Prospecting for real estate agents is a valuable tool for finding new leads. Much like the gold prospecting that motivated people during the California Gold Rush, you’re “panning” for people who could be quality clients down the road. After all, it just takes one good call to turn into a sale.
Thankfully, traveling across the country is not necessary for this type of prospecting since it can be done anywhere at any time. Want to learn how to prospect, find prospects in real estate, and get more leads? Check out our tips on how to get started.
What is prospecting in real estate?
Prospecting in real estate means reaching out to potential leads, often by phone, mail, text, and other forms of communication.
You’ll often share information relevant to a potential client, especially related to their property value or other real estate interests.
Think of it as a scavenger hunt for your business. You’re on the hunt for possible “prospects” (leads) to have for your pipeline.
How do you prospect in real estate?
It’s much more than simply telling someone you’re a real estate agent. It also means presenting yourself as a market expert. What can you offer a potential client? How do you do it better than every other real estate agent on the market?
If you’ve never prospected before, try using a script and practicing with others before starting. You can also start small and within your circle until you build up your confidence.
Create goals and a plan
Start with a reasonable goal. No, you’re probably not going to be able to call 1,000 people per week (and that would be a terrible experience for everyone involved). But how about setting aside a certain amount of time per day to write letters, text, or call prospects?
Many agents will set aside anywhere from 60 to 90 minutes a day to prospect. Hold yourself accountable and do it first thing, or it may be tempting to skip a day.
If time isn’t your main goal, you can focus on how much business you gain during a period or how many deals you close. It’s customizable to 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.
Remain 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 in real estate
1. Circle prospecting
Circle prospecting involves focusing on a specific location. This is especially useful for finding clients in a desired niche or building trust in a community.
Circle prospecting often involves informing people about a recently sold property to those who live nearby. Many people are concerned about their property value and key information about what the homes around them are worth. It’s like you’re one of their neighbors gossiping about the home next door, except you have the facts and the power to help them sell or buy their next 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
Keep your eye on listings that seem to never have any offers on the table or spend a great deal of time on the market.
Often, foreclosures, expired listings, and those for sale by owner listings are slow to move.
Many people who are unsuccessful at selling their homes may wonder what they are doing wrong. You can step in as the expert with the solution to their woes.
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 and ask if they know of anyone interested in buying or selling a home. Remind them that you are always happy to take their referrals.
You do the prospecting; we’ll take the photos
Virtuance saves your limited time and resources by snapping real estate pictures worthy of the highest praise. Capture more eyes on your listings by hiring one of our real estate photographers to take professional real estate photography for you, so you can spend more time prospecting.
FAQ
Prospecting is a method for finding new leads by consistently communicating with potential leads and always finding new opportunities for connections. You can prospect over the phone, online, or in person.
Start with people you know and then expand to acquaintances. You may also obtain lists of people to call, text, or mail.
No matter how you do it, the key is to stick to a method and do it consistently.
