How Real Estate Agents Can Prospect Leads
Real estate prospecting is the method to build your clientele base, and, with it, your business. But how to prospect in real estate in a proper and effective manner is more nuanced. Yes, real estate agents need to increase their reach to find new clients, but real estate agent prospecting isn’t quite that simple. This guide will outline real estate prospecting ideas and effective strategies you can use that pay off when prospecting real estate leads.
1. Choose a Real Estate Prospecting Tactic
The end goal of most marketing tactics is to encourage people to generate leads. When it comes to real estate prospecting, the agent should initiate the outreach. There are a myriad of ways to accomplish this, but we’ve narrowed it down to the best real estate prospecting ideas for you. Before we dive in, having an intimate knowledge of your local area is crucial to succeeding in these efforts. You should be fluent in the important data that defines your specific market. For example, you should know how long homes stay on the market and what potential clients can expect in the residential sector if that’s your primary focus as an agent. Additionally, research on the people you’re looking to bring to your business can pay off significantly as you get creative with your real estate agent prospecting. Try to be original and unique with how to prospect in real estate. After all, developing new leads is crucial to the survival of your business. Here are some real estate prospecting tactics to consider:
- For sale by owner (FSBO) properties are difficult to sell without an agent; consider cold calling local FSBO listings and pitching yourself as a solution to this problem.
- Consider cold calling your current network of clients as well.
- Use your intimate knowledge of the local market, and contact people who have expired listings.
- Perhaps the simplest avenue for real estate prospecting is to hold an open house - it may sound basic, but don’t rule out the fundamentals!
- If you have clients who appreciate what you have done for them in the past, reach out to see if they can refer you to any potential new clients.
- You see this real estate prospecting idea play out in your inbox on a daily basis, but remember to follow up with people - either via email or by giving them a call.
- Speaking of the web, email is one of the most effective real estate prospecting ideas, so utilize it as a touchpoint whenever possible.
- Become visible in your community by networking and volunteering.
If you want to develop your real estate clientele, volunteer with local groups that reflect your passions. Not only will you have the opportunity to serve your community, but you can also network with various stakeholders who may connect you with valuable clients.
2. Set Prospecting Goals
Now that you know the answer to the questions what is prospecting in real estate and how to prospect in real estate, and you’re familiar with key real estate prospecting ideas, you need to consider your goals. What are you looking to accomplish, and how can you best set yourself up for success?
An example of a real estate agent prospecting goal is gaining a specific number of new clients in a certain amount of time - for example, gaining twenty new clients in six months. Another possible goal might be to contact potential new customers in a three-month span. Both goals could be tied together, but they also achieve different outcomes. The first actually grows your clientele base, while the second goal allows you to find out what works during outreach. The latter goal also forces you to make time to prospect, though we’ll touch on that topic later.
Remember to make your real estate prospecting goals achievable. That’s not to say your goals can’t be lofty, but make sure that you can reach them. Also, set a deadline to hold yourself accountable. After that deadline passes, you can see if your goals need to be adjusted or added to, depending on their success rate. As you revisit your goals, ask yourself if this real estate prospecting is paying off in the form of a bigger client base that you can continue to develop and grow - and if your current methodology isn’t serving you, set new goals and try again.
Nothing speaks to the success of your goals or real estate prospecting ideas like data. Data will help you to determine if the real estate prospecting tactics you’re using are successful, especially when viewed through the lens of your local market’s metrics. We can’t hammer this point enough — knowing your market and knowing it well is the best real estate prospecting tip to grow your clientele. Local data and predictive analytics can even reveal who in the neighborhood is most likely to sell their property, allowing you to hone your real estate agent prospecting efforts accordingly. Clearly, accurate data is vital to your future success and the success of the industry as a whole. Empty numbers and outdated information don’t benefit anyone, so make sure the data you utilize is accurate, consistent, and up to date.
Utilize Real Estate Prospecting Tools
We’ve outlined some real estate prospecting ideas, goals, and data, but the tools you’ll use play a crucial role in this process, too. When it comes to real estate prospecting, you can use any or all of the following tools. The first that we recommend is a customer relationship management (CRM). This tool stores all of your customers’ contact information, including your previous interactions with them. CRMs are powerful, and all small businesses should consider using one, especially when it comes to real estate agent prospecting.
You can’t mention tools for real estate prospecting and not include the multiple listing service (MLS). This software allows real estate agents to search for listings from other members of the MLS. Beyond these two key pieces of technology, look into an email marketing platform like MailChimp to streamline your email marketing campaigns while keeping in touch with your base.
3. Schedule Time for Prospecting Daily
Make real estate prospecting a daily habit. Whether you’re actively farming potential clients or creating ways to do so, don’t go halfway when it comes to prospecting real estate leads. After all, these efforts are the future of your business, so give the process the attention it deserves and do it every day. As you analyze your real estate prospecting data, you’ll discover the optimal time to make phone calls and send emails, allowing you to get even better at prospecting real estate leads over time. Making this process a part of your daily routine is how to prospect in real estate.
4. Adhere to Legal Policies
Before you begin your real estate prospecting, check your local policies. Find out what legal parameters regarding cold calling are in place for your city, county, state, and country. For example, make sure you aren’t contacting people who are on no-call lists and avoid violating any privacy policies. Once you know what you’re allowed to do and who you can contact, get started on your real estate prospecting ideas and grow your business.