Additionally, here are 25 lead generation ideas for real estate.
Now, let’s dive into real estate cold calling strategies…
Are you a real estate professional looking to learn more about real estate cold calling? You’ve come to the right place!
This guide will teach you everything you need to know about using cold calling to generate real estate leads, including common cold calling mistakes you need to avoid and tips on how to overcome the fear of cold calling.
We’ll also show you the real estate cold calling strategies you need to be great at cold calling, give you a few of our favorite cold call scripts, and teach you how to create your own custom script.
What is cold calling?
Cold calling is the practice of making an unsolicited phone call to a prospect with the intention of selling them a product or service. Most cold calling is done with no prior contact ever being established with a particular prospect.
Cold calling is one of the most commonly used methods of lead generation in a wide variety of industries, including the real estate industry.
Is real estate cold calling effective?
Real estate cold calling has developed a bad reputation in recent years, mainly because it doesn’t fare well when compared with digital channels such as PPC advertising and social media.
However, research shows that residential brokers that use cold calling set up one appointment for every 209 calls they make.
On average, this takes them around 7 hours and nets them an hourly rate of $387.7/hour (Baylor University).
Not so bad, is it?
You also need to keep in mind that most people who do cold calling don’t do it right, so top-performers are more than likely getting even better results.
We’re going to discuss some of the most common cold calling mistakes in the next section and explain how you can avoid them.
Cold calling mistakes
Cold calling is one of the most popular methods of lead generation in the real estate industry. However, it’s rarely done properly.
Here are the most common real estate cold calling mistakes we’ve seen agents do:
Lack of consistency
Most agents do cold calling sporadically. It’s hard to get consistent results if you’re not making phone calls consistently.
You need to set a cold calling schedule and follow it religiously. Start at around 30 phone calls a day and keep increasing the number as you get more comfortable.
Lack of practice
You need to rehearse what you’re going to say to your prospect over and over. If you don’t sound confident, mispronounce words, and make awkward pauses, it’ll be very hard for you to convince someone to work with you.
No cold call script
Using a cold call script is crucial for ensuring that your call has direction and a clear way to guide prospects towards making a decision. If you’re not using a script, your call might end up going in another direction than the one you initially planned.
You’ll also have a harder time dealing with your prospects’ objections.
Not being respectful of the prospect’s time
Most prospects will be too busy to take a long call. If they see that you’re taking too long to say what you need to say, they’ll look for a quick way to end the call.
This might involve giving you a no or asking you to call back later.
It can be avoided if you prepare for the call properly. If you’re prepared, you won’t need much time anyway.
Not showing enough value
If the value proposition you’re presenting in the call is for you to meet with the prospect and introduce your services, your offer isn’t compelling enough. You need to find a way to present more value for your prospect so that they can’t wait to meet you.
Using filler phrases
Most of your prospects will have heard filler phrases such as “How are you doing today?” and “Did I catch you at a bad time?” a thousand times already by the time they receive your call. Avoid using such phrases since they make you sound disingenuous as well as waste your prospect’s time.
Try to get to the point as quickly as possible.
How to get over the fear of cold calling
Most successful cold callers had a fear of cold calling when they were first starting out. If you’re afraid of getting on a call with a complete stranger too, read the tips below so that you can get over that fear as quickly as possible.
Do your research
Do as much research as possible on your prospect before calling them. Have a clear understanding of the value you can provide to the prospect.
This will help you to be more confident during the call.
Understand that you’ll get a lot of no’s
Cold calling is a numbers game. The majority of your calls won’t end up in a meeting or sale.
Simply accept that fact and keep calling.
Don’t focus on rejections. Focus on increasing the number of calls you make every dayinstead.
The more calls you make, the quicker you’ll get used to rejection.
Overcome negative thinking
What kind of negative thoughts stop you from picking up the phone? Do you think you’ll annoy the prospect, not know what to say, or get a no from them?
Try to analyze these thoughts rationally.
If you’re offering something of value to your prospects, they won’t be annoyed by your call. If you prepare for the call, you’ll know exactly what to say.
As for getting a no, well, we’ve discussed this before. You’ll be getting a lot of no’s, just accept that.
Trust the math
We’ve mentioned this at the start of this guide, but if you’re at least average at cold calling, real estate cold calling stats show that you’ll be getting one appointment for every 209 calls you make. Trust the math and just keep calling.
How to be great at cold calling
You’ve learned what cold calling is, what cold calling mistakes you need to avoid, as well as how to get over the fear of cold calling.
Now we’ll show you everything you need to know to be great at cold calling and ensure that you have the greatest chance of turning your cold calls into meetings and sales.
Research your prospects
Find as much as you can about your prospects. Google them and check out their socialmedia profiles.
See if they have a personal website.
Gather all of this information into your CRM software (or notebook if you’re old school), and make sure to go over it prior to making the call.
This will give you the upper hand in the conversation and enable you to set yourself apart from all the other agents that are most likely calling your prospect.
Prepare answers to common questions
You’ll be getting a lot of the same questions over and over when you talk to prospects. Most of them will want to know what other clients you’ve worked with, the types of real estate you usually deal with, as well as the average time on market for your listings.
They’ll also be interested to learn about how you promote listings.
Make sure to prepare answers to all the questions you usually get from prospects so that you’re ready when they come up during the conversation.
Be completely honest with prospects and let them know that they’re on a sales call. Tell them that you’re looking to earn their business and will be collecting a commission in case of a successful close.
Being straightforward from the start will make sure that you get straightforward answers from your prospects as well.
Get to the point quickly
Don’t spend too much time making an introduction. In most cases, two sentences are all you need to introduce yourself and explain what you do.
Make sure to state your full name, as well as the name of your company.
Once prospects agree to talk to you, try to get to the point and present the value you’re offering them as quickly as possible.
This might sound contradictory to the point above, but it’s not. You can talk slow and still give the prospect all the information they need quickly.
Sometimes, you might be thinking about your pitch so much that you don’t realize you’retalking too fast. Talk slow and make sure to speak clearly.
Use a friendly tone and be patient with your prospects. Make sure you talk loud enough so that prospects don’t have to ask you to repeat yourself, but don’t talk so loud that you’re screaming in their ear.
Make your ask specific
If you’re looking to set up a meeting with your prospect, don’t ask if they have time next week. That’s too vague.
Instead, ask something like, “Are you available on Thursday at 2 PM?” This will allow you to schedule a meeting right then and there, instead of having to get on a second call to make the final arrangement
Use a cold calling script
There’s plenty of great real estate cold calling scripts available online so make sure to take advantage of them. You can also create your own if you want.
Using a script is crucial for making your call a success. A script will provide you with talking points, and set a direction for your call.
Even veteran cold callers who’ve been in the game for over a decade still use calling scripts. There’s no reason you should shy away from using one either.
Adjust your pitch for each specific prospect
Every one of your prospects will have their own unique pain points that they’ll be looking to solve. You’ll be talking to young couples who need a starter home, older folks who’re looking to sell their large home because their children moved out, etc.
Make sure to tailor your pitch to each specific prospect and explain to them how you can help them solve their problems and reach their goal.
Call at the right time
Statistically, the best days to call a prospect are Wednesdays and Thursdays, while the best time to call is between 4 PM and 5 PM (Copper).
Note that these are just starting guidelines, you’ll need to do your own testing to find out the best time to contact your specific audience.
Call from a local number
Most prospects will be reluctant to answer a call from an unknown area code. That’s why you should always call prospects from a local number.
Don’t talk badly about your competition
Don’t be one of those agents that bad-mouth their competition. Talking badly of yourcompetitors won’t bring you any favors.
If a prospect mentions another agent, talk kindly of their work and try to find a nice way of explaining why the prospect should work with you instead.
Always leave voicemail
As much as 90% of all cold calls go to voicemail, so you should definitely leave voicemail for your prospects every time you get a chance (Business2Community).
Plan out the voicemail you’re going to leave in advance. Focus on getting the prospect to call you back, nothing else.
Keep in mind that the optimal voicemail length is between 8 and 14 seconds, so try to keep your message within that range (The Sales Hunter).
Use a multi-channel approach
Contacting your prospects through multiple channels will generate much better results thansimply using the phone. Combine cold calls with texting, emails, and voicemail to improve the chances of reaching your prospect.
The easiest way to do this is to use a sales automation tool such as DealBloom.
DealBloom enables you to reach your prospects in a variety of different ways, including calls, voicemail drops, emails, texts, social media, and direct mail. It makes managing all the communication you have with prospects extremely easy by utilizing a centralized inbox.
Remember to take breaks
No matter how good you get at cold calling, you’re not a machine. Remember to take a break from cold calling every hour to stretch and clear your head.
Real estate cold calling scripts
In this section, we’re going to list cold calling scripts for some of the most common scenarios you’re going to run into when prospecting for real estate leads.
The Expired Listing
As its name implies, this script is meant to be used with homeowners whose listing has just expired.
Hi, is this the homeowner? I’m _____ with _____.
You know, I work in the neighborhood, and I noticed that your home was no longer for sale.
Are you planning to put it back on the market?
I can understand why you might feel pretty discouraged — it’s a great house. Any idea why it didn’t sell? Any offers?
I was just surprised to see it on the market for ___days, I assumed it would be gone in a few weeks. What made you decide to sell? Where are you moving to?
I know you’ve likely had a few people calling you, but as I said, I’ve worked in the neighborhood for # years, I know this neighborhood, I’ve sold homes in this neighborhood, and I’d love a chance to sell your home or at least take a tour and see what might be holding it back.
Would you mind if I came by this Saturday at _____? I’m happy to give you some feedback.
For Sale By Owner (FSBO)
Most agents consider the FSBO prospect to be ideal for offering their services. Since these people have already decided that they want to sell their property, all you need to do is contact them and convince them that you can help them to do it.
Hi, I am calling about your home. Are you the primary homeowner?
I’m (name) with (real estate company). I see that your house is for sale, and I’m wondering if your asking price matches my research about the possible sale price of your house.
How much are you asking? (listen)
Ah, I think you can actually get more for your home. I’ve compiled marketing data that shows houses in your area with the same features are selling at (insert price) and take an average of (insert days) to sell.
A good real estate marketing plan can increase the possibility of sale and decrease the number of days on the market — both while ensuring a higher sales price.
Would you be interested in discussing how I can help you make this happen? (wait and listen)
Recent neighborhood sale
If you’ve recently sold a property for more than the average asking price in that area, you can contact other property owners in the neighborhood and see if they might be interested in selling.
Hi, I’m (name) with (real estate company). Is this the homeowner?
I recently sold a property down the street from you (details about the sales price) at (address).
That’s (dollar amount) more than the average sales price in your area, which means buyers are really wanting to buy in (contact’s development/community).
I was wondering: Have you thought about selling your home and if you knew you could get a fantastic price for it? (wait and listen)
How to create your own cold calling script
The scripts we’ve provided above are a great starting point, but perhaps you need something that’s better suited for your specific needs. If that’s the case, you can create your own cold calling script.
Don’t worry; it’s not that hard.
Here are a few tips to help you create your own script.
Set a goal
Before you start, make sure to set a goal for what you want your script to accomplish. Do you want to schedule another call, a meeting, or something else?
Make sure to be clear about this so that you can focus your entire script on achieving this one goal.
Use other scripts for inspiration
Don’t feel like you need to reinvent the wheel when you’re creating your own cold call script.
Find other scripts online and use parts of them that are relevant to your business, while discarding other parts that aren’t.
Start by telling them who you are and why you’re calling
Every script starts by having the agent introduce themselves and the reason they’recalling. Try to keep this as short as possible.
The prospect doesn’t need to know your entire life story.
You want your introduction to sound casual but professional. Make sure it doesn’t sound scripted or unnatural because that will put off your prospect straight away.
Address the prospect’s pain points
Find out what the prospect’s major pain points are and talk about how you can help them. Try to present the value you can provide as early as possible in the conversation.
Make the ask
Getting to the end of the call, you’ll want to make sure to ask for the sale or set upa meeting. Make sure that you’re clear as possible about the next step in theprocess.
Keep refining the script
Keep track of how prospects react to your script and refine it over time. You shouldhave a perfectly optimized cold call script after a few hundred calls.
Cold calling for real estate professionals
Most real estate professionals have used cold calling to generate leads at one pointor another in their careers.
Cold calling has been proven to be a very effective method of generating real estate leads, netting $387.7/hour for real estate agents.
Avoiding common cold calling mistakes can make it even more profitable. If you want tomake cold calling work for you, you need to be consistent and keep making calls every day.
You also need to use a good cold calling script and practice regularly. The scriptshouldn’t be followed blindly but rather adapted to each specific prospect.
Be mindful of your prospects’ time and make sure to present the value you canprovide them with as soon as possible.
Those that are afraid of cold calling should do extensive research before every call,as well as find ways to overcome negative thoughts.
Additionally, it’s crucial that you find the right time to contact prospects, as well as makesure to leave voicemail whenever a prospect doesn’t pick up their phone.
If you’re not able to find a cold calling script that fits your needs, create your own. Make sure to set a goal for your script and create a great introduction.
Your script also needs to address your prospects’ pain points as well as clearly ask for a sale or a meeting at the end of the call.
Finally, you should keep improving your script over time to ensure best results.
- 25 Lead Generation Ideas for Real Estate that Actually Work - January 9, 2020
- How To Use Ringless Voicemails to Generate Real Estate Leads - January 8, 2020
- Real Estate Text Message Marketing: The Complete Guide - January 8, 2020
Did you find value?
Want to look smart?
Use the share buttons below to share with your friends and followers on Facebook, Twitter, and/or LinkedIn.
You'll look like a hero for providing value to them and we'll love you forever for helping us spread the word!