What You Need to Know About Prospecting

March 21, 2021

Prospecting for clients is an important activity for any real estate professional.

In this article, we’ll explain what prospecting is and why it’s especially important for agents, as well as the skills and tactics you can use to prospect successfully.

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What is prospecting?

Prospecting is the essential first step in the sales process. It involves identifying potential clients and then communicating with them to convert them into actual clients. 

Why real estate agents should prospect

Effective prospecting helps an agent to ensure they always have a steady stream of client listings. It’s important to have the discipline to prospect regularly. Agents that spend all their time only focusing on their listings are likely to find they’ll soon run out of properties to sell.

Successful agents set aside specific time for prospecting activities each week. They build databases of potential and existing clients. Once these agents sell a client’s property, that client can also assist them with future prospecting.

They can do this by providing referrals and testimonials to help the agent attract new potential clients.

Prospecting skills and tactics

real estate agent on phone with clientThere are a wide variety of prospecting tactics you can use as an agent. These include:

Many of the skills, like RPL in real estate, are necessary for successful prospecting are the same skills needed for successful selling. For example, planning, communication, negotiation and relationship-building skills.

  • Getting involved in community events to lift your profile. For example, volunteering your time for activities that interest you so you can get to know more people in your area. People generally prefer to deal with people they know and like, and real estate clients are no different. Take business cards with you wherever you go
  • Attending professional networking events where you gather useful information and contacts
  • Email marketing
  • Letterbox drops
  • Cold calling via phone calls or door knocking.

Most agents use a variety of these prospecting methods. Whatever prospecting method you use, it’s important that the message you communicate is effective. Ensure the timing and content of your message is appropriate for each potential client that you contact.

  • Keeping in touch with your past clients for referrals. Referrals from satisfied clients are a very powerful form of ‘word-of-mouth’ marketing. People tend to trust the recommendations of their family and friends over other sources
  • Calling the recently expired listings of other agents. When you do, make sure you do your homework and are prepared. It’s an opportunity to explain why you can achieve the sale that another agent hasn’t
  • Contacting ‘For Sale by Owner’ listings, especially if they have been on the market for some time. Again, this is an opportunity for you to explain why they need an agent like you to sell their property and why paying commission is a worthwhile investment to achieve the best possible selling price quickly
  • Engaging in content marketing activities to build your brand. For example, writing blogs about real estate topics and/or doing interesting social media posts that can be shared on popular platforms such as Facebook and Instagram
  • Hosting a free real estate seminar. Make sure it’s on a topic that will appeal to potential clients, like ‘Tips for Selling Your Home’. Many people think about selling their home long before they actually list it

real estate agent talking at a seminar

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