What is a "lead" and why is it important to realtors?

To realtors, leads are considered "gold". The book is full of tactics, tips, and tricks on getting a lead and following a lead up. The idea is to effectively convert leads into clients and successfully close a deal. In very simple terms, a lead is a prospective client.  

What makes a Lead?

What is the difference between a lead and a person that walks into the real estate office? For starters, a lead has shown genuine interest in acquiring a property. However, the pivotal difference between a lead and a walk-in is that the former has been provided with the realtor’s contact information or the realtor has been given the lead by someone they know. 

This information may include phone numbers and/or email, and it becomes gold in the hand of a realtor. From then on, it is the job of the realtor to convince this prospective client to buy.

Why is a Lead Important to Realtors?

As a business, real estate agencies sometimes struggle to find clients interested in their products. Once they find someone who shows only a little interest, the marketing strategy must be targeted towards one goal:  convert this lead into a buyer.  

The first step is to attract people to the business. It is within the job of real estate agencies to bring clients to their office instead of the competition.  You will never find a person at the mall who looks at a real estate billboard and all of a sudden gets the idea that they need a house. Potential leads are usually people who have already made their minds up about buying a property or selling one they already own.

Success for a realtor means bringing buyer or seller into their office instead of the competition. This is why leads are so important in real estate.