: Which Works Best?
Skip tracing and traditional lead generation are two different approaches real estate pros use to find potential clients. Here's what you need to know:
- Skip tracing: Tracks down hard-to-find property owners
- Traditional lead gen: Uses marketing to attract buyers and sellers
Quick comparison:
| Method | Speed | Cost | Accuracy | Personal Touch |
|---|---|---|---|---|
| Skip Tracing | Fast | Can be expensive | 70-80% match rate | Low |
| Traditional | Slower | Often cheaper | High when done right | High |
When to use each:
- Skip tracing: For finding elusive owners, quick results, targeting specific properties
- Traditional: Building relationships, local trust, generating referrals
Pro tip: Use both methods together for best results. Start with skip tracing to build a quick lead list, then follow up with traditional methods to build relationships.
Remember: Quality beats quantity. A few solid leads are better than a long list of outdated contacts. And always stay legal and ethical - the real estate industry is watching.
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What is Skip Tracing?
Skip tracing is a method to find hard-to-reach people or those who've "skipped town". In real estate, it's used to track down elusive property owners.
Definition and Purpose
It's a way for real estate pros to get contact info for property owners:
- Current addresses
- Phone numbers
- Email addresses
Why? To connect with owners of off-market properties, especially fixer-uppers.
Main Elements
Skip tracing involves:
1. Data collection
Gathering info from various sources.
2. Data analysis
Sorting through the collected data.
3. Contact attempts
Reaching out to the property owner.
Information Sources
Skip tracers use:
- Public records
- Social media profiles
- Online databases
- Credit reports
- Utility bills
Here's how these sources compare:
| Source | Pros | Cons |
|---|---|---|
| Public records | Free, widely available | Often outdated |
| Social media | Up-to-date, personal | Not universal |
| Online databases | Comprehensive, fast | Can be pricey |
| Credit reports | Accurate contact info | Legal restrictions |
| Utility bills | Current address info | Hard to access |
It's not just about finding a phone number. It's about building a complete picture of the owner.
"For experienced investors, the real value is when there is no phone and email. On the other hand, amateur investors who cannot easily find the owner are more likely to give up."
This quote shows why skip tracing is so powerful. It helps you find leads others miss.
But remember: always follow the rules when gathering info. Skip tracing must be done legally.
Common Lead Generation Methods
Real estate pros use various ways to find clients. Let's look at some common methods, where to find leads, and their ups and downs.
Common Approaches
- Referrals: Agents often rely on past clients' word-of-mouth.
- Direct Mail: Sending postcards or letters to specific neighborhoods.
- Online Marketing: Using websites, social media, and emails.
- Networking: Going to local events and building business relationships.
- Open Houses: Showing properties to attract potential buyers and sellers.
Where to Find Leads
Agents can find leads through:
- Local events and community involvement
- Social media (Facebook, LinkedIn, Instagram)
- Real estate websites (Zillow, Trulia, Realtor.com)
- Personal and professional networks
- Online and offline ads
Strengths and Weaknesses
Here's a quick look at the pros and cons:
| Method | Strengths | Weaknesses |
|---|---|---|
| Referrals | High-quality, low cost | Limited reach, slow growth |
| Direct Mail | Targeted, tangible | Can be pricey, low response |
| Online Marketing | Wide reach, cost-effective | Needs tech skills, competitive |
| Networking | Strong relationships | Time-consuming, limited scale |
| Open Houses | Face-to-face interaction | Time-intensive, unpredictable |
Agents often mix these methods. Keller Williams, for example, pushes its agents to use both online and offline strategies.
"In 2019, 41% of home buyers used a realtor referred by family, neighbors, or friends."
This shows how powerful referrals are. But relying ONLY on referrals can slow growth. That's why many agents use multiple methods.
Online marketing is huge now. In fact, 99% of home buyers aged 23-56 used the internet to find homes in 2021. This has led many agents to focus on their online presence.
Video marketing is a big opportunity. 73% of homeowners are more likely to list with an agent who offers to make a video. But only 4% of agents put listings on YouTube. Smart agents can take advantage of this gap.
Skip Tracing vs. Traditional Methods
Let's compare skip tracing to old-school lead generation in real estate:
Speed and Results
Skip tracing is FAST. Traditional methods? Not so much.
A real estate investor found contact details for 100 property owners in 2 hours using BatchSkipTracing. Compare that to 2 weeks of networking for just 10 potential leads.
Cost Breakdown
| Method | Cost Range | Cost per Lead |
|---|---|---|
| Skip Tracing | $0.10 - $2 per search | $0.50 - $5 |
| Direct Mail | $0.50 - $3 per piece | $20 - $100 |
| Online Ads | $100 - $1000 per month | $5 - $50 |
| Networking Events | $50 - $500 per event | $10 - $100 |
Skip tracing won't break the bank, especially if you're going big.
Data Quality
Skip tracing data? Fresh and accurate. Traditional methods? Often stale.
But here's the catch: your skip tracing tool matters. High-quality options like TLO or IDI can make a big difference.
Legal Stuff
Both methods have rules. Skip tracing needs to play nice with the Fair Credit Reporting Act (FCRA). Traditional methods? They've got their own hoops, like the Do Not Call list.
Privacy
Skip tracing can feel a bit... nosy. Traditional methods? Less so.
The key? Use skip tracing responsibly. Stick to public info and respect people's privacy.
Skip Tracing in Real Estate
Skip tracing is a key tool for real estate pros hunting down hard-to-find property owners. Here's how it's used:
Group Skip Tracing
Want to find multiple property owners at once? Group skip tracing is your answer. It's perfect for:
- Zeroing in on a neighborhood
- Tracking down owners of empty properties
- Finding landlords who don't live on-site
Take BatchSkipTracing. You can search up to 10,000 records in one go, paying $0.20 per hit. That's a lot faster (and cheaper) than searching one by one.
Single-Person Skip Tracing
Need the dirt on one specific owner? Single-person skip tracing is the way to go. It's great for:
- High-end properties
- Tricky ownership situations
- Properties about to foreclose
Tools like TLO or IDI can dig up:
- Current phone numbers
- Email addresses
- Social media accounts
- People they know
Mixing Skip Tracing with Property Data
Want to really up your game? Combine skip tracing with property data. Here's how:
- Find properties that fit your bill (like high equity or behind on taxes)
- Use skip tracing to get the owner's contact info
- Reach out with a targeted offer
PropertyRadar does this all in one. Their users say they get the right contact info 80% of the time.
"Good data begets good data." This sums up skip tracing in real estate perfectly.
Here's a quick look at some popular skip tracing tools:
| Tool | Cost per Record | Minimum Purchase |
|---|---|---|
| REsimpli | $0.15 | $99/month |
| PropStream | $0.12 | No minimum |
| BatchSkipTracing | $0.20 | No subscription |
| Skip Genie | $0.17 | $58/month (100 searches) |
Traditional Lead Generation in Real Estate
Skip tracing is cool, but let's not forget the old-school methods that still work wonders in real estate. Here are three that pack a punch:
Networking
It's all about who you know. NAR says 82% of agents get business through referrals. So, what should you do?
- Hit up local events
- Join industry groups
- Get involved in your community
Direct Mail
Snail mail isn't dead. In fact, it's kicking email's butt with a 5.1% response rate (compared to email's measly 0.6%). To make it work:
- Use targeted mailing lists
- Create eye-catching designs
- Include clear calls-to-action
Online Marketing
The internet is where it's at. A whopping 97% of home buyers used it in their 2020 home search. Focus on:
- SEO
- PPC ads
- Social media marketing
Here's a quick comparison:
| Method | Pros | Cons |
|---|---|---|
| Networking | Quality leads, personal touch | Time-consuming, limited reach |
| Direct Mail | Tangible, targeted | Pricier, potential low response |
| Online Marketing | Wide reach, measurable | Competitive, needs constant work |
Mix and match these methods to find what works for you. There's no one-size-fits-all in real estate lead gen.
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When to Use Each Method
Skip tracing and traditional lead generation both have their place in real estate. Here's when to use each:
Skip Tracing: Best Uses
Skip tracing works great for:
- Finding hard-to-reach property owners
- Uncovering off-market deals
- Locating motivated sellers
For instance, use skip tracing to find empty nesters looking to downsize before they list.
Traditional Methods: When to Use
Stick to traditional lead generation when:
- You already have contact info
- You're targeting a broad audience
- You're focused on relationship building
Combining Both Methods
Want to supercharge your lead generation? Here's how to mix skip tracing and traditional methods:
1. Start with skip tracing
Build a list of potential sellers, especially those hard to reach.
2. Follow up traditionally
Use your new contact info for direct mail or cold calling.
3. Refine your approach
Use data from both methods to target your marketing better.
| Method | When to Use | Example |
|---|---|---|
| Skip Tracing | Hard-to-find owners | Finding owners of abandoned properties |
| Traditional | Existing contacts | Networking at local real estate events |
| Combined | Complex campaigns | Multi-channel outreach to absentee owners |
Tools for Lead Generation
Real estate pros need the right tools to find leads. Let's look at skip tracing and traditional lead gen tools.
Skip Tracing Tools
Skip tracing helps you find hard-to-reach property owners. Here are some top picks:
| Tool | Features | Price |
|---|---|---|
| PropStream | 153M records, 120+ filters | $0.12/record |
| REsimpli | List stacking, 3 contacts | $99-$749/mo |
| DealMachine | Single traces, auto emails | $59-$299/mo |
| Skip Genie | Single/batch, relative tracing | $58/mo (100 searches) |
| BatchSkipTracing | Single and bulk searches | $0.20/result |
PropStream's big database and filters make it stand out. A user said: "DNC flagging keeps us compliant when reaching out to leads."
Traditional Lead Gen Tools
For classic methods, try these:
| Tool | Focus | Key Feature |
|---|---|---|
| Market Leader | Exclusive leads | Guaranteed monthly leads |
| Zurple | Auto responses | Personal follow-ups |
| Zillow Premier Agent | Direct buyer leads | Zillow platform leads |
| REDX | Various lead types | Pick-and-choose pricing |
Market Leader users like its exclusivity. An agent said: "Non-shared leads give us an edge in closing deals."
Choose based on your needs. Skip tracing is great for off-market properties, while traditional tools help build relationships with available contacts.
Legal and Ethical Issues
Skip tracing and lead generation in real estate? You've got to play by the rules. Here's what you need to know:
Data Laws: The Big Three
1. Telephone Consumer Protection Act (TCPA)
The FCC's watchdog for cold calling. It's the reason we have the National Do-Not-Call Registry.
2. Fair Credit Reporting Act (FCRA)
This one's all about how credit reporting agencies handle consumer info. Skip tracers, take note.
3. State Laws
Some states make skip tracers get licensed. Others limit what info you can collect. Know your local rules.
Staying on the Right Side of the Law
- Check the Do-Not-Call Registry. Every. Single. Time.
- Introduce yourself and why you're calling. No mystery callers here.
- If they're not interested, wrap it up. Don't be that guy.
- Get consent before you start digging.
- Lock down that personal data. Treat it like gold.
Ethical Data Use: More Than Just Following Rules
It's about respect. Here's how to do it right:
| Do This | Why It Matters |
|---|---|
| Be upfront | People appreciate honesty |
| Offer value | Give them a reason to listen |
| Respect privacy | No stalking or pretexting |
| Protect data | Keep their info safe |
| Play fair | Don't cause harm |
NAR members sign a code of ethics. It's all about fair play, keeping secrets, and knowing your stuff.
Bottom line: Follow the rules, treat people right, and you'll build trust while growing your business. It's that simple.
Effects on Real Estate Data
Skip tracing and traditional lead generation both impact how real estate pros handle data. Let's break it down:
Skip Tracing Benefits
Skip tracing gives you an edge in finding elusive property owners:
- It digs up current contact info, even for people who've moved
- Uncovers off-market properties
- Lets you focus on the most promising leads
For example: Property managers use skip tracing to find tenants who skipped out on rent. It helps recover money and keeps the books straight.
Traditional Method Benefits
Old-school methods still have their place:
- Networking events build lasting connections
- Marketing keeps your name out there
- Using multiple channels casts a wider net
Many agents mix online marketing with in-person networking to build a strong local presence.
Combining Both Approaches
Using skip tracing and traditional methods together? That's where the magic happens:
| Skip Tracing | Traditional Methods | Combined Impact |
|---|---|---|
| Find hard-to-reach owners | Build local relationships | Better lead list |
| Get current contact info | Create brand awareness | Higher-quality outreach |
| Uncover off-market deals | Diverse lead sources | More deals |
By using both, you're not just collecting data—you're getting the full picture.
Pro tip: Update your lead lists with skip-traced info, then use direct mail to reach out. Fresh data, effective outreach.
Future Changes
The lead generation landscape is evolving rapidly. Here's what's on the horizon:
AI and Machine Learning Take Center Stage
AI and machine learning are revolutionizing skip tracing:
- AI processes data at lightning speed
- Machine learning uncovers hidden data connections
- AI predicts locations based on past behavior
DealMachine, a real estate tech company, saw a 40% increase in first-try finds after implementing AI tools.
Blockchain for Safer Data
Blockchain is entering real estate data:
- Creates unbreakable property ownership records
- Speeds up transactions
- Reduces fraud risk
Mobile Apps Change the Game
Skip tracing is going mobile:
- Field agents can search on-the-go
- Data syncs instantly to phones
- Enables quick, informed decision-making
Privacy Laws Get Tougher
As skip tracing advances, so do regulations:
- EU's GDPR sets new data protection standards
- Clear consent needed for personal data use
- Hefty fines for rule-breakers (up to €20 million or 4% of global turnover under GDPR)
Traditional Methods Go High-Tech
Old-school lead gen is getting an upgrade:
- AI targets direct mail effectively
- Virtual events replace some in-person networking
- Algorithms optimize cold call timing
The Human Touch Stays Important
Despite tech advances, people still matter:
- Humans build trust and close deals
- Some issues need a personal touch
- Human creativity outshines computers (for now)
Real estate pros who blend tech tools with personal skills will thrive. The future of lead generation is about smart, ethical connections.
Wrap-up
Skip tracing and traditional lead generation both have their place in real estate. Here's when to use each:
Skip tracing is best for:
- Finding elusive property owners
- Quick results in competitive markets
- Targeting specific properties or owners
Traditional methods excel at:
- Building long-term relationships
- Establishing local trust
- Generating referrals
Here's a quick comparison:
| Aspect | Skip Tracing | Traditional Methods |
|---|---|---|
| Speed | Fast | Slower |
| Cost | Can be expensive | Often cheaper |
| Accuracy | 70-80% match rate | High when done right |
| Personal Touch | Low | High |
Use both methods strategically:
1. Start with skip tracing
Build a quick list of potential leads. PropertyRadar users report an 80% accuracy rate.
2. Follow up traditionally
Use networking, direct mail, or social media to build relationships.
3. Combine for better results
Find absentee owners with skip tracing, then reach out through traditional channels.
Focus on quality over quantity. A few solid leads beat a long list of outdated contacts.
Always stay legal and ethical. The real estate industry is keeping an eye on skip tracing, so use it responsibly.
FAQs
Is skip tracing effective?
Skip tracing can be a game-changer for real estate pros hunting down elusive property owners. Here's the scoop:
- It works. Pro services hit a 70-80% success rate in finding people.
- They've got the goods. Think specialized databases and next-level techniques.
- It'll cost you. Prices swing wildly, but PropStream charges $0.12 per hit.
- Perfect for finding:
- MIA landlords
- Owners of beat-up properties
- Tax dodgers
Ryan, a real estate investor, puts it this way:
"Professional skip-tracing services can offer a valuable solution if you've exhausted all available resources."
Pro tip: Shop around before you commit. Costs can snowball fast if you're searching in bulk.
