Questions to Ask Before You Commit to a Real Estate Lead Source

Why ask questions before you say yes?

A lead source can be a paid service, a brokerage program, a team or a referral network. Each one has a cost, even when the lead itself looks free. The cost may be money, time, or legal risk if you contact people without permission.

Asking before you commit protects your budget and your license. It also keeps you from building a plan around a source you later cannot use.

Where did the contact information come from?

Ask the source to explain, in plain words, how a person ends up in front of you. Did they fill out a form on a site? Did they call? Did someone buy a list? You want a specific answer, not a general promise.

• What did the person see and click before their details were shared?
• Does the form mention you, your brokerage or a group of agents?
• How recent is each lead when it reaches you?
• Can you see a sample of the form or page the person used?

What permission came with the contact?

The FTC explains two ways a seller can contact someone who is on the National Do Not Call Registry. The first is an established business relationship. The FTC says a consumer inquiry or application creates one for 3 months from the date of the inquiry, and a purchase or other transaction creates one for 18 months from the last payment, transaction or shipment. The second is written agreement. The FTC says the consumer must sign an agreement that includes the number to be called, and an electronic signature is valid if the agreement is made online.

Ask which of these applies and how it is recorded. If the source cannot show you, treat the lead as one you may not be able to call.

Do you have to check the Do Not Call Registry?

The FTC says sellers must sync their call lists with the Registry at least every 31 days. The FTC also says registrations never expire, and sales calls can take up to 31 days to stop after a person registers.

Ask whether the source scrubs leads against the Registry, how often, and whether you are expected to do your own check. Ask your broker how the brokerage handles compliance. Whoever is responsible, your name is on the call.

What about recorded messages and automated calls?

The FTC says robocalls that sell something are illegal without the consumer’s direct written permission, whether or not the number is on the Registry. If a lead program includes automated dialing or recorded messages, ask exactly how permission is collected. Do not assume the source has handled it.

Who else gets the same lead?

Some sources send one person to several agents. Others send one person to one agent. Neither is automatically bad, but you need to know which you are buying. Our guide on where leads come from explains the common models.

What does it cost, and when?

Write down every cost before you start: fees up front, fees per lead, fees only when a deal closes, extra charges for software or tools, and what you owe if you leave. Ask whether the cost changes as you grow. Do not rely on a verbal summary.

Then check that you can afford the time to follow up. A source you cannot work well costs money without producing conversations. Use the follow-up schedule to estimate your weekly time.

How can you test a source before you rely on it?

Start small if the source lets you. Track every lead from the day it arrives: how fast you responded, whether the person answered, whether the contact details were correct, and whether any conversation moved forward. Review the notes after a few weeks with your broker or a mentor.

Judge the source on what you can verify. A lead that cannot be reached, or that never asked to hear from you, tells you something about the source. Write it down so you can compare it with the next option instead of relying on memory.

Can you leave, and what happens to leads you already have?

Ask what happens to open leads and pending work if you move brokerages or stop using the source. Ask who keeps the contact record. Put the answer in your agreement, not in a chat message.

What red flags should make you pause?

These answers are reasons to slow down.

• The source will not say where the leads come from.
• The pitch promises results or guarantees closings.
• They tell you permission is not your concern.
• Terms are only available after you pay.
• You are pressured to decide today.

How The Bauer Group fits

The Bauer Group is a Frisco brokerage welcoming licensed DFW agents. Opportunities are earned, not guaranteed. If you want to compare how different brokerages handle leads, you can start the conversation on the join page and bring this list.

Education only, not legal, tax or financial advice. Confirm telemarketing rules with the FTC and ask your broker or an attorney how they apply to you.