Real Estate Facebook Ads: Ultimate Guide

Are you an agent looking to boost your listing’s visibility and attract leads? Then you might want to learn that Real Estate Facebook Ads are a powerful way to expand your reach and gain a competitive edge.

As an agent, part of your job is reaching your target audience to attract potential buyers. Not only it’s how you’ll generate income, but it’s also a way to expand your network.

If you’ve been in the real estate game for a while, you know that your network is one of your greatest assets.

That’s because a good network in real estate will secure systematic leads time and time again.

So are you leveraging the full potential of Facebook ads for your real estate strategy? If not, you’re missing out on high-paying leads and a solid network.

In this guide, we will explore the benefits of real estate Facebook ads, their costs, and how they bring in leads. We’ll also show you how to create ad campaigns and provide you with some real-life examples for inspiration.

Ready to boost your visibility through real estate Facebook ads? Let’s dive in!

What Are Real Estate Facebook Ads and Why Are They Important?

As of today, Facebook (now Meta) has nearly three billion users. Moreover, that number is increasing, and the outlook for future prospects is fairly positive.

In today’s competitive real estate market, standing out is crucial. Real estate Facebook ads work effectively to capture the attention of potential clients. Hence, 90% of realtors use them to promote their businesses.

Using real estate Facebook ads can help you in many ways. You can:

  • reach a wider audience and grow your exposure.
  • effectively advertise your services.
  • advertise properties to the right audience and close sales.
  • build social proof with testimonials and sold listings.
  • generate more leads that end up becoming potential buyers.

All in all, ads on Facebook provide agents with a cost-effective method to promote their real estate offerings. Learning how to harness this tool as a realtor is no longer discretionary.

Thus, it’s safe to say that real estate Facebook ads are an integral part of a digital marketing strategy.

The first step is to create a Facebook business page to brand yourself. Afterward, you can showcase properties, share updates, and engage with your audience. When the time is right, you can use ads to boost your exposure and reach.

So, how much do they cost? Let’s see!

How Much Does It Cost to Run Real Estate Facebook Ads?

Real estate Facebook ads benefits

Facebook uses a bidding system for its ads. This means the cost is determined by how much advertisers are willing to pay to reach their audience. Thus, you should consider starting with a small ad budget to test the campaign.

Real estate Facebook ads don’t have an absolute price. The costs vary depending on many factors, including your ad’s relevance.

If your ads are catchy and have great visuals combined with the right captions, Facebook will know about it. The best part? They’ll also be cheaper for you to run!

Price of a Real Estate Facebook Ad

The price of Facebook advertising can be seen in one of two ways:

  1. Determine the amount you wish to spend on the campaign.
  2. Decide on the amount you are willing to pay per result.

You can also access various tools and settings when setting up a Facebook ad campaign.

Thus, you can manage your ad budget according to your needs:

  • For example, if you have a budget of $500 for real estate ads, you can choose how to split the amount into different directions. This way, you spend a given dollar amount for your real estate ad campaign but can’t control the results.
  • However, if you want to pay for a given result, there are different ways to set up your campaign. Still, Facebook doesn’t guarantee that you’ll reach that exact result.

Thus, when planning the budget for Real estate Facebook ads, you should consider various factors. Some of these include ad spend, target market, and ad placement.

A/B testing is an essential component of successful campaigns. A/B testing implies comparing different ad variations to see which one performs best. Learning how to run A/B tests effectively helps optimize the ads, maximize reach, and minimize costs.

Once you’ve identified which version generates better results, you can start budgeting for a fully optimized campaign.

How Do Facebook Ads Bring in Leads for Real Estate Agents?

Facebook uses different pricing models in online advertising. Each model serves a distinct purpose, depending on the advertiser’s goals.

Here are the four main ad models Facebook uses to run campaigns:

CPM (Cost Per Thousand Impressions)

Advertisers pay for every thousand times their ad is shown, regardless of user interaction.

This model is suitable for raising brand awareness or promoting a specific message. The average CPM for real estate ads on Facebook is currently $12.43. However, this price can fluctuate based on market conditions.

Real estate facebook ads: CPM

CPL (Cost Per Lead)

This pricing model charges advertisers for each lead generated from their ads.

It is typically used when the goal is to collect user information (e.g., email addresses or phone numbers). This type of data is later on being used to enhance future marketing efforts.

In your case, you could use this type of ad to collect contact information for your next cold call list.

The average CPL for ads on Facebook is $9.29 (as of March 2023). However, this cost too largely depends on the industry competition.

Cost Per Lead- Real estate Facebook Ads

CPA (Cost Per Action)

In this model, advertisers pay for specific actions taken by users. Some examples of actions include purchasing, signing up for a service, or filling out a form.

The CPA cost varies depending on the desired action and the effectiveness of the ad campaign.

The CPA ad model can be categorized in:

  • CPE (Cost per Engagement): Where you are charged based on the user’s activity in terms of likes, comments, shares, etc. The average price for this type of ad is $0.091.
  • CPI (Cost Per Install): You’re charged based on the number of installs/ purchases users have made. The average price for this type of ad is $1.99.
Real Estate facebook Ads - CPA

CPC (Cost Per Click)

This approach charges advertisers for each click on their ads.

It’s commonly used when the main objective is to drive traffic to a website or landing page. The average CPC for real estate facebook ads is $0.978, but it varies based on industry, region, and other factors.

How To Advertise Your Offerings with Real Estate Facebook Ads?

Advertising your services and listings on Facebook is a powerful way to reach potential clients and grow your business.

Statistics show that 47% of buyers search online before contacting an agent. Many of those people use social media for their searches. The primary channels to find such information belong to Meta Platforms (Facebook and Instagram).

To put it differently, by using real estate Facebook ads, you can increase return on investment (ROI). Some agents report grossing out as much as $50,000 in net profits after investing $2500 in real estate Facebook ads. That’s a 20x ROI–a staggering number!

If you too want to leverage real estate Facebook ads, check out these five essential steps:

1. Choose Your Target Audience In a Specific Niche Market

Ad targeting allows you to reach potential clients and grow your real estate business effectively.

You know what they say: Jack of all trades, master of none.” This saying just goes to show how important ad targeting really is.

All in all, choosing the right target audience in a niche market is crucial. To succeed in a market, you need to size down and focus on a specific group.

Demographic targeting allows you to focus on a particular set of clients. This way, you can intensify your efforts and target resources more effectively.

7 Types of Target Audiences:

As a real estate agent, consider the following categories of audiences:

  • First-time home buyers. Focus on young professionals, newlyweds, or families searching for their first home.
  • Homeowners & Sellers. These people are looking for a way to get the best price for their house and sell their property for various reasons.
  • Investors. Individuals or companies interested in purchasing properties to rent out or hold onto for an extended period of time to generate income.
  • Downsizers. Reach out to retirees or empty nesters who may be seeking smaller, more manageable homes.
  • Luxury market. Attract high-income clients interested in upscale properties or vacation homes.
  • Relocators: Focus on people moving to a new city or state for work or personal reasons.
  • Local residents. Target individuals already living in the area who may be looking to upgrade, downsize, or change neighborhoods.

Fortunately, Facebook has a user-friendly ad format. You’ll be able to choose your audience based on certain factors and target them.

Though, If you want to keep your costs low and spark real engagement, you will need valuable ads. Facebook ads made of high-quality visuals and professional ad copy perform best.

Instead of hiring expensive graphic designers, try some FREE real estate ad templates and boost your visibility on day one!

2. Choose Your Ad Campaign Objective

Once you know your target audience, it’s time to think about ways of reaching them. Additionally, it’s important to assess where you are in the sales funnel and what is your campaign objective. This way, you can draw a strategy accordingly.

Choosing the right ad campaign objective on Facebook is essential for real estate agents to achieve their goals.

Consider these objectives based on your needs:

  • Awareness. Increase your brand visibility with a branding ad. Focus on showcasing your real estate services and unique selling points. This type of ad works well if you want to increase your website traffic, for example.
  • Traffic. Drive more visitors to your website or property listings with ad targeting. Use engaging images and headlines to attract clicks.
  • Engagement. Boost interaction on your Facebook posts by promoting content that resonates with your audience. Encourage comments, likes, and shares.
  • Leads. Generate buyer or seller leads through lead-generation ads. Offer valuable content, like a free home valuation or a property search tool, in exchange for contact information.
  • Sales. Retargeting ads can help close deals by reminding potential clients of listings they’ve previously viewed or expressed interest in.

Carefully select your Facebook ad objective to maximize the impact of your ad campaigns. Additionally, you should always optimize your posts to reflect what your audience network wants to see.

Real Estate Facebook Ads- Objectives

3. Set a Budget and a Time For Your Real Estate Facebook Ads

Setting a budget and timeframe for your Real estate Facebook ads is vital. Unfortunately, this step is often overlooked. Many real estate agents think they can simply jump on Facebook and boost whatever feels right.

The first step you should take is simple: don’t be like one of those agents.

If you really want to stand out from the competition and maximize your ad budget, follow these steps:

  1. Assess your marketing mix. Consider your total budget, including other advertising channels apart from Facebook. Determine the portion of your overall marketing budget allocated to Facebook ads.
  2. Define goals. Set clear objectives for your real estate advertising (E.g. lead generation or increase brand awareness).
  3. Estimate costs associated with your goals. Calculate the average cost to reach your real estate marketing needs. Calculate how much it costs to acquire a lead, increase traffic, or other traditional marketing assets. Use Facebook ads manager to try out different ad examples and set a realistic budget.
  4. Test and adjust. Start with a smaller budget to test your ads’ effectiveness. Optimize your campaigns and gradually increase your spending.
  5. Set a timeframe. Choose an appropriate duration for your campaigns. Consider factors like seasonality or the urgency of specific listings.
  6. Create a Facebook calendar. Schedule your ads and organic posts on your Facebook business page to maintain a consistent presence.

Real estate agents can effectively manage their Facebook ads by setting a well-planned budget and timeframe. In return, you’ll generate real estate leads and achieve advertising goals.

4. Decide on The Type of Facebook Ad You’re Going to Run

Deciding on the type of Facebook ad to run is crucial for successful real estate marketing. Different ads have different effects on your audience. Thus, knowing how and when to mix your ad set is part of any winning strategy.

Here are five popular ad formats to consider:

1. Carousel Ads

Use the carousel ad format to showcase multiple properties or different features of a single property. Carousel ads can generate leads by providing more information and engaging visuals.

real estate facebook ads - Carousel posts

2. Single-image Ads

Create eye-catching, single-image ads highlighting your listings or promoting an event. You can use this ad to promote an open house, a sold listing, or your personal brand. These ads are simple yet impactful, capturing the audience’s attention.

3. Video Ad

Try creating a reel or a short video to showcase a property or present yourself to your audience. You could also try to film yourself talking about topics of interest. Some of these include market predictions or tips and tricks for anyone interested in real estate.

4. Facebook Marketplace Ads

Advertise your properties directly on Facebook Marketplace. This way, you can reach potential clients actively searching for real estate listings.

Undeniably, this targeted approach can drive more leads. You can use both carousel ads or single post ads here.

real estate facebook ads - Facebook marketplace

5. Story Ads

Leverage Facebook Stories to create an immersive, full-screen video ad or image. Showcase your properties or services when people scroll to see what everyone has been up to.

Story ads can boost engagement and increase brand visibility.

6. Messenger Ads

Engage directly with potential clients through a Messenger ad. These ads can initiate conversations, answer questions, and generate leads. Thus, they provide a personalized experience and boost responsiveness.

Nevertheless, by selecting the right ad type based on your objectives and target audience, you will create compelling ad sets.

Now that you know which ad sets serve your purpose, you can effectively showcase properties and services.

If you’re struggling with the creative side, try our customizable templates for realtors, and have your first ad ready in minutes!

5. Monitor Your KPIs

Monitoring key performance indicators (KPIs) is essential for evaluating the effectiveness of Facebook ads. Aligning KPIs with campaign objectives allows for accurate measurement of success.

Still, KPI tracking can be a tricky process. Essentially, it all comes down to what you were looking to get out of your real estate advertising in the first place.

Every ad campaign should have clear goals (lead generation, engagement, brand awareness, etc.). Without a doubt, only if you have milestones and objectives for each Facebook Ad can you measure your performance.

Consequently, this allows for cutting costs where performance is low and optimizing where needed.

Choose relevant metrics

To select relevant KPIs, choose metrics that align with your campaign objectives.

  • To increase engagement, monitor comments, saves, and shares.
  • To enhance brand awareness, track website traffic and CPM reach.
  • To obtain contact information, keep track of the number of Facebook users who fill out your forms (CPAs).
  • For lead ads, monitor the number of leads collected, cost per lead, and lead conversion rates.
  • If you want to close on warm leads (people who’ve previously shown interest in your offerings), consider using retargeting ads.

And so on…

One way to optimize ads and see what works best is to use Facebook Insights. This is an analytics tool for your Facebook business page that monitors ad performance. It can track audience demographics, engagement, reach, and other metrics.

One key aspect to look for is which ad format performs best. Analyze the performance of each Facebook ad to build the most effective real estate ad campaigns.

Then, adjust and optimize. Regularly review your KPIs and make adjustments to your Facebook business advertising strategy.

By closely monitoring KPIs and adjusting campaigns, you can maximize ROI and achieve your goals.

Create a Follow-Up Plan for Your Leads and Close Deals

Now that you know how to create and track ads effectively, you need a follow-up plan.

Essentially, every Facebook ad works to promote your listings and real estate services. Whether you’re looking to generate leads or convert old ones, the sales funnel ends in you closing deals. Thus, ads will play a massive part in this process.

Still, if you want to capture leads, you’ll need more than just real estate advertising.

For example, you could create landing pages that capture those Facebook leads. Make it worthwhile for users by offering valuable content, such as an ebook or market report.

Then, you must encourage real estate clients to provide their email addresses or phone number to access the information.

Once you have collected contact information, organize your leads. Afterward, you can split them based on their interests, preferences, and readiness to act. This will allow for more personalized follow-ups.

It’s essential to reach out to your leads promptly after they’ve engaged with your Facebook ads. Doing so will increase the likelihood of conversion.

Finally, remember to be patient and allow time for your leads to move through the sales funnel. Facebook ads often deliver high ROI, but success always takes time.

Creating Your Facebook Ads with Ankita Mankotia

If you haven’t tried Facebook ads because you thought you would need to hire an expensive agency to create the graphics, think again! You can create ads like the ones shown before, starting from a template.

Elevate your efforts with compelling visuals and actionable words. 

Create your Real Estate Facebook Ads with Ankita Mankotia