What’s the Difference Between Leads and Prospects in Real Estate?

By David Brough

From a young age, real estate captured David's interest, and that passion has remained throughout his life. Over the past 15 years as a Realtor.

Sales in real estate starts with understanding key terms that will be used frequently. One of the most important distinctions is between leads and prospects. Knowing the difference can help you in identifying the right opportunities and converting them into successful transactions.

Leads vs. prospects. A lead is someone who has expressed intent to buy or sell real estate. These individuals have shown interest and are more likely to move forward with a transaction. In contrast, a prospect is someone who may not yet have a clear intention to buy or sell but has the potential to become a lead. This could be someone reached through door-knocking, marketing efforts, or general networking.

A prospect becomes a lead after further qualification, typically through marketing or direct conversation. The goal is to identify the prospects who are most likely to take action and convert them into leads.

Turning leads into appointments. Success in sales depends on effectively turning leads into appointments. Instead of cold-calling random individuals, your efforts should be focused on those who have already demonstrated interest. Every lead has shown some desire or intent to buy or sell, making them valuable opportunities. By refining skills in lead conversion, setting appointments becomes a natural next step.

Mastering these basics is essential for building your foundation in real estate sales. Understanding the difference between leads and prospects and focusing on the right opportunities makes success in real estate sales much easier for you to achieve. If you have questions or need guidance, I am here to help. You can call me at 260-750-2818 or send an email to david@anthonyrealtors.com. I look forward to hearing from you.