Have you heard of circle prospecting? It’s a very powerful strategy you can use to generate new real estate leads. While focusing on warm leads might be the best way to get new clients, circle prospecting is a very close second.
When you call a warm lead, it’s pretty easy. They already know who you are. Compared to a cold lead, this is a piece of cake. Circle prospecting isn’t far off, as you will be calling people around a new listing.
With circle prospecting, you won’t have to use a stale script since you will be delivering news to nearby homeowners. Yes, the contacts are cold, but the news is simple and might just warm them up quickly.
What is Circle Prospecting, Exactly?
The process known as circle prospecting is simply calling people close to a new listing. You will likely be calling to inform them the home will be going up for sale soon. It’s also common to invite them to an open house you have coming up at the property.
The goal of circle prospecting is to find new real estate leads. If other people in the neighborhood are looking to buy or sell a home, you will have your foot in the door already. This technique can help you grow your database and set more appointments.
Neighbors are Often Nosey
Even if circle prospecting doesn’t lead to a ton of new prospects immediately, it helps plant some seeds. You just landed a new listing in the neighborhood and it’s about to go on the market. You’ve scheduled an open house and it’s time to do some circle prospecting.
Many of the neighbors you speak with will be nosey. They will, at the very least, want to see the home of their neighbor. Getting them to attend the open house is pretty easy. Then, you can collect some information and add them to your list of prospects.
Top 3 Tips for Using Circle Prospecting
1. Keep Your Script Simple
A short and sweet message left at the phone number of the prospect will go a long way. When you use a short message, it can lead to a good percentage of callbacks from circle prospecting.
2. Consider Using a Ringless Voicemail Message App
This can be a very powerful tool when using circle prospecting. This type of app will deliver your voicemail directly into the recipient’s voicemail box without the phone actually ringing. They will get a message from you and can decide what to do with it from there.
3. Include the Renters
Some neighborhoods will have a mixture of homeowners and renters. Always make sure you include both. While renters cannot sell a home, unless they own one, they could be looking to buy. Including renters from apartment buildings and condos can lead to buyers for properties you already have listed or might list in the future.
You can even go as far as having a lender create a fact sheet to hand out. It can detail different scenarios for renters to show them how a specific home might fit into their renter’s budget.
How to Get the Numbers You Need When Circle Prospecting
One of the harder things with circle prospecting, at least if you don’t know the right contact, is getting the phone numbers of those in the neighborhoods. There are a few sources that can provide you with access to cell phone numbers, landlines, emails, and other contact information. Cole Realty Resource is one of the most well-known and Agent Circle Prospecting is another good choice. Both options can help you get the information you need to reach out to the neighbors of each new listing you take on. Be careful to respect numbers on do-not-disturb lists.
Does Circle Prospecting Work?
Yes, and it can work very well. If you have a great script for your message, you can get a good percentage of people to call you back within an hour or two of sending out the message. This can lead to more closed buyer deals and more listings.
Of course, if you use circle prospecting and you sell your new listing quickly, it can have a bigger impact. When neighbors see a home in their neighborhood sell fast and for a good price, it can entice them to want to sell, too.