In real estate, a "lead" is a person who has shown some level of interest in buying, selling, renting, or investing in property and whose contact information an agent, broker, or team has obtained for the purpose of following up. A lead is essentially a potential client at an early stage of the sales pipeline — before they've signed a listing agreement, buyer representation agreement, or made a purchase.
Leads typically come from sources such as:
- Online inquiries — someone filling out a form on a website, clicking an ad, or requesting a home valuation
- Referrals — past clients, friends, or other professionals (like lenders or attorneys) passing along a name
- Open houses — visitors who sign in
- Cold outreach or door-knocking — expired listings, "For Sale By Owner" (FSBO) sellers, or targeted farming areas
- Social media and paid advertising
- Lead-generation platforms (e.g., Zillow, realtor.com, or third-party services that sell contact information to agents)
Leads are often categorized by how "warm" or "hot" they are — meaning how ready and motivated they seem to act soon. A "cold lead" might just be browsing, while a "hot lead" could be pre-approved for a mortgage and actively touring homes. Agents typically use a customer relationship management (CRM) system to track, nurture, and follow up with leads over time, since many buyers and sellers take weeks or months to move from initial interest to a signed contract.
The process of finding and cultivating these contacts is called "lead generation," and converting them into actual clients (and closed deals) is a core part of most real estate agents' and teams' day-to-day business. Because commissions are typically the primary source of income for agents, generating a steady pipeline of quality leads is considered essential to sustaining a real estate career.