platform that offers reliable and responsive support when you need it.

That being said, these are not universal experiences or opinions. Some realtors have found success and satisfaction with Realtor.com’s services, and some may prefer its features and functionality over other platforms.

Ultimately, it depends on your personal preferences, goals, budget, and market.

 

Chapter 3Strategies for Capturing and Nurturing Leads on Realtor.com

a dart hitting in the center of a dart's target with a blue background and stars in the background representing the concept of targeting leads through optimization

As we’ve established, Realtor.com is no magic bullet. There are pros and cons that you need to consider, and just as a basic thing, it requires you to have a clear understanding of your goals and who your target audience is.

If you find that the tool works for you, there are ways to optimize your presence there to make sure that you’re getting the best ROI you can with your budget.

Here are some popular strategies you can try:

  1. Optimize Your Profile: Make sure it's complete, professional, and engaging. 87% of home buyers found photos very useful in their property search, so include high-quality photos, detailed descriptions of your services, and client testimonials to build trust and attract leads.

  2. Leverage Online Advertising: Use Realtor.com's advertising features to increase your visibility. Target your ads to specific locations or property types to reach the right audience.

  3. Engage with Leads Promptly: When a potential client shows interest, time is of the essence. Respond to inquiries promptly and professionally. Agents who respond to leads within the first five minutes are 100 times more likely to connect with the lead. The faster you respond, the higher your chances of converting the lead.

  4. Provide Value: Whether it's through insightful blog posts, market updates, or personalized property recommendations, providing value to your leads is crucial. This not only helps to establish you as an expert but also keeps leads engaged and encourages them to take the next step.

  5. Nurture Your Leads: Not all leads will be ready to buy or sell right away. Use Realtor.com's CRM integration to keep track of your leads, follow up regularly, and stay top of mind. When they're ready to make a move, you'll be the first person they call.

 

Chapter 4Tired of paying too much for leads? Try Ylopo.

Fed up with competing with other agents for the same leads on the same platform? Why even attempt to get in front of leads who are not interested or loyal to you? 

How would you like to find and talk to more people who want to buy or sell homes who are interested in your brand and what you can bring to the table?

Ylopo is a technology-driven alternative to portals that allows you to bring in high-quality, high intent leads through a mix of social and PPC ads.

The best part? You don’t have to compete with other agents for attention.

Here are just some of the things that Ylopo can do for you:

Make your own branded website

a laptop with a bunch of different items surrounding it on a blue background with a map and a globe representing a branded website

Ylopo gives you a highly-customized branded IDX website that has your name and your listings on it. Paired with our proprietary PPC and social lead gen technologies, you can funnel all interested leads to search for all the homes you have available on your website, just like they do on Realtor.com.

But unlike Realtor.com, you have full control over your website. This gives you the ability to customize it to match your brand and style.

Why this is so important?

Having your own branded website helps you build your online presence and authority. It also helps you capture more leads and keep them on your site, instead of sending them to other portals where they may see other agents’ ads.

51%

According to a 2021 study by the National Association of Realtors, 51% of home buyers found the home they purchased on the internet.

Find people on social media and online ads

a woman sitting at a laptop with a world map in the background representing social media advertising

Social media and online ads are great ways to find more people who want to buy or sell homes. They can help you grow your database faster, reach out-of-town buyers, and replace portal leads. 

They can also be more effective and cheaper than traditional pay-per-click (PPC) ads.

And that’s why Ylopo’s Dynamic Ads technology is so significant. We help your brand show up on Facebook, Instagram, and Google and show prospective leads homes that they might like based on their interests and behavior.

Our custom ads contain your brand and your message, which means people want to visit your website and talk to you because of your unique value proposition.

But unlike Realtor.com, you don’t have to shell out a lot of money.

We make sure that your ads reach the right people at the right time at the right price.

Stay top of mind effortlessly

And if your leads aren’t ready to buy yet?

We help you stay relevant to leads who have previously engaged with your content through RaiYa, our AI-assisted ISA.

Raiya combines the power of artificial intelligence with our 24/7 monitoring of consumer search behavior, creating a system that automatically communicates with leads, answers their questions, and provides buyers and sellers with relevant, on-point property & market information.

Raiya texts people and asks them questions based on real-time home search data, completely in a done-for-you fashion.

And while that’s going on, we also have dynamic remarketing going on, which shows your ads to previous leads so you stay at the top of their minds when it’s time to make a move.

Don’t take our word for it; listen to the success stories of our biggest clients about how they successfully navigated away from portals and generated more leads through Ylopo.

 

 

Get Better, More Consistent Leadswith Ylopo

Ylopo gives you a better way to find and talk to people who want to buy or sell homes. You can make your own website, find people on social media and online ads, keep in touch with them with messages and videos, and make videos to show off homes and yourself. You can also save money, time, and control over your business.

If you want to see how Ylopo can help you do better in real estate, sign up for a free demo today!

About the Author

Aaron “Kiwi” Franklin

Head of Growth