CoStar just lost billions of dollars on its push into residential real estate.
Let me repeat that: billions.
We’re talking about roughly $5 billion invested in residential real estate over five years. About $3 billion of that was tied directly to the U.S. marketplace.
What did that investment produce? In 2024, they made $60 million in revenue (million with an m), and in 2025, they made $80 million in revenue.
If you isolate the U.S. numbers, that’s about a $2.86 billion loss. Globally, it’s closer to a $4.86 billion loss.
Now, CoStar is still a $26 billion company with a dominant commercial real estate business. They’ve been around for nearly 40 years. They can afford to test. They can afford to miss.
Most agents can’t.
And that’s where the lesson is.
Because while the Homes.com bet didn’t pay off (at least not yet), CoStar did one thing right that a lot of agents get wrong:
They didn’t abandon what was already working.
That’s exactly how you should be building your business in 2026.
The Biggest Mistake Agents Make When They Start Growing
This is where I see agents get themselves into trouble, and it happens more often than people want to admit.
An agent gets traction with something that works. Online leads start converting. Open houses start producing. The phone starts ringing.
Then, instead of protecting that momentum, they decide it’s time to do something completely different. They say:
- “I want to be a luxury listing agent now.”
- “I’m going to stop working online leads.”
- “I’m done with open houses.”
- “I’m going to do something totally different.”
And they abandon the exact thing that built their business. They stop working the thing that built the pipeline and convince themselves the next idea will carry the business forward.
That’s a mistake.
You don’t stop doing what works. You add to it.
Because when you stop your lead generation, your pipeline dries up. When your pipeline dries up, you’re looking at a minimum 90-day cycle to get momentum back.
And, unlike CoStar, most agents don’t have a $26 billion cushion to fall back on.
The Magic Number for Lead Generation
If you want a simple framework that actually works, the magic number is three.
You don’t need ten lead sources. You don’t need to chase every new strategy. You need three solid lead pillars that you work consistently. I’ve talked to plenty of agents who’ve made hundreds of thousands of dollars doing exactly that.
Here’s a simple way to think about it:
Lead Pillar #1: Whatever Is Already Working
Start here.
If you’re converting online leads well, keep doing that. If open houses are producing, keep doing that. If you dominate on the phone, keep doing that.
Instead of stopping when you add something new, make sure you systemize what is already working. Put it in your calendar, track the results and put it on repeat. This becomes your foundation.
Lead Pillar #2: Your Sphere (If It’s Not Already #1)
If your sphere of influence is not one of your top lead sources, it needs to be.
Why?
Because it’s the easiest business to convert.
About 65% of sellers choose their agent based on proximity—someone they know, someone referred to them, someone in their network.
That’s your unfair advantage.
Your sphere includes:
- Past clients
- Friends
- Family
- Social media connections
- Local relationships
Again, you don’t need to overcomplicate it, but you do need a system you can repeat.
Lead Pillar #3: Add One More (But Add It in Parallel)
Once you have one or two pillars working consistently, add a third.
But here’s the key: Do not stop doing what’s working to test something new.Make it a parallel addition. Meaning, you add while maintaining your other lead pillars.
When you add something new, define:
- Daily activities (i.e., 10 conversations per day)
- Weekly targets (3 appointments per week)
- Monthly KPIs (1 deal per month)
And most importantly, pick one. Not five. Not ten. One.
Your 2026 Growth Plan (Simple Version)
If you want to grow this year, here’s the play:
- Identify your top lead pillar. Double down. Systemize it.
- Add your sphere (if it’s not already there). Build consistent communication.
- Add one more pillar. Online leads, open houses, prospecting—pick one.
- Track KPIs. Daily conversations. Weekly appointments. Monthly closings.
- Stay consistent for 12 months. That’s how real growth happens.
Remember, growth comes from adding with discipline, not resetting your business every time something new catches your attention.
