Cold calling in real estate can be a bit controversial, but it's a powerful way to generate leads, find prospects, and close deals. However, it's not easy, especially when you may need to talk, email, or meet with a potential client about ten times before finalizing the deal. To make your real estate cold calling plan work and up your game, you need some tips and, more importantly, scripts to guide your conversations.
You might have questions like where can you get your hands on these real estate cold-calling scripts? Which ones actually work? Maybe you're also wondering about the top real estate follow-up scripts. And how do you talk to prospects when you first reach out? Oh, and can your phone help you find leads in this industry?
Spoiler alert: We've got some fantastic real estate cold-calling tips and scripts that can really boost your business.
A real estate cold call is how real estate agents hunt for new clients—basically, they make calls to promote their services. Usually, they don't know the people they're calling. When someone picks up, real estate agents swiftly say who they are and check if the person on the other end might be interested in their services.
Absolutely, cold calling is a solid strategy in real estate. If you plan your approach and scripts smartly, you can attract prospects willing to engage with you. According to research from The Keller Centre, cold calls get answered about 28% of the time, but there's no fixed conversion percentage—it depends on the time and effort you put into those calls.
In a competitive industry like real estate, agents need to go the extra mile. Converting a prospect into a client usually takes more than just one call. Actively participating in conversations is key to sparking your business.
However, cold calling alone won't cut it; you need to market your strategy. Success in cold calling involves many factors, but that's a whole topic by itself. So, to answer the question: yes, cold calling works, but it's crucial to do it right.
Rather than worrying about effectiveness, focus on setting goals, like securing a meeting with the client. Cold calling is a way to connect with prospects, preparing you for any questions or situations during the conversation. It's not a guarantee that prospects will convert unless you persuade and convince them. So, instead of wondering if it's effective, assess your abilities, prepare well, and navigate the conversation skillfully.
Real estate agents turn to cold calling to find fresh leads, connect with potential home buyers or sellers, and set up meetings with interested clients. In just a short chat, a real estate agent can turn a total stranger into a paying customer. Cold calls also provide the basic info needed to create a list of interested clients, giving you the chance to build a connection down the road.
Here are a few perks of using cold calling in real estate:
1. Spotting Local Opportunities
Thanks to area codes, real estate agents can easily find nearby customers looking for guidance in the local real estate scene.
2. Budget-Friendly Approach
Cold calling is a cost-effective way to reach out to a wide range of potential clients and quickly build a professional relationship.
3. Perfecting Your Sales Pitch
With cold calls, you get to practice your real estate pitch and gather feedback from a diverse audience, helping you fine-tune your sales techniques.
To make your cold calls work in real estate, it's crucial to know what makes them successful. A good cold call should quickly give the person a reason to listen to you and want to talk more. When you're gearing up for a cold call, keep these key things in mind for a successful pitch:
1. Friendly Vibes: Put on a positive tone and be sociable. Build a connection with the person you're talking to so they're interested in what you have to say.
2. Clear Info: Make sure the person knows who you are and where they can find more about your real estate services.
3. Your Goal: Be clear about what you want from the call. Whether it's setting up a meeting or sending them more info, let them know what you're aiming for.
4. Solutions: Explain how your real estate services can make their life better. Talk about your knowledge of the area or how you can connect them with potential homebuyers.
Here's a simple guide to help you make a cold call and promote your real estate services:
1. Build Your Prospecting Database: Collect numbers for cold calls by setting up a sign-up sheet on your website, checking real estate listings, or reaching out to your personal network.
2. Work on Your Opening Statement: Create a short pitch introducing yourself, where you work, and the services you provide.
3. Get Your Questions Ready: Engage the caller by asking questions about their home. Have a variety of questions ready for different situations.
4. Roleplay Different Scenarios: Imagine how people might respond to your pitch and think about how you'd handle objections. Practice with a friend to make your script feel natural.
5. Time Your Calls Right: Make your calls in the evening when more people are likely to be home and available to answer the phone.
6. Give Them Some Alternative Contact Options: Reduce the chance of rejection by offering options, like suggesting an in-person meeting or follow-up through email.
7. Let the Conversation Flow: If a natural conversation starts, go with it. Building rapport, even if it's not directly about real estate, can be valuable later.
8. Make Sure You Are Motivated: Some callers might hang up or say no. Stay positive and see each new number as a fresh opportunity.
Before making those cold calls, do your homework. Don't just dial without a plan. Even finding out your prospect's name can make a big difference. There are free tools out there that can help you figure out how leads are named in contact lists. Also, have a good idea why you're calling - are they selling, looking for a house, or do they have specific needs? Knowing this info helps you dive straight into what matters to them and grabs their attention.
Expired listings are a goldmine for any real estate agent. Firstly, they're not cold prospects—they're homeowners with a clear need to sell, who've already tried but got frustrated. Reach out and show them why you're different from their past agents and how your real estate services can address their concerns.
What's more, expired listings provide valuable info about the lead. Details like the house's location, price, and how long it's been on the market can inspire great sales pitches and offers.
Get your sales agents to run through their sales pitches with you. As a seasoned real estate pro, you've got the experience to anticipate objections and know the kinds of buyers you might encounter. Use these practice sessions to simulate tricky situations and potential call scenarios. It helps your agents spot any flaws in their pitches and understand how to handle challenging customers during a call. Keep the training a bit intense — the more pressure they feel in practice, the better prepared they'll be for the real deal.
When a potential client asks about your commission, play it cool. Say something like, "Let's go over all the details in person." You can share general price ranges to give them an idea, but don't dive into negotiations on the first call. Your focus should be on understanding their problems and needs, not immediately making a sale. Demonstrating your genuine concern and willingness to help creates a better impression. Save the money talk for later unless the client insists on discussing it upfront.
Closing a deal on your very first call is more about luck than skill. The real estate pros who really nail it are the ones who ace the follow-up game.
In your initial chat, focus on two things:
1. Figuring out if there's a shot at turning this stranger into a potential client.
2. Pinning down when they're available for your next call.
The timing and method of your follow-up should match what works best for your prospect. If they prefer emails, shift to that. The key is to keep things easy for them as you work on winning them over.
When you're making that first call to introduce yourself, keep it simple and friendly. For example:
"Good morning! I'm Justin, a real estate expert at Sterling One. Is now a good time for a quick chat?"
These few lines make it easy for the other person. You acknowledge that you might be catching them at a busy moment and leave room for a quick response. The idea is not to push for a meeting right away but to figure out if they're at all interested in what you're offering. If it's a clear "no," no worries—just take them off your list. If there's no objection but it's not the best time, ask when would be better for them.
Perfect for: When you're just testing the waters and want to gauge the prospect's interest.
If you're not selling office space, the people you talk to probably want to buy or sell property for themselves. So, if you call them during work hours, they might not have time for a long chat.
If you're looking for properties to list, you can say something like:
"Hey, it's Shawn from Sterling One. I've got a bunch of buyers looking for a home in Palo Alto, California. Noticed you're there according to Yellowbook. Any chance you're thinking about selling your place now or in the next couple of years?"
And if you're on the hunt for buyers, you could use:
"Hello, Shawn from Sterling One here. I'm a real estate agent working in California. Quick question – are you interested in buying a house in the city?"
These scripts keep it short, taking up about 35-40 seconds of your prospect's time. If they're in a busy office, they can easily say "no, thanks" or ask you to call them later.
Best for: Cold calling between 9 AM-5 PM on weekdays.
Let's say there's an area you really like, and you know homes there go like hotcakes. You might want to try this script:
"Hey, it's Charlie from Sterling One. I just closed a deal in your neighborhood and thought you might be curious about what your home could fetch in today's market."
If they're interested, you can go on with...
"Similar properties are going for around $XXX,XXX. Plus, I've got a bunch of eager buyers looking for a place in the area. Your place, given its condition, could easily snag a premium price. Ever thought about selling?"
If they're on board, you can then talk about setting up a time to chat more.
Best for: If you've got a track record selling homes in that area and can prove it, this script helps you make a compelling case.
When the seller wants to talk about your commission on the phone, getting them and the buyer to agree is important for landing a new client. But it's better to wait until you've seen the property. What if the person really wants to talk about how much things cost when you're on the phone with them? Politely acknowledge their terms without fully agreeing. For example:
"Thanks, Selena. I've noted that you're looking at a maximum of 5% for closing the sale. When's a good time for me to check out the property? How about Monday at 5 PM?"
This way, you're showing you heard them without committing just yet. It lets you:
1. Negotiate the commission if you spot issues during the live preview.
2. Keep the conversation going. Rejecting 5% outright over the phone could be a deal-breaker. Meeting face-to-face lets you make a connection. If you impress, they might be more open to discussing rates.
Best if you're sure you can justify your rate after seeing the property.
If you find properties that were listed but didn't sell, they can be great opportunities. Reach out to the homeowners and offer your assistance.
"Hi Tina, it's John from Sterling One. Noticed your house listing expired a couple of months back. If you're still thinking about selling, I'm here to help.
I've got a track record selling houses in your area. It usually takes me X to find a buyer, and I can handle all the paperwork, making things easier for you. Would you be up for a meeting to chat more about it?"
This works well when listings have recently expired. Of course, if you're running low on leads, you can check out all unsold properties and get in touch with the owners. But your chances are better if the listing expired a few weeks or months ago. You can use a similar approach when checking out rental listings.