Finding out the cost of Zillow leads can confuse many real estate agents. These leads range from $20 to $60 each. This article will help you understand how much you might spend on Zillow leads and what affects their price.
Keep reading for more info.
What Are Zillow Leads?
Zillow leads are contacts from people looking to buy or sell homes. They come through Zillow, a big real estate site. Agents get these leads when someone on Zillow wants more info about a house or needs an agent.
Zillow Premier Agent (ZPA) started in 2008 to help with this. It connects agents and potential clients for a fee.
Agents love it because they reach lots of people fast. With over 224 million visitors every month in 2023, that’s a huge chance to find buyers and sellers. And the numbers keep growing! In 2024, around 217 million folks visit each month.
So, getting leads from Zillow means tapping into a big pool of possible deals. This system is part of what makes ZPA attractive for lead generation in real estate marketing.
How Do Zillow Leads Work?
Zillow Premier Agent matches real estate leads with agents. It uses a special math formula based on the agent’s budget and where they want to work. This way, agents get connected with people looking to buy or sell homes.
For the best chance, agents aim for at least 5,000 times their ads show up in their chosen area.
This system helps boost how often people see an agent on Zillow and its partner sites, Trulia and StreetEasy. Agents in big city areas might spend about $1,000 every month. Those in smaller places spend less, between $300 to $500 monthly.
Some choose Zillow Flex which lets them pay a commission after they close deals instead of upfront costs.
Next, we will look into what affects how much money you need to spend on these leads.
Factors That Affect Zillow Lead Costs
Several things can change how much you pay for Zillow leads. Where your property is, how many other agents want leads there, the usual price of homes in that area, and whether you’re the only one getting a lead can all make a difference.
Want to know more? Keep reading to see how these factors play out.
ZIP Code and Location
Your ZIP code plays a big part in Zillow lead costs. In areas with more real estate agents, competition goes up. This means each share of leads costs more if you want a bigger piece of the pie.
Think about it, being in a crowded place makes everything harder to get, right? It’s the same with leads in busy ZIP codes.
In places where lots of people want to live, prices for leads can also jump. That’s because houses there have higher values. So, getting just one client from that area could mean a lot more money in your pocket.
Agents pay attention to these details because they affect how much they spend on getting new clients and their return on investment (ROI).
Market Competition
As we look beyond ZIP codes and locations, the battle for leads in real estate gets fierce. High market demand drives up costs, making some areas pricier than others. In spots where many agents fight for attention, prices can soar to $450-$500 per lead.
This is because everyone wants a piece of the pie.
This fight decreases your chance to stand out. Imagine you’re shouting in a crowded room – it’s hard to be heard! To compete, you’ll need more than just good listings; performance metrics and online advertising strategies become your best friends.
Smart use of technology like CRMs can also help manage those precious leads better, ensuring not a single opportunity slips through the cracks.
Average Home Values
Homes in different areas cost different amounts. In some places, houses are very expensive. In others, they’re cheaper. The price of a house can change how much you pay for Zillow leads.
If houses in an area cost a lot, then Zillow leads there also cost more.
Zillow looks at the average price of homes to decide lead costs. They use property values to set prices for their services. So if you’re selling high-cost homes, prepare to spend more on getting leads from Zillow.
Lead Volume and Exclusivity
The price of homes also shapes how many leads agents get and whether they share them. Leads are not just for one agent. Many realtors may talk to the same person. This makes it a race to win over each lead.
Agents must look at how often they turn leads into deals. They should aim for making twice back what they spend—10% success is good to break even. Getting lots of leads doesn’t mean much if few turn into sales.
So, picking the right ZIP codes matters, but so does working well with each potential buyer or seller you chat with.
Zillow Premier Agent Pricing Models
Zillow offers different ways for agents to pay for leads. You can choose a direct payment per lead or join a program where you pay based on results.
Cost Per Lead Model
In the Cost Per Lead Model, real estate agents pay for each lead they get. Prices can change a lot depending on where you are and how competitive the market is. You might spend between $20 to $60 for every person interested in buying or selling a home.
This model lets agents plan their budgets better because they know how much each lead will cost them.
This way of pricing also pushes agents to make the most out of every lead. Since leads in areas with less competition can be as low as $20 and go up to $75, it’s key for agents to work hard on turning those leads into actual deals.
It makes sense for both new and experienced agents who want clear costs without surprises.
Flex Program and Performance Fees
Zillow offers a Flex Program where real estate agents aren’t required to pay upfront. Instead, they allot a portion of their commission once they finalize a contract. This fee varies from 20 to 35%.
It gives an impression of Zillow having faith in your successful performance and then claiming a percentage of your accomplishment. When it comes to selling houses, the referral fee can elevate up to around 40%.
This implies if you trade a house following a lead from Zillow, you hand them almost half of your income.
This arrangement is suitable for some agents. If you excel at finalizing contracts, it seems reasonable to only pay once you procure. But be aware, the fees are lofty. Hence, every agreement necessitates to be beneficial.
You utilize Zillow’s tools and leads but retain less capital each time you thrive.
Typical Cost Range for Zillow Leads
The cost of Zillow leads can vary a lot. It often depends on things like where you’re selling houses and how many other agents are using Zillow in the same area.
Average Cost Per Lead
Zillow leads can cost a real estate agent anywhere from $20 to $60. In places where lots of people want the same thing, prices might jump to between $450 and $500 for each person you talk to about buying or selling a house.
This big range in prices comes from how busy the market is and what kind of homes are being sold.
Real estate agents need to think hard about this investment. Spending money on leads means putting it into getting more people interested in houses. But, costs add up fast, especially in busy areas.
So, figuring out if it’s worth it depends on many things like competition and the types of homes an agent deals with.
Monthly Budget Estimates
Knowing the average cost per lead helps, but let’s talk money for your whole month. If you work in a small town or a place not many people know about, plan to spend between $300 and $500 on Zillow Premier Agent every month.
But if you’re in a big city, where lots of people want to live and buy homes, your budget needs to jump. Expect it to be $1,000 or more each month. This means thinking ahead about how much you’re ready to invest in finding new clients through Zillow.
Choosing the right budget also depends on what kind of houses you sell and who wants to buy them. Higher-priced homes might need a bigger investment because those buyers are harder to find.
So, use performance analytics from Zillow’s tools wisely—like CRM systems—to track what works best for your ads. These tools show how well your spending matches with getting high-quality leads that turn into real deals.
Pros of Investing in Zillow Leads
Investing in Zillow leads can make your profile more visible to people looking to buy or sell homes. This targeted way of finding clients can help grow your business fast.
Increased Visibility
Being seen more on Zillow, Trulia, and StreetEasy helps real estate agents a lot. This is because the Zillow Premier Agent program makes it easier for agents to show up in front of people looking to buy homes.
It’s like having a big sign in the busiest part of town; only this time, the busy part is online where thousands look at properties every day. With better visibility comes more chances to talk about property listings and build a strong reputation.
Agents get their professional bio pushed front and center. This means when someone is interested in a home, they see the agent’s face and info right away. It’s easy to do targeted marketing this way because you’re talking directly to folks already interested in buying or selling homes.
This program turns browsing into possible sales leads by putting agents’ names next to houses that catch buyers’ eyes. So, being visible here isn’t just good; it’s essential for growing business in competitive markets.
Targeted Lead Generation
Zillow gives real estate agents tools to find people who want to buy or sell homes. These tools help you talk directly to owners who are really interested in making a deal. You get leads that fit what you’re looking for thanks to Zillow Premier Agent‘s smart technology.
This tech includes things like customer relationship management (CRM) systems, which organize your leads, and analytics that show how well you’re doing.
This way of finding leads saves time and effort. Real estate agents can focus on talking to potential buyers and sellers instead of looking for them. With everything in one place—leads, tools to manage them, and ways to understand performance—you can grow your business smarter and faster.
Cons of Relying on Zillow Leads
Zillow leads might seem great, but they come with high costs. The market also affects how well these leads work for you.
High Costs
Paying for Zillow leads can hit your wallet hard, especially in busy cities. In places with lots of people and houses, you might spend over $1,000 every month just to get your name out there.
This big cost is because everyone wants the best spots on Zillow’s list. So, if you’re working in a big metro area, prepare to invest a lot of money upfront.
These high costs are tough for real estate agents who are just starting or don’t have much cash to spare. It makes it hard to stick with Zillow long enough to see good results from their investment.
Next up: “Market Dependency”.
Market Dependency
Real estate agents encounter significant obstacles with Zillow leads due to market fluctuations. If the housing market decelerates or too many agents pursue the same leads, expenses may rise.
This has the potential to affect the returns on your investment in these advertisements. It’s important to be prepared for this risk and be aware that your expenditure on Zillow may vary greatly depending on the temperature of the real estate market.
Agents also need to consider how recognizable their brand is in comparison to others on Zillow. If another agent in your vicinity invests more in ads or has superior reviews, they may attract more clicks and leads.
This indicates that you need to exert more effort not just to purchase leads but also to establish your brand’s reputation online. It’s akin to participating in a race where your pace depends not merely on your own swiftness, but also on the condition of the track and the other competitors.
Alternatives to Zillow Leads
If you’re looking for other ways to get leads, you’re in luck. There are options like Realtor.com, Facebook Ads, and local property sites that can also help.
Realtor.com
Realtor.com stands out as a solid option for real estate agents eager to find new leads without using Zillow. This platform offers a variety of pricing plans, making it easier for agents to choose what fits their budget best.
With its focus on effective lead generation strategies, Realtor.com helps in getting your name in front of potential clients faster and more efficiently.
Agents get access to various tools and features on Realtor.com that aid in turning interested people into actual clients. These tools are different from those offered by Zillow, providing an alternative way to manage and nurture leads.
For agents seeking options outside Zillow’s ecosystem, Realtor.com proves to be a reliable choice with its unique value proposition in the real estate advertising space.
Facebook Ads
Facebook Ads help real estate agents get their listings in front of the right people. With Facebook, you can target ads to people interested in buying or selling homes. This means your ad could show up on the news feeds of those looking for new homes.
You choose who sees your ads based on things like where they live or what they like.
Running Facebook Ads is a smart move for marketing strategies. You can decide how much to spend and only pay when someone clicks your ad. Plus, you can use pictures and videos to make your ads stand out.
It’s a user-friendly way to reach more people without spending a lot of money.
Local Real Estate Portals
Real estate agents have great tools at their fingertips. Local real estate portals, like Zurple, Market Leader, CINC, and zBuyer offer fresh ways to find leads. These websites help you reach out to people selling or buying houses in your area.
They use different methods than Zillow to get you in touch with potential clients.
Using these portals can boost your lead generation efforts. Make sure also to polish your personal website and stay active on social media. This way, you can attract more attention and increase your chances of finding new leads.
With these strategies, growing your real estate business becomes easier.
Bottom Line
Zillow leads vary in price, from $20 to even $500. This big range depends on where you are and how many other agents want the same leads. If you’re in a busy city, expect to pay more.
Agents can choose what fits their budget – from a few hundred to over a thousand dollars each month. Keep in mind, investing in Zillow might get your name out there but watch your spending closely.
It’s all about finding what works best for you without breaking the bank.
