Direct Mail Leads Converting to Listings

Why don’t we use direct mail leads to obtain real estate buyers like we do sellers?

Every day, REALTORS who are interested in converting renters into buyers ask for our assistance with direct mail postcards.  While we’re happy to assist them, we don’t recommend that our real estate clients utilize postcards or other direct mail for this purpose.


Direct mail leads that are sellers are easier to obtain. Direct mail is a far more effective strategy for obtaining listing leads. However, if you are interested in attracting buyers, there are other lead-generating strategies that dramatically outperform direct mail.

One of the most effective strategies for finding buyers is online marketing. For example, you can set up an IDX-based website, preferably one with “forced signup,” so that users have to provide you with their contact information to view properties. You can also pay money for leads.

Services like Zillow Premier Agent are considered top-notch lead generators, especially for buyers. The price per lead can fluctuate widely depending on your market, but even in the long run, purchasing buyer leads will produce a greater ROI than direct mail postcards.

Click Here to Get Started and Sign Up for a Free Wise Pelican Account (No Credit Card Required)!

The Most Important Reasons Why Direct Mail for Buyers Doesn’t Work

 There are two key reasons why a direct mail campaign isn’t effective for obtaining buyers from renters.

1. It’s Difficult to Target the Demographics

People rent properties for various reasons, and those reasons can vary depending on the type of region they live in. For example, renters near a major university are completely unpredictable about where they will buy their first home, and the property owner isn’t likely to receive any direct mail, either. Sometimes, people just prefer renting, so it makes sense to spend your budget on direct mail postcards to people who already own homes, which brings us to our second key reason.

Building on this notion, the second key reason centers on homeowners’ stability and engagement. Homeowners are typically deeply integrated into their communities, presenting them as a dependable audience for direct mail campaigns focused on real estate services, refinancing options, or enhancements to their homes. In contrast to renters, who might be temporary or less committed to their current residences, homeowners generally show more interest in offerings that could increase the value of their properties.

Marketing efforts targeting homeowners can lead to more substantial returns on investment. This group usually has a higher disposable income and is better positioned to interact with the services offered in direct mail pieces. By deliberately focusing on this population, REALTORS can fine-tune their marketing expenditures to improve conversion rates and drive a more effective direct mail campaign.

A deep understanding of rental market dynamics and the distinct behaviors of various consumer groups can greatly improve the efficacy of direct mail marketing strategies. Tailoring these campaigns to meet the specific needs and preferences of homeowners allows companies to deliver their message more effectively and engage their audience.


2. Using direct mail leads targeting renters

  1. Educational Content: Providing information on the benefits of homeownership, such as building equity and tax advantages. For instance, mailers could include a simple breakdown of how monthly mortgage payments compare to renting, illustrating the long-term financial benefits of buying a home.
  2. First-Time Homebuyer Programs: Highlighting available assistance programs for first-time buyers, such as down payment assistance or subsidized loans. This can help address the common barrier of saving for a down payment, making the idea of purchasing more accessible.
  3. Testimonials and Success Stories: Including stories of former renters who successfully transitioned to homeownership. These real-life examples can inspire confidence and show potential homebuyers that their goal is achievable.
  4. Step-by-Step Guides: These guides offer a roadmap to buying a home, covering essential steps like pre-approval for a mortgage, searching for homes, and understanding the closing process. They help demystify the process and empower renters with knowledge.
  5. Financial Planning Tips: Providing tips on budgeting and saving for a home. Direct mail pieces could offer advice on financial habits that enable renters to save for a down payment, such as reducing discretionary spending or using automatic savings plans.

When targeting listings, the strategy is more straightforward.  The desire to sell their home has already been established by the prospective client, so it’s just a matter of positioning yourself as the best REALTOR for the job.

direct mail leads
direct mail leads

3. Financial Constraints

Financial constraints are a significant barrier when targeting renters in direct mail campaigns to encourage home buying. Many renters face challenges in saving for a down payment, which is typically a fundamental requirement for purchasing a home.

The upfront costs associated with buying a house, including the down payment, closing costs, and other fees, can be daunting for individuals who may already be allocating a significant portion of their income toward rent and other expenses.

The ongoing financial commitments of homeownership, such as mortgage payments, property taxes, insurance, and maintenance costs, can be intimidating for renters who are accustomed to the relatively fixed costs of renting.

Even if renters are financially capable of purchasing a home, the perceived risk of potential future expenses and uncertainties may deter them from taking the leap into homeownership. Direct mail campaigns targeting renters must address these financial concerns head-on by providing clear and transparent information about the costs and benefits of homeownership. They must also offer resources and assistance to help renters overcome financial barriers, such as down payment assistance programs or financing options tailored to first-time homebuyers.

While renters may need assistance and guidance in navigating the financial aspects of homeownership, homeowners may be more receptive to messages that emphasize leveraging their existing equity to make a move or upgrade to a new home.

Have you used direct mail leads for buyers? Share in the comments

Have you used direct mail leads when it comes to buyers? What have your results been?

Click Here to Get Started and Sign Up for a Free Wise Pelican Account (No Credit Card Required)!

Our Latest Blogs

Becoming a Part-Time Real Estate Agent

Becoming a Part-Time Real Estate Agent

Would you prefer to watch a video on becoming a part-time real estate agent? We have included our ...

Ready To Get Started?

Lorem ipsum dolor sit amet, consetetur sadipscing elitr, sed diam nonumy eirmod tempor invidunt ut

Sign Up For Free

Wise Pelican is completely free to sign up and start designing. No commitment!
Sign Up For Free

Customize Template

Customize hundreds of templates with your name, image and brand.
Customize Template

Start Mailing!

Just 89¢ each, including printing, posting, and mailing. Prints and mails in just days.
Start Mailing