As we enter 2025, the real estate market is not easy, and will be a tough nut to crack for new or recently licensed agents. When there are a record low number of transactions out there, how do you find clients without spending a lot of money? Here are three top lead sources for newer agents on a budget, along with a bonus tip for those looking to expand their listing portfolio:

1. Sphere of Influence

Your sphere of influence (“SOI”) remains the most potent lead source for any real estate agent, new or experienced. Real estate is inherently a relationship-driven business, rooted in trust and personal connections. As a newer agent, activating your sphere of influence involves consistent communication and marketing that reminds them that they trust you personally and can now trust you professionally. The more you engage with your network through personalized outreach, community involvement, and regular updates, the more you solidify your reputation as the go-to real estate expert. This foundational strategy ensures a sustainable flow of referrals and repeat business, which is crucial for long-term success.

2. Social Media

In 2025, social media will continue to be a critical platform for growing your real estate business. Platforms like Instagram, Facebook, TikTok, and LinkedIn (which social media platform should I focus on?) offer unique opportunities to enhance your visibility, curate your new identity as a real estate agent, and engage with potential clients. By sharing valuable content, market insights, and personal stories, you can build a stronger connection with your audience. Social media allows you to extend your reach beyond your immediate SOI, attracting leads who appreciate your relatability and approach to real estate. Remember, success on social media grows at the speed of trust; the more authentic and helpful your content, the more likely you are to convert followers into clients.

3. Open Houses

Contrary to some opinions, open houses are making a strong comeback and can be an excellent way for new agents to generate leads. Hosting open houses allows you to meet potential buyers face-to-face, offering a direct opportunity to demonstrate your knowledge and customer service skills. According to the National Association of Realtors, approximately 4% of attendees at open houses meet their agent at an open house. Said another way, for every 25 parties that come into your open houses, one of them statistically will work with you to find their next home! This relatively high level of engagement makes open houses a cost-effective method for lead generation.

Bonus Lead Source: For Sale by Owner (FSBO)

If you’re new and looking to list more houses, FSBOs are a compelling opportunity. In a softening market (which we *should* see continue in 2025), owners attempting to sell their homes independently may become frustrated with the process and more receptive to professional assistance. Heads up! Approaching FSBOs requires tact and a strong ability to communicate your value. Educating sellers on the complexities of the market and how you can maximize their sale price can convert a FSBO into a grateful client. For many agents, successfully converting FSBOs has not only expanded their business but also added a rewarding element of challenge to their careers.