As a real estate agent, you should have a firm grasp of industry-specific terminology to effectively navigate the world of prospecting, lead generation, and marketing. This comprehensive guide will help you better understand the language used in the real estate business, and familiarize you with key concepts and strategies essential to your success.
Whether you’re a seasoned professional or just starting out, use this dictionary resource to help you stay ahead of the game and communicate confidently with clients and colleagues alike.
66 Must-Know Real Estate Terms for Agents
Prospecting Tools & Lingo
Leads & Lead Generation
Marketing Tools & Terminology
General Industry Terminology
Prospecting Tools & Lingo
What is Real Estate Prospecting?
Real Estate Prospecting is the proactive process of identifying and nurturing potential clients (leads) for your real estate business. By actively seeking out new leads, real estate agents can build a steady pipeline of clients, increasing their chances of success in a competitive market. This ongoing effort typically involves utilizing various strategies like networking, online marketing, and targeted outreach to connect with individuals interested in buying, selling, or investing in real estate.
What is Circle Prospecting?
Circle Prospecting is a localized lead generation strategy where real estate agents focus on a specific geographic area or neighborhood. This targeted approach involves direct outreach to residents within the chosen area, often through methods like cold calling, door knocking, or personalized mailers. Circle prospecting can be an effective way to capitalize on local market knowledge and connect with potential clients familiar with the area’s offerings.
What is Skip Tracing?
Skip tracing is the ethical practice of locating individuals’ contact information through legitimate public records and online databases. Real estate agents may utilize skip tracing services to find contact information for potential clients who may be difficult to reach through traditional means, such as those whose property listings have expired or whose information has changed. It’s crucial to emphasize legal and ethical practices when discussing skip tracing, highlighting the importance of using reputable services and complying with all data privacy regulations.
What is Cold Calling?
Cold calling refers to phone calls made by real estate agents to potential clients. Agents typically use prepared scripts to introduce themselves, explain their services, and gauge the individual’s interest in buying, selling, or investing in real estate. While cold calling can be an effective lead-generation tactic, it’s essential to approach it with professionalism, respect, and a focus on providing value. By tailoring your approach to each individual and demonstrating genuine knowledge and expertise, you can increase your chances of engaging potential clients through cold calling.
What is a Power Dialer?
Power Dialers are dialing software tools used by real estate agents to streamline their prospecting efforts. These tools automatically dial phone numbers from pre-approved contact lists, eliminating the time-consuming task of manual dialing and allowing agents to focus on engaging with potential clients. By utilizing power dialers, agents can maximize their call volume, increase their chances of connecting with potential leads, and ultimately boost their productivity.
What is Door Knocking?
Door knocking is a traditional prospecting method where real estate agents visit potential clients’ homes in person. The goal is to introduce yourself, build rapport, and explain how your expertise can benefit them in buying, selling, or investing in real estate. While door knocking can be effective, it’s crucial to be respectful of residents’ time and privacy, dress professionally, and have a clear and concise message prepared.
What is a Lead Management System?
A Lead Management System (LMS) is a software or system designed to help real estate agents organize, track, and nurture leads throughout the entire home buying or selling process. These systems offer features like contact management, lead scoring, task automation, and communication tools, allowing agents to stay organized, prioritize their efforts, and convert leads into clients efficiently. Investing in a robust LMS can be instrumental in streamlining your workflow, enhancing your client communication, and ultimately closing more deals.
What are Prospecting Scripts?
Prospecting scripts are pre-written dialogues or talking points that agents use during cold calls, door-knocking, or other prospecting activities to communicate with potential clients effectively. These scripts can help guide conversations, ensure key information is conveyed effectively, and maintain a professional demeanor. However, it’s crucial to avoid sounding robotic and to personalize the script to each individual and their specific needs. By utilizing prospecting scripts as a starting point and adapting them to each interaction, agents can increase their confidence and effectiveness in connecting with potential clients.
What is a Contact Rate?
Contact Rate is a crucial metric for real estate agents, measuring the percentage of leads they successfully reach and engage in direct conversation with. This metric typically focuses on phone calls or other direct communication methods like email or text messages. A higher contact rate indicates that your outreach efforts are effective in connecting with potential clients.
What is a Contact Ratio?
Contact Ratio is the number of contacts an agent makes relative to the total number of leads in their database or prospecting list, used to measure the effectiveness of outreach efforts. A balanced contact ratio is key. While aiming for a higher ratio indicates proactive outreach, excessive attempts can be counterproductive and lead to negative perceptions.
What is a Conversion Rate?
Conversion Rate is the gold standard for measuring success in real estate marketing and prospecting. It reflects the percentage of leads that ultimately become paying clients or complete a transaction. Understanding your conversion rate allows you to assess the effectiveness of your lead generation strategies and identify areas for improvement. Increasing your conversion rate is crucial for maximizing your success in the competitive real estate market.
What is Time Blocking?
Time Blocking is a powerful time management technique utilized by real estate agents to maximize their productivity and efficiency. This involves scheduling specific periods for crucial tasks throughout the day, such as prospecting calls, client follow-up, marketing activities, and administrative work. By time blocking, agents ensure they dedicate sufficient time to essential activities and avoid getting overwhelmed or distracted.
What is the DNC List?
The DNC List (aka The Do Not Call Registry) is a list of phone numbers that telemarketers and real estate agents are prohibited from calling without consent.
NOTE: REDX actively scrubs all lead data and homeowner phone numbers against the DNC list to help real estate agents stay compliant while cold calling.
Leads & Lead Generation
What is Real Estate Lead Generation?
Real estate lead generation is the lifeblood of any successful real estate business. It involves the proactive process of identifying and attracting potential clients (leads) who are interested in buying, selling, or investing in real estate. Through a combination of targeted marketing strategies and tactics, real estate agents can generate a steady stream of leads, ultimately leading to more transactions and increased revenue. Common lead-generation methods include online marketing, social media engagement, content creation, networking, and community involvement.
What is a Cold Lead?
Cold leads are potential clients who have had minimal or no prior interaction with a real estate agent. They may not be aware of the agent’s services or haven’t actively expressed interest in buying or selling a property. Converting cold leads requires consistent and strategic outreach through various channels, such as email campaigns, cold calling, or social media advertising. Building trust and providing valuable information are crucial steps in transforming cold leads into warm or hot leads.
What is a Warm Lead?
Warm leads have shown some initial interest in working with a real estate agent. This might involve actions like responding to a marketing campaign, visiting an agent’s website, attending an open house, or requesting information about a property. Warm leads are more receptive to further communication and require personalized outreach that addresses their specific needs and interests. Nurturing these leads through regular communication, valuable content, and expert advice can increase their chances of converting into clients.
What is a Hot Lead?
Hot leads are highly motivated and ready to take action soon. They might be sellers prepared to list their property, buyers actively searching for a home, or investors eager to make a purchase. Hot leads require immediate and focused attention from the agent. Prompt communication, clear expertise, and efficient service are crucial in converting hot leads into successful transactions.
What is Lead Nurturing?
Lead nurturing is the ongoing process of building and maintaining relationships with potential clients who haven’t yet converted into paying clients. It involves providing them with valuable information, engaging content, and personalized communication aligned with their specific needs and interests. By nurturing leads over time, you can gradually build trust, establish expertise, and ultimately convert them into loyal clients.
What is Lead Scoring?
Lead scoring is a data-driven technique that assigns numerical values to potential clients based on various factors. These factors can include demographics, online behavior, engagement level, and expressed needs. By analyzing these scores, real estate agents can prioritize their outreach efforts and allocate their resources more efficiently. Focusing on high-scoring leads with a greater likelihood of converting allows agents to maximize their productivity and close more deals.
What is an Expired Lead?
Expired leads typically consist of contact information for homeowners whose listings with a previous agent haven’t resulted in a sale. Expired leads represent a valuable opportunity for real estate agents to connect with motivated sellers. As the property has already gone through the marketing process, expired leads often show renewed interest in selling and are more receptive to outreach from new agents. By effectively engaging with expired leads, agents can secure new listings and close deals quickly.
What are GeoLeads?
GeoLeads are a type of real estate lead consisting of contact information for homeowners within a specific geographic area. These leads are especially helpful for agents practicing “circle prospecting”, a strategy where they target a specific neighborhood or community. By utilizing GeoLeads, agents can focus their outreach efforts on a population familiar with the local market and potentially interested in buying, selling, or investing in the area. GeoLeads can be a valuable tool for hyper-local marketing and building a database of potential clients.
What are For-Sale-By-Owner (FSBO) Leads?
For-Sale-By-Owner (FSBO) leads offer real estate agents the chance to connect with homeowners who are selling their property without agent assistance. These leads provide contact information for homeowners who are taking a DIY approach to selling their property. While some FSBO sellers may remain committed to selling on their own, others might be open to considering representation from an experienced agent, especially if their initial efforts haven’t yielded success. Reaching out to FSBO leads with expertise and value propositions can help agents convert these leads into clients and secure new listings.
What are For-Rent-By-Owner (FRBO) Leads?
FRBO Leads are contact information for a (potentially vacant) property owned by an investor or landlord without the assistance of a property manager or real estate agent. These leads can be particularly valuable for property managers and real estate investors looking to expand their portfolio. By connecting with FRBO owners, these professionals can potentially secure new management contracts or identify off-market investment opportunities.
What are Pre-Foreclosure Leads?
Pre-Foreclosure Leads are contact information for a homeowner who has defaulted on their mortgage payments, but the property has not yet been foreclosed and sold at auction. It’s crucial for agents to approach pre-foreclosure leads with empathy and understanding, focusing on offering assistance and resources.
What is a Database?
Real estate databases are the foundational tools for any successful agent. They are organized collections of information about potential clients, including their contact details, real estate interests, and past interactions. Databases can streamline communication and automate follow-ups for real estate professionals.
What is a Sphere of Influence (SOI)?
Your Sphere of Influence (SOI), also known as a circle of influence or COI, is your network of personal and professional contacts who can be a valuable source of leads and referrals. This includes your family, friends, past clients, colleagues, neighbors, and anyone else you know. Building a strong SOI is crucial for real estate agents to generate a steady stream of leads.
What is an Open House?
An open house is an event where real estate agents open a listed property to the public, allowing potential buyers to tour the home and ask questions. Open houses offer a casual way to showcase the property and create interest among prospective buyers. It’s an opportunity for agents to connect with potential clients and gather leads.
Marketing Tools & Terminology
What is The Buyer’s Journey?
The Buyer’s Journey is the steps someone takes when they first realize they need help with buying or selling a house until they choose a specific real estate agent or company to work with – generally following this journey structure: awareness, research, evaluation, purchase. Understanding the Buyer’s Journey helps real estate agents tailor their marketing and communication strategies at each stage. By providing valuable information and support, agents increase their chances of converting prospects into clients.
What is a Real Estate Brand?
A Real Estate Brand is the identity, reputation, and overall perception of an agent or broker’s real estate business in their local market. It encompasses an agent’s unique value proposition, visual elements like logos and slogans, and the way they communicate and interact with clients. A strong real estate brand helps agents differentiate themselves, build trust, and attract their ideal clients.
What is a CRM?
A CRM (Customer Relationship Management) is a system or software that helps real estate agents manage and organize their contacts, leads, and clients. A well-implemented CRM enables agents to track interactions, automate tasks, and gain insights into their business. Using a CRM effectively can improve agent efficiency, strengthen client relationships, and ultimately lead to more closed deals.
What is a Drip Campaign?
A drip campaign is a marketing strategy that involves sending a series of pre-written messages to leads and clients over time, often via email or SMS. These automated campaigns nurture leads, keep agents top-of-mind, and personalize communication based on a prospect’s actions or interests. Drip campaigns can be used for various purposes, such as welcoming new leads, providing educational content, or promoting listings.
What is a Lead Capture Form?
A lead capture form is an online contact form placed on a website or social media platform to collect contact information from potential real estate clients. These forms typically ask for basic information like name, email address, and phone number. Effective lead capture forms are essential for real estate agents to build their databases and generate new business opportunities.
What is Direct Mail?
Direct mail is a real estate marketing strategy that involves sending promotional materials, such as postcards or flyers, directly to potential clients via postal mail. Direct mail campaigns can target specific neighborhoods or demographics, allowing for a focused approach. While a more traditional marketing tactic, direct mail can still be effective in generating leads and increasing brand awareness within a local market.
What is Referral Marketing?
Referral marketing is a strategy that relies on existing clients or contacts to recommend your real estate services to others. Word-of-mouth recommendations are powerful in real estate, and referral marketing encourages happy clients to become brand advocates. Incentivized referral programs can further boost the effectiveness of this strategy.
What is Social Media Marketing?
Social media marketing involves leveraging social media platforms like Facebook, Instagram, TikTok, and LinkedIn to promote your real estate services, generate leads, and build your brand. By sharing engaging content, running targeted ads, and interacting with followers, real estate agents can establish a strong online presence. Social media is a valuable tool for connecting with potential clients and showcasing your expertise.
What is Video Marketing?
Video marketing involves sharing video content to promote your real estate services and listings, often shared on YouTube and other social media platforms. Videos can offer engaging property tours, client testimonials, or neighborhood highlights. Effective video marketing helps build your brand, generate leads, and showcase your expertise in a dynamic format.
What is SEO?
Search Engine Optimization (SEO) is the process of improving your website’s visibility in search engine results to attract more potential clients. Good SEO involves optimizing website content, keywords, and technical elements to rank higher on search engine results pages (SERPs). SEO is essential for real estate agents to increase their online presence and attract organic traffic.
What is Geographic Farming?
Geographic farming is a real estate strategy where agents consistently market to a specific geographic area or neighborhood to establish themselves as the go-to real estate expert in that location. This focused approach often involves direct mail, community involvement, and targeted online marketing. Geographic farming helps agents build a strong reputation and become the top-of-mind choice within their chosen farm area.
What is Niche Marketing?
Niche marketing is a targeted marketing approach focused on serving a specific group or type of client (such as first-time homebuyers, luxury property buyers, or empty nesters). By specializing in a niche, real estate agents can tailor their marketing messages, services, and expertise to better serve a defined audience. Niche marketing helps agents stand out in a competitive market.
What is ROI?
ROI (Return on Investment) is a measure of the profitability of an investment, calculated by comparing the gains to the costs. In real estate, ROI is used to evaluate the effectiveness of marketing campaigns, lead-generation strategies, and other business expenses. It helps agents make informed decisions about where to allocate their resources.
What is a Sales Funnel?
A sales funnel is a visual representation of the steps potential clients take when considering a real estate agent’s services, usually starting with awareness, consideration, and decision. Understanding the sales funnel allows agents to tailor their marketing and communication strategies to guide leads through each stage.
What is Top of Funnel Marketing?
Top-of-funnel marketing encompasses the initial stages of the sales funnel, focused on generating awareness and attracting potential leads. This includes strategies like social media, content marketing, and online advertising to reach a broad audience. Top-of-funnel activities introduce your brand and services to potential clients.
What is Bottom of Funnel Marketing?
Bottom-of-funnel marketing targets leads who are close to making a decision and focuses on converting them into clients. This involves personalized communication, consultations, and addressing any final concerns. Bottom-of-funnel marketing efforts are designed to close deals and secure signed agreements.
What is a Pipeline?
A pipeline is a term used to describe the pool of potential clients that an agent is currently nurturing, moving them through the sales funnel toward becoming clients. A well-managed pipeline is essential for consistent lead generation and business growth. Tracking your pipeline helps real estate agents forecast potential revenue and identify areas for improvement.
What is Inbound Marketing?
Inbound marketing is a strategy to attract real estate clients by creating valuable content and experiences tailored to their needs, rather than through traditional disruptive methods. This includes tactics like blogging, SEO, and social media engagement. Inbound marketing positions agents as helpful resources, fostering trust and attracting leads organically.
What is Outbound Marketing?
Outbound marketing is a traditional marketing method that involves reaching out to potential clients directly, such as cold calling, door knocking, or direct mail campaigns. While outbound tactics can still be useful in certain contexts, they often have a lower success rate in today’s digital landscape.
What are Touchpoints?
Touchpoints are the various interactions and points of contact between a real estate agent and a potential client, such as emails, phone calls, social media interactions, or in-person meetings. Managing touchpoints effectively is crucial for building relationships and nurturing leads throughout the buyer or seller journey.
What is Retargeting?
Retargeting is an online advertising strategy that displays ads to people who have previously visited a real estate agent’s website or interacted with their content. This tactic keeps your brand top-of-mind and encourages potential clients to return and take further action.
What is a USP?
A USP (Unique Selling Proposition) is a distinctive feature or benefit that sets a real estate agent or their services apart from competitors. A strong USP helps potential clients understand what makes you different and why they should choose you.
What is a Virtual Tour?
A virtual tour is an online, interactive presentation of a property that allows potential buyers to explore the space remotely, either through pre-recorded video, 360-degree images, or live virtual walkthroughs. Virtual tours offer convenience and accessibility, especially for out-of-town buyers or those with busy schedules.
General Industry Terminology
What is the MLS?
The MLS (Multiple Listing Service) is a database of property listings shared among real estate agents and brokers. It provides agents with up-to-date information on available properties, facilitates cooperation between agents, and helps match buyers with suitable homes. The MLS is a critical resource for real estate professionals.
What is a Buyer’s Agent?
A buyer’s agent is a real estate agent who represents the home buyer in a real estate transaction. They help buyers find suitable properties, negotiate the best terms, and guide them through the complex process of purchasing a home. A buyer’s agent advocates for their client’s interests throughout the transaction.
What is a Seller’s Agent (Listing Agent)?
A seller’s agent (aka listing agent) is a real estate agent who represents the seller in a real estate transaction. They help price the property competitively, market it effectively to potential buyers, negotiate offers, and manage the entire sales process. A seller’s agent aims to get the best possible price and terms for their client.
What is a Dual Agency?
Dual agency is a situation in which a single real estate agent or brokerage represents both the buyer and the seller in the same transaction. This situation can create potential conflicts of interest and requires careful disclosure and consent from all parties involved. Dual agency practices vary by state.
What is a Listing Appointment?
A listing appointment is a meeting between a real estate agent and a potential seller to discuss the agent’s services, marketing strategy, and proposed listing price for the property. The goal of the listing appointment is for the agent to secure a listing agreement with the seller.
What is a Listing Presentation?
A listing presentation is a formal presentation where a real estate agent outlines their marketing plan, pricing strategy, and credentials to convince a potential seller to list their property with them. A strong listing presentation showcases the agent’s expertise and ability to sell the property effectively.
What is a Comparative Market Analysis?
A Comparative Market Analysis (CMA) is an in-depth evaluation of a property’s market value, based on recently sold, active, and expired listings of similar properties in the area. CMAs help sellers price their homes competitively and provide agents with data to support pricing recommendations.
What is an Expired Listing?
An expired listing is a property that was previously listed on the MLS but did not sell within the agreed-upon timeframe of the listing agreement. Expired listings can represent potential leads for real estate agents to reach out to and offer their services.
What is an Investor?
An investor is an individual or entity that purchases real estate with the goal of generating income or profit. Real estate investors may focus on rental properties, fix-and-flips, or long-term capital appreciation. Agents can specialize in working with investors to identify and acquire suitable investment properties.
What is a Landlord?
A landlord is an individual or company who owns rental property and leases it to tenants. Landlords are responsible for maintaining the property, addressing tenant concerns, and abiding by landlord-tenant laws.
What is a Vacant Rental Property?
A vacant rental property is a rental unit that is currently unoccupied and available for lease. Vacant rental properties present opportunities for landlords to find new tenants and for real estate agents to assist in the leasing process.
What is a For-Sale-By-Owner (FSBO)?
For sale by owner (FSBO) homes are sold by the homeowner without the help of a listing agent or broker. Sellers typically choose to sell their home FSBO to avoid paying the real estate agent a commission. FSBOs can present promising opportunities for agents to approach homeowners and offer their professional services.
What is a Pre-Foreclosure?
Pre-foreclosure is the stage in which a homeowner has defaulted on their mortgage but the property has not yet been repossessed by the lender. Pre-foreclosures can sometimes represent opportunities for real estate investors or agents specializing in short sales.
What is the Snowball Effect?
The snowball effect describes the momentum that builds as real estate agents successfully close deals, gain experience, and generate referrals. Each successful transaction can lead to new clients and increased income, creating a self-reinforcing cycle of growth.
What is Market Absorption Rate?
The market absorption rate is a metric that indicates the pace of home sales in a particular market. It’s calculated by dividing the number of available homes by the average number of homes sold per month. Understanding the market absorption rate helps agents and investors gauge supply and demand dynamics.
What is the Internet Data Exchange?
The Internet Data Exchange (IDX) is a system that allows real estate agents to display MLS listings on their websites. IDX integration enhances agent websites by providing valuable property information to visitors and helps generate leads.
About REDX
REDX is an all-in-one lead data and prospecting platform that helps agents connect with qualified buyers and sellers. The platform includes seller leads, a dialer with up to three lines, social media tools, and a lead management system that simplifies first contact and follow up.
Click here to watch a demo, or call (800) 731-7339 ext. 1 to learn more about Expireds, FSBOs, GeoLeads, FRBOs, Pre Foreclosures, our Power Dialer and Social Media Tools for paid ads and content creation.
REDX maintains the position that all agents should be compliant with state and federal telecom laws – learn more here.
