Copyright @ 2020 Ascend Lead Sites LLC. All Rights Reserved
Real estate prospecting involves actively doing what needs to be done to generate new clients, including making phone calls. Rather than hoping for people to call you, most real estate agents realize they need to take the initiative. In addition to making phone calls, they reach out via texts, emails and go house to house knocking on doors prospecting in real estate.
Most newly licensed agents hate the concept of prospecting. Somewhere they’ve gotten the idea that approaching prospects is too awkward and too aggressive to get results. The truth is that it’s important that you learn how to prospect in real estate if you want to be successful. There is no doubt that this is the most productive way to generate fresh leads.
However, for real estate prospecting to work, agents must set aside time for this every day. This is a long-term investment, one that most new agents try to avoid.
If this sounds like you, here are some Realtor prospecting tips that will help you generate good leads. We’re also including advice from some of the world’s top producing residential and commercial agents:
Sending real estate prospecting letters is a great way to reach out to people because they accomplish a number of things. First, a letter can convey a lot more information than a text or postcard, giving you an opportunity to make a meaningful connection. For example, you can do a comparative market analysis (CMA) of a particular neighborhood to share with the residents who live there. Sending this info in a text or on a postcard wouldn’t be appropriate nor would you have enough space. This makes the prospecting letter the best method for something like this.
Second, sending a well-written prospecting letter is the perfect communication method for agents who want to “get their feet wet” before they begin working the phones. This way you can introduce yourself to people in the neighborhood with a friendly letter that will increase the odds of them being willing to speak with you on the phone at a later date.
Keep in mind that you will get better results if you create a balance between the types of things you send in the U.S. mail. In between sending letters you might also want to send postcards. We have a favorite place that supplies our real estate postcards, which is Corefact. They have all kinds of templates to choose from, so you can customize your postcards to convey the perfect message at just the right time.
Professionals who rely on past data to help them make decisions are very likely to succeed. This holds true for real estate agents who use data to guide their prospecting strategies. When you’re prospecting in real estate, it’s important that you carefully track your results. This is the only way you’re going to be able to tell which strategies work and which don’t. When you see that one strategy is more effective than others, focus on using that even if it’s out of your comfort zone.
For example, a friendly letter may be easy to write, but if it does nothing to help you reach your goals, what’s the point of sending it? Contrast that with the neighborhood yard sale you sponsored. It may have taken up a lot of your time, but you were able to do some meaningful in-person prospecting, which resulted in three new clients.
One of the most common gripes we get from new agents is about “bothering” people with phone calls or knocking on random doors. We totally understand – they don’t want to do something they perceive as “beneath” them.
However, the reality is that you’re in a position to provide residents in your community something of real value. This is how you should see yourself.
When you introduce yourself to neighbors who may be looking to buy or sell their home to let them know about the services you provide and your level of expertise, you’re doing them a favor. You’re informing them of the many options they have when it comes to real estate. Experienced agents are very familiar with clients telling them, “I didn’t have any idea it could be handled like this.”
A good way to start showing how valuable you are to your community would be to create neighborhood websites. Each one can act as a hub for that particular neighborhood with up-to-date information on the real estate activities in the area. Property owners can refer to your website when they want to find out what’s going on. This way you set yourself up as the “go to” authority figure in your community.
To see a good example of this, go to Parkbench. They specialize in creating neighborhood websites. They won’t allow more than one Realtor for each neighborhood. You can check whether your ZIP code has any available neighborhoods.
On a weekly basis your goals should be about putting in the work. Prospecting for buyers and sellers isn’t a matter of waiting around for your phone to ring. It’s up to you to make the calls necessary to nurture your prospects. Clearly, most of the people you reach aren’t ready to buy or sell right now, but you still have to keep going.
You cannot expect results overnight from prospecting, so don’t get discouraged. Set weekly goals for how many prospecting calls you’re going to make, how many texts you’ll send and how many doors you’ll knock on. Just keep prospecting according to the weekly goals you’ve set.
Set a longer-term six-month goal for how much business you’ll close.
For example, if you’re doing the amount of real estate prospecting that you should be, you can set your six-month goal at perhaps four closed sales. If the median sales price of the properties is $250,000, out of which you make a 3% commission, your gross commission income (GCI) will come out at $30,000. This isn’t bad at all for putting in that time prospecting!
Not too many years ago, prospecting for leads involved a tremendous amount of work. A lot of it was done through mailers and just trying to find the addresses, phone numbers and contact information for homeowners of expired listings was a huge pain.
Fortunately, these days there are affordable software programs that can do all of that and more. REDX is an incredible time saver because it does practically everything. With REDX you get all the info you need to hit the ground running on day one. In every way possible it makes your outreach more efficient. You get owner profiles on expired listings and for-sale-by-owner sellers, plus other leads in your locality.
Check out the REDX platform if you want to find out all that REDX is capable of doing to simplify the drudgery of real estate prospecting and save you time.
Another great prospecting idea for Realtors is to meet people in your community by honoring Memorial Day and the 4th of July with free American flags as a giveaway. You can also take the opportunity to give away pumpkins in October for Halloween, and wreaths in December for Christmas.
Some Realtors are comfortable knocking on doors when giving away these things. Others prefer to invite the public to come and meet them to pick up their gift on a particular date, time and place. Whichever way you decide to do this, each giveaway offers you a chance to meet people, get their contact info, and become known as the neighborhood real estate agent.
Connie Ly – BellevueAndSeattleHomes.com
It goes without saying that real estate prospecting is a whole lot easier once people get to know you as an experienced local Realtor. One way to establish yourself as such in the minds of residents is to create a dedicated website providing visitors with detailed information on buying or selling property in that locality. This website could also have a search tool for properties currently on the market and a way to contact you for specific details. This is how you set yourself up for in-depth conversations with locals who may ultimately become clients.
If you want a powerful lead generating website, you might want to check out Ascend Lead Sites. This is a company that specializes in creating amazing real estate websites, so they understand exactly what Realtors need to convert visitors into leads.
Ascend Lead Sites design beautiful, user-friendly websites. What makes this an even better deal is that you get an amazing real estate focused CRM.
Effective prospecting in real estate involves a lot more than sending mass mailers and cold calling. To get results you need to build relationships with people in the community who will either become buyers or sellers themselves or refer others to you. Social media can help you create opportunities for one-on-one prospecting, which can lead to building such relationships.
For example if you someone with a stroller, assume that this is a potential client who will soon need more space. Use this opportunity to engage in person. On social media for example like Instagram you notice women posting about being pregnant or having a new baby, see that as an opportunity to engage as well. If you have person experience offer advice and post it!
Anyone telling you how to prospect in real estate, or in any other sales profession, will explain the importance of consistency. To get tangible results you’re going to need to spend a lot more than a few minutes a day prospecting.
If you talk to most highly successful Realtors, they will tell you that they dedicate at least 90 minutes a day to doing nothing but prospecting. This comes to 7½ hours a week and if you do this week in and week out, you’ll reap the rewards. So, mark your calendar and see where you are in six months’ time.
If you’re having trouble getting started, identify a specific “farm” and focus on that neighborhood until you make some inroads. Then, you can move on from there.
One of the best prospecting ideas for Realtors is to make it part of your daily routine to call homeowners with expired listings. These people have already made the decision to sell their homes, but for some reason it didn’t sell during the listing term. Chances are they haven’t changed their minds about selling their home.
Either you’re going to grab that listing or another Realtor in your office will get the home relisted under their name before you make contact.
As soon as you find out that a listing has expired, you need to call the owner and see if you can find out why their home didn’t sell. Your goal is to establish a rapport while persuading them that you’re the Realtor who can get their property sold. Do not make the mistake of calling without fully researching that listing. You need to know the price the home was listed for and whether this was the correct price. How did the last agent market the house? What was the duration of the listing? Get all the facts first, so you can ask the right questions.
Plenty of other Realtors will be calling on expired listings as well, so you’ll need to be prepared with a great script if you hope to get these listings. We recommend that you check out 15 Most Effective Expired Listing Scripts
People trying to sell a home on their own make great prospects because it’s clear that they want to sell. But you need to use a completely different approach with FSBO owners than with owners whose listings have expired.
FSBO sellers have every confidence that they can sell their home themselves. In their mind they don’t need a Realtor, the MLS or any other real estate service to help them sell their home.
Or their entire motivation is to avoid paying the commissions.
You might think that someone with this mindset would be a “pretty hard nut to crack,” but that doesn’t necessarily bear out.
The truth is that over 91% of property sold in the U.S. is sold with the assistance of a Realtor. According to figures compiled by Realtor.com, the median sale price for FSBO homes is about $60,000 less than homes listed with Realtors. Records show that many FSBO sellers change their minds at some point and list their property with a real estate agent.
Baylor University conducted a study on cold calling in real estate. What they found is that it takes an agent an average of 209 calls to residents of their “farm” before they get an appointment or a referral.
For Realtors who fear rejection, the reality is that you’ll have to suffer through 208 people saying, “not interested” before you’ll speak to someone who will listen and finally say “yes.”
You have to brace yourself for hearing dozens and dozens of “noes” and know that with each one you are that much closer to hearing a “yes.” At this rate, if you make 418 calls a week, you’ll likely average two appointments a week.
When you’re prospecting in real estate, you’ll learn to not take all these “noes” personally. At some point they will just be another data point.
At the end of the day prospecting in real estate or in any other field is about building relationships. In real estate you will be working with buyers and sellers. These are your prospects and the best way to start building those relationships is by getting some face-to-face time.
Being able to look someone in the eye and shake their hand is a powerful experience. To be successful in real estate you must be able to get in-person meetings with decision makers. And if the decision makers change, you need to get in front of them too when prospecting.
People need to meet with you in person. For you to start building a relationship you need to create an opportunity for a face-to-face meeting, so you have something to build on to become their Realtor.
When prospecting for new clients, you aren’t taking advantage of the whole gamut of opportunities unless you utilize social media to its full potential. By advertising on social media, you can target who sees your content.
With YouTube Ads Realtors can run video ads targeted to their specific geographic “farm.” We discovered that by making video testimonials of past clients we could run those as YouTube Ads and successfully increase our brand awareness inside our specific farm.
YouTube has targeting features, which you can use to limit your audience to just homeowners as well as people who are getting ready to buy a home. We have found YouTube Ads to be very affordable. They only cost 3 to 5 cents per viewing and we can target them to only be seen by qualified potential clients.
We know that social media can be used effectively for real estate prospecting, but you need to know how best to use it. Kuno Creative conducted a study that showed that Facebook business pages with fewer than 500,000 followers will have very little impact. If you are in this category, only 6% of your page’s organic followers will read what you post and far fewer will engage with it.
But those stats don’t mean you can’t effectively prospect on Facebook.
Do you use an effective real estate prospecting method that we’ve failed to mention? If so, we’d love to hear all about it in the comments section below. Let’s keep brainstorming real estate prospecting ideas!
Copyright @ 2020 Ascend Lead Sites LLC. All Rights Reserved