Real Estate Prospecting: How to Find Quality Leads and Get More Sales
The process of prospecting is an essential tool for real estate agents to discover potential clients. It resembles the gold prospecting of the California Gold Rush era, where individuals would search for gold by panning for it, and similarly, agents search for clients who could eventually become valuable customers. A single successful call can lead to a sale, making prospecting a crucial task. Fortunately, prospecting can be done from anywhere and at any time without the need for extensive travel. If you want to learn how to prospect in real estate, discover potential clients, and generate more leads, take a look at our tips.
What is prospecting in real estate?
When it comes to real estate, prospecting refers to the act of contacting potential leads through various communication methods such as phone, mail, or text. During this process, you may provide information that is pertinent to a potential client, particularly in regards to their real estate interests or property value. Essentially, prospecting is akin to a business scavenger hunt where you actively seek out potential prospects to add to your pipeline.
How do you prospect in real estate?
Merely stating that you are a real estate agent is insufficient. You must also showcase your expertise in the market and demonstrate what sets you apart from other agents. If you lack experience in prospecting, it may be helpful to use a script and rehearse with others before launching. Additionally, beginning with a smaller circle of contacts can help to build your confidence.
Create goals
To begin, establish a realistic objective. It is unlikely that you will be able to contact a thousand people every week, and such an approach could potentially lead to a negative experience for both parties involved. Instead, consider dedicating a specific amount of time each day to write emails, make phone calls, or send text messages to potential clients. Many professionals allocate between 60 to 90 minutes each day towards prospecting, and it is vital to hold oneself responsible for adhering to this routine. Alternatively, you can tailor your focus towards the amount of business generated within a certain timeframe, or the number of deals successfully secured, depending on your personal business goals.
Be active
Too often, real estate agents can lose out on opportunities by not being active on their communication channels. So depending on what methods you use, check them often and consistently.
People often look to the internet to see who is active on their social media, so if you use it and haven’t posted lately, a simple business update or a picture of a recent listing will do.
Be consistent
Abandoning your prospecting journey or being sporadic about it won’t help you find new leads. Dedicating consistent time and effort to prospecting in real estate will grab more opportunities for you. It’s very much a numbers game.
Ways to prospect
1. Circle prospecting
The technique of circle prospecting is centered around a particular area and is particularly effective for locating potential clients in a specific market or establishing credibility within a community. This approach often entails sharing information about a recently sold property with nearby residents, who are frequently interested in property values and the worth of surrounding homes. It is akin to being a neighbor who shares information about the adjacent property, but with the added ability to assist in buying or selling a home.
2. Cold calling
Cold calling can be intimidating and time-consuming if not approached the right way.
If you have phone anxiety, start off with a text. In a round-up list of cold calling statistics, HubSpot notes the most successful cold calls included “we” statements, asking how the prospect has been, and keeping the conversation going for at least five minutes.
3. Volunteer at your brokerage
If you’re part of one, spend some time on the floor at your brokerage. It’s possible to gain valuable insights into what your community is looking for in a real estate agent or their dream home. It’s also a great way for people to come directly to you.
4. Target expired, for sale by owner, or foreclosed listings
It is advisable to monitor the property listings that remain unsold for a long time or do not receive any offers. Typically, foreclosed homes, expired listings, and properties being sold by their owners tend to stay on the market for a while. Some homeowners who struggle to sell their properties may be perplexed about the reasons behind their failure. As an expert, you can offer them a solution to their problem.
5. Follow up with referrals
Whether you snagged some from a recent open house or your website, always follow up with any referrals you get. A quick text or email will do, though a phone call checking up on them can also leave a positive impression, especially if you show interest in their personal lives.
You can also reach out to former clients to ask if they know of anyone interested. Remind them that you are always happy to take their referrals.
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