The Dos and Don’ts of Skip Tracing Homeowners

Disclaimer: This article is meant for general information purposes only and should not be substituted for professional legal advice. PropStream recommends discussing questions regarding the legality of skip tracing with an attorney.

When it comes to finding clients, your existing network and referrals are a great place to start—but they can only take you so far. To discover valuable opportunities outside your immediate circle, you’ll need to add a new strategy to your arsenal: skip tracing. When leveraged properly, this approach can yield surprising deals and lifelong clients.

That said, navigating the laws and social expectations surrounding this step can be tricky. In this article, we’ll cover the dos and don’ts of skip tracing so real estate agents can find cold leads ethically and avoid costly mistakes.

What Is Skip Tracing in Real Estate?

Technically, “skip tracing” refers to locating people who are missing or especially difficult to find.

However, many real estate agents also use the term to mean the process of finding a homeowner’s contact information through public records or online databases. For the sake of clarity, we’ll use the latter definition in this article.

Is Skip Tracing Legal?

Yes, skip tracing is legal, but it’s a good idea to follow certain guidelines to ensure you’re acting within the law and not prematurely driving away leads. Let’s explore those guidelines more in-depth.

Do: Use Legal Skip Tracing Methods

Generally speaking, any information that’s publicly available is safe to use, such as:

Public records

Public records agents are allowed to access:

• Court filings
• Ownership transfer documents
• Business entity filings

Social media

Technically, it’s legal to use publicly available email addresses and phone numbers you find on social media. But be cautious in how you use them to avoid violating user agreements.

For example, LinkedIn prohibits you from using automated technology to gather contact information, as well as using that information to send unsolicited sales pitches.

Online databases

You can find vast online directories or databases, such as PropStream, that collect information legally. Typically, you need to pay a fee to access them.

Don’t: Obtain Personal Information Illegally

The law is fairly strict when it comes to accessing private information for marketing purposes, so avoid the following:

• Hacking into people’s private accounts
• Using private databases
• Misrepresenting yourself to obtain contact information or when reaching out to someone
• Accessing credit reports and other financial info without proper authorization

Do: Abide by CAN-SPAM Regulations

The CAN-SPAM Act regulates commercial emails to ensure people don’t receive messages they don’t want. According to the Federal Trade Commission, this means your email marketing should:

• Make it clear that your email is an ad
• Include an “unsubscribe” option for recipients in all marketing emails
• Remove people from your email list as soon as they opt out
• Represent yourself and your purpose accurately
• Include a valid postal address for your business, whether an office, your home, or a P.O. box

Not following these rules can result in steep fines of up to about $53,000 per email violation.

Don’t: Contact People on the Do Not Call Registry

The National Do Not Call (DNC) Registry is a list of people who have indicated they don’t want to receive telemarketing calls. Calling someone on the DNC Registry can result in fines of up to $53,000 per violation.

Agents can pay to access the DNC Registry to ensure they don’t call a homeowner on it. Some online databases, like PropStream, provide skip tracing with free DNC flags, allowing agents to avoid paying fees whenever they need to access a name on the registry.

Eleven states have their own Do Not Call lists, so it’s a good idea to check those as well when compiling homeowner contact information.

Do: Verify Contact Information

Few things are as frustrating as a stranger reaching out and calling you the wrong name—or giving you a sales pitch that doesn’t apply to you at all.

You can avoid this by taking time to verify that the contact information you have for a lead is correct before reaching out to them.

Since you’re looking for homeowners, this means fact-checking the home address first and, secondly, the lead’s name, phone number, and email address.

Don’t: Harass or Come Off as "Rude"

Once you have someone’s contact information, consider reaching out in a way that’s professional and courteous. As you discuss your services and expertise, avoid being too aggressive or belittling a homeowner’s property or marketing abilities. This can sour your relationship with them before they have a chance to see the value you can provide.

If a homeowner tells you they’re not interested, ask them if you can reach out again at a later date. If they say yes, you can add this person to your list of leads to nurture. However, if they say no, be sure to respect their decision.

Use PropStream to Skip Trace Homeowner Information

Robust real estate databases like PropStream can help you find up-to-date contact information in just a few clicks.

Pulling from multiple sources to cover 98% of U.S. adults, PropStream’s skip tracing services also include free DNC flags, including for federal and state DNC lists, government and attorney numbers, and more.