Skip tracing is a method used in real estate to locate potential customers or property owners who may be interested in selling or entering the market. In simpler terms, it involves gathering detailed information about people, particularly property owners, to create opportunities for real estate deals. This can be valuable for real estate agents, investors, and even wholesalers who want to connect with individuals before they even consider selling their properties.
Those involved in the real estate profession often keep detailed information about stakeholders, such as property owners, buyers, or potential sellers. This information might include property preferences, contact details, property types, pricing preferences, and other personal data. By having this insider knowledge, real estate professionals can establish stronger relationships with potential clients, making it easier to persuade them to engage in property transactions.
However, not all property owners are eager to sell. Some may be hesitant to join the market, particularly because of common misconceptions about real estate being risky or fraudulent. That’s where skip tracing can be helpful—it allows real estate professionals to build a connection with these potential sellers and introduce the idea of selling their property even before they consider it.
Why Is Skip Tracing Used in Real Estate?
Skip tracing is most commonly used by professionals in real estate for a variety of reasons, including:
- Lead Generation
Skip tracing helps real estate agents, investors, and wholesalers find potential leads who may not be actively looking to sell their property but could be persuaded to do so. By locating these individuals and making a strong offer, professionals can gain access to valuable properties before they hit the market. - Building Relationships
Real estate is all about relationships. Skip tracing helps professionals gather useful information about property owners, which can help them establish a rapport with these individuals. By understanding their needs and preferences, agents can offer personalized services, making it more likely for the owner to trust them and eventually sell. - Access to Hidden Opportunities
Some property owners might not be actively marketing their property, either due to lack of interest or not knowing its value. Skip tracing helps uncover these opportunities, providing real estate professionals with access to properties that might otherwise be missed.
Is Skip Tracing Legal?
Yes, skip tracing is legal in many countries, as long as it’s done without violating any laws. The key to legal skip tracing is to ensure that the methods used to gather information are ethical and within the bounds of the law.
If coercion, force, or illegal access to private information is used, then it becomes unlawful. For example, using hacking techniques, stealing private documents, or intimidating someone for information is illegal and can result in serious consequences like charges for trespassing, harassment, or defamation.
It’s also important to be cautious when using social media and other online tools. While it’s legal to gather publicly available information, using deceptive methods to access someone’s personal details can lead to charges for cyber crimes.
How to Perform Skip Tracing in Real Estate?
There are two main ways to perform skip tracing:
- Do It Yourself
You can skip tracing on your own by developing strong public relations and researching available information through public databases, social media platforms, and other online resources. This method requires strong communication skills, persistence, and knowledge of where to look for relevant data. - Hire a Professional Skip Tracer
Many real estate agents and investors choose to hire professionals who specialize in skip tracing. These experts often have access to specialized tools and software that make it easier to locate and gather information about potential sellers. Professional skip tracers often use private referrals or specialized databases to collect accurate data.
In today’s digital world, the internet offers several tools and techniques to help with skip tracing. Real estate professionals can use a variety of software programs to locate property owners, assess their willingness to sell, and gather useful information about their assets.
Tools and Techniques for Skip Tracing
Several tools are available for real estate professionals looking to perform skip tracing efficiently.
Here are some of the most commonly used tools:
- PropStream
PropStream is a popular tool for real estate investors. It provides valuable data on property owners and their financial situations. It can even estimate the cost of renovations for a specific property. PropStream also offers a “Do Not Call” list, which helps users avoid contacting federal employees or others who have opted out of marketing calls. - Skip Genie
Skip Genie is another well-known skip tracing tool used by real estate professionals. It focuses on providing brief, up-to-date data that is easy to understand. The software also offers guidance on investment opportunities, helping users identify properties listed under a single owner. - REISkip
REISkip uses advanced technology to locate property owners who are likely to sell. By combining information from various sources, it ensures the data is current and reliable. REISkip is owned by Max Maxwell, a well-known real estate investor, and is favored for its accuracy. - Property Shark
PropertyShark is a comprehensive tool that provides detailed information about properties and their owners. It also highlights external factors that may affect property value, such as landfills, unpaved roads, or water pollution in the area, helping buyers make informed decisions. - Mojo Skip Tracer
Mojo Skip Tracer is an affordable, easy-to-use tool that connects users with potential property owners. It updates its data regularly and offers a personal guide to assist users in finding the right deals. The app is mobile-friendly, though it may not be available in all countries. - Batch Skip Tracing
Batch Leads, a tool created by a real estate company, offers skip tracing services at an affordable price. Users pay per search and receive both old and new data on properties and their owners. It’s a great option for small-scale real estate investors. - Reonomy
Reonomy is a skip tracing tool designed for large-scale commercial real estate. It’s particularly useful for finding Limited Liability Company (LLC) owners and properties that are part of bigger business deals. Reonomy allows users to filter their searches to find exactly what they’re looking for. - IDI Data
IDI Data is one of the most advanced and expensive skip tracing tools on the market. It’s commonly used by intelligence agencies and private investigators due to its encrypted, high-quality data. This tool is ideal for real estate professionals looking for detailed information on high-value properties.
Conclusion
Skip tracing is a valuable tool in real estate that allows professionals to find potential sellers, build relationships, and create opportunities for real estate deals. Whether you’re a real estate agent, investor, or wholesaler, skip tracing can help you uncover hidden opportunities and gain a competitive edge in the market.
By using the right tools and techniques, real estate professionals can efficiently gather data, approach property owners, and secure deals before others even know these opportunities exist. From simple online tools to advanced skip tracing software like IDI Data, there’s a wide range of options to help professionals get the information they need.
In summary, skip tracing is more than just locating potential sellers—it’s about creating meaningful connections and offering solutions to property owners, often before they even realize they want to sell. With the right approach, skip tracing can be a powerful strategy for growing a successful real estate business.
