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The real estate market has exploded in the last two years, but that doesn’t mean that clients are going to automatically flock to your doors or that this advantageous market will continue for years to come. Prospecting has always been important in the real estate business, and there’s no indication that this is going to change any time soon.
Real estate prospecting is the practice of finding new clients who are looking to buy or sell a property. Prospecting involves taking active steps to grow your business by seeking out specific clients. Every real estate professional has their own favorite real estate prospecting methods. Tiffany Miller, a real estate broker at Miller Realty in Geneva, Ohio, and former director of the Ashtabula (Ohio) County Board of Realtors, uses a variety of ways to prospect for new clients, although she identifies word of mouth from satisfied clients as her favorite.
The most important goal of good real estate prospecting is to build relationships with prospects so that they will turn to you whenever they are ready to buy or sell property. But remember: You don’t always know when that need is going to occur, so it’s important not to narrow your prospecting so much that you reach only people who may have already established a relationship with a real estate professional. If your only goal is to increase short – term sales, then you’re likely going to miss out on future sales opportunities.
Here are some goals to set for yourself as you work on becoming a real estate prospecting guru:
While prospecting and marketing are similar, they are two distinct activities. Marketing involves making the public aware that you are a real estate professional and explaining the services you offer. Prospecting is more personal and involves asking specific individuals for their business and building a relationship with them.
For example, having a banner out at a trade show with your name, photo, and contact information is marketing. Greeting people at your booth, talking with them about their real estate needs, and getting their contact information is prospecting.
Before you begin your prospecting, it’s important to determine which people you are seeking. To do that, ask yourself the following five questions.
Real estate prospecting isn’t just about making sure that your new listings are advertised in the newspaper and on social media. It’s about building relationships with people who need your services now or in the not-so-distant future. It’s important to remember that, as a real estate professional, you are providing a valuable service. Few homeowners or prospective homeowners are well equipped to navigate this tricky market alone.
Below are five good ways to find new clients and build your real estate business.
Admittedly, letter writing is “old school,” but this method of prospecting still has many benefits.
Pros: Getting a personal letter is rare these days, so yours is likely to stand out. Compare this to the multiple email messages the average person receives daily. A letter also lasts longer than most email or text messages and can be referred to by the prospect next week, next month, or next year. Finding a year – old text message isn’t that easy.
Cons: Your letter may languish on a prospective client’s desk or kitchen table for weeks and may never be read.
Tip: One of our favorite real estate prospecting tips is to make sure to personalize your letters by using prospects’ names in the salutation and referencing their cities or neighborhoods in the body of the letter. It’s also a good idea to hand – sign your prospecting letters to give them an authentic, genuine feel. You can find good real estate prospecting letter samples and templates online at The Close and at fitsmallbusiness.com.
Cold calling is the time – honored practice of picking up the phone and calling people you don’t know or barely know to offer your services.
Pros: Cold calling connects you with people you might never come in contact with otherwise.
Cons: Some people won’t be available, and some will let the call automatically go to their voicemail. And be prepared for some who may even react with annoyance.
Tip: We think it sometimes makes sense to buy prospecting lists from a third party. This way you already have a well – vetted list of people in a certain prospecting category, such as newly married couples or people who have just moved into the area.
Social media isn’t just about posting new listings; it’s another way to forge new relationships. Says Claudine O’Rourke, a New York City real estate expert, “When I see a baby bump or a stroller, I know there’s a potential client who needs more space! So not only do I engage in any way I can in person, but I engage on Instagram with those in my sphere who are posting about being a new mom. As a mom myself, I can relate. Instead of offering mommy advice, I offer NYC real estate advice. #nycmoms.”
Pros: Prospecting using social media, done well, can reach a broad range of potential clients. It’s also available 24/7, so you can do your prospecting during the hours when you can’t show homes.
Cons: Facebook has nearly 3 billion active users. This means the competition for your prospect’s attention is intense.
Tip: Use tested real estate prospecting scripts for your messages so you stay consistent with your marketing and you know that your words are going to get results. Need ideas for scripts? Some good online resources include The Close and theredx.com.
One of the best real estate prospecting ideas is to let your satisfied customers connect you with new leads. Miller says that she always asks her clients to recommend her to others if they’ve been happy working with her. She makes sure that she stays top of mind by checking in with them periodically with messages on Facebook and LinkedIn, remembering their birthdays with an e-card or direct mail piece, and greeting them warmly when she runs into them in town.
“Networking is easy in a small town”, says Miller. “Your clients are in church, in the grocery store checkout line, and watching their kids compete in soccer games. It’s just a matter of being personable and accessible.”
Pros: Networking is free and takes little of your time.
Cons: You lose a degree of control of your message since it’s being delivered by others.
Tip: Offer an incentive to your clients, such as a gift card to a local coffee shop, for recommending a new client to you.
If you’re wondering how to get leads in real estate, especially in a niche or geographic area that’s new to you, try event marketing. As the name implies, event marketing involves renting a booth or table at an event and talking with attendees. The event might be anything from a bridal fair to a local Chamber of Commerce event. Not all events are costly. While bridal events may cost several hundred dollars, a Chamber event may be less than $50 for its members.
Pros: You’ll meet a lot of people.
Cons: Many of the people you meet may have little interest in buying or selling a home.
Tip: Host a giveaway where attendees fill out an entry form, ask whether they’d be interested in learning more about buying or selling their home, and then use that contact information, with their permission, to follow up with them after the event.
Technology can be a big help when it comes to real estate prospecting. Below are a few of our favorite tech tools that make it easy to connect with prospective clients.
There are several apps that help make real estate prospecting easier. Some of our experts’ favorites include these:
Software can also help you keep all of your listings, clients, and pending closings sorted so none of the details fall through the cracks. The experts we spoke with particularly liked these:
Real estate prospecting doesn’t have to be difficult, but it needs to be consistent. Choose your favorite three methods and make prospecting a regular part of your job – just remember as you’re prospecting to closely follow the NAR Code of Ethics. If you never stop prospecting, you’ll never run out of clients.
Image courtesy of istock.com/anyaberkut
Last updated on Jul 24, 2024.
Originally published on Jul 07, 2022.
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