As a real estate agent, you are always looking for ways to increase your contacts database. The more potential clients you have a connection with, the increased potential for future business. However, making these connections can be easier said than done, especially for newer agents. To better spread their reach, many successful agents use the time-tested circle prospecting method.
Circle Prospecting
The theory of circle prospecting is, in fact, elementary. It operates on the assumption that people around a newly sold home would be interested in learning more about it. This theory has obvious truth. Everyone has had conversations with friends and family about recent real estate transactions in their area. People are inherently interested in the properties around them.
Goal of Circle Prospecting
Circle prospecting is not always done to find a new potential buyer or potential seller immediately. The goal of circle prospecting is often to create connections with residents circling the property you were involved with. By familiarizing yourself with local property owners or renters, they are more likely to contact you when they need representation. The most successful real estate agents set themselves up for consistent clients in the long term.
How to Build a Successful Circle Prospecting Strategy
The question then is how best to go about circle prospecting. There are several methods you can use to establish connections with nearby residents. Standard circle prospecting strategies include cold calling, going door-to-door, conducting open houses, attending local events, and more. A real estate agent in Tampa recently shared a circle prospecting strategy she used to significant effect. She contacted a local company, who supplied her with a list of local numbers, and she then left a voicemail for each of these residents. The volume of call-backs she received was outstanding!
Neighborhood Search
The emphasis of circle prospecting is to focus your search efforts on a specific area. As a real estate agent, you have to determine the best neighborhoods on which to spend your limited time and energy. You should decide what methods worked best for the recently sold home and then decide if those same strategies would work for their neighbors. Every neighborhood has its unique characteristics and cultures, so by using the methods you already successfully employed, it stands to reason that you may find success again.
Circle Prospecting Script
The script you use when conducting circle prospecting is critical. It is important to remember that circle prospecting is close to a recent sale. Thus, your script should focus on that recent sale and how it may reflect a hot market. You should prioritize a friendly, neighborly approach and convince your contact of your competence in dealing with homes in their neighborhood. Using a cold, detached method undermines the goal of circle prospecting. Help them understand that you already were a benefit to their neighbor, and in the future, you could be a benefit to them as well.
Cold Calling Tips
Achieving an upbeat, neighborly appeal is often easier in face-to-face strategies like open houses or going door-to-door. However, it can still be done when cold calling. To make a successful cold call while circle prospecting, you should remember that you only have your voice to establish the neighborly connection. The prospective client cannot see your facial expressions or body language, so you want to sound as upbeat and excited as you can. Additionally, you want to include information that shows you are an expert on the local real estate market and passionate about helping that specific neighborhood.
