The 10 Commandments of Real Estate Prospecting
Don't sell yourself short by selling someone you are not.
One of the first questions new brokers ask is how to prospect. They are stalled out by fears of being hung up on, have doors slammed in their face, pay for expensive cold leads, or mail postcards that fill trash-cans not pipelines.
I evaluated my own business practices and also asked some of the heavy hitters in our business about what they do that works. The answers may surprise you.
Selling is often an unnatural feeling as we begin. Let’s admit it we, ourselves, hate to be sold to. Yet here we are attending sales classes on how to not let clients slip out of our cramping grip, throwing close-lines on grocery clerks, and accosting friends and family like we freshly joined a new cult called ___your brokerage name goes here.
So let me make a wild proposal: Don’t.
That’s right. Do not sell. Don’t roll yourself in chocolate to land a client. Build a business with dignity.
Here are the 10 Commandments of Real Estate Prospecting:
BUILD A RELATIONSHIP
Be fun. Be yourself. I personally find 9 of 10 of my leads through my personal social media pages. So this advice might sound pretty wild. Truth is, especially when dealing with strangers AKA “cold leads” you need to build a relationship. It is true that people do business with people they know, like and trust. Not with people dangling over them with commission breath. Take the pressure off you and your suspect (they are not yet prospects) and relax. Be their friend, their neighbor, their awesome uncle they didn’t know they had. Work on building a relationship before you even begin asking for their business. You got this.
TAKE THEIR TEMPERATURE
And I mean orally. Find out where your client is emotionally. Listen to them and find out what their actual needs are. After all, if you have a relationship with them it isn’t about your next commission check, it is about connecting with your friend (you have not yet earned to call them a client). Care about what they are saying and learn where in the process they are. Play Columbo and figure out what the urgency is. Because:
DON'T POUNCE TO SOON
If Sally just told you she is thinking about buying a house she means she wants to have a conversation about it, and you are the lucky one she trusts for that. If you at that moment slide a Buyer’s Agency Agreement under her nose, she is likely to never give you that opportunity again.
WHEN TO BE AGGRESSIVE
If Sally tells you she is relocating and living with her in-laws and the moving truck parked in the driveway, you will lose the business if you don’t have her in your car within hours. I mean she just told you something terrifying--living with in laws. If that doesn’t send a chill down your spine and make your head empathetically nod, you must be a robot.
PRE-VET YOUR PROSPECT
As a general rule, I do not show houses to clients who have not been pre-qualified with a lender. I flat out tell them I do not want to waste their time teasing them with properties they cannot buy or get under contract and find out later they could have bought a dream home they didn’t even know was possible. Pre-approvals are not just a courtesy to the buyer, but to the seller as well, since they often clean their houses, round up the kids, and vacate the property for you to show it.
SLY MARKETING
No one really cares how many homes your team sold the last 12 months. Your client wants to know that you are capable without you pounding on your chest like a gorilla about how awesome you are. In your conversation with your client, casually mention some of your favorite real estate practices. Talk from the heart not your sales-brain. You will feel so much more comfortable and you will sound authentic.
SHARE YOUR UNIQUE SALES PROPOSITION
About that, what makes you unique? Please don’t answer “I provide the best customer service.” Let the client tell you whether or not you’re the best they’ve had. Think about how your serve your clients that sets you apart. You wouldn’t say “I serve my clients by getting them in my car and give them my pen to sign.” What you might say is something like “I have so much fun with my clients, most who are repeat investors. Buying investment real estate is a highly educational process and I enjoy taking new investors under my wing.”
SUGGESTIVE SELLING
It won’t take long before you, the expert, have a clear picture of what your prospect’s temperature is. Sometimes they need a little encouragement. Invite them to go scout an area you think they might like. Or let them know you previewed a house you think sounds like a pretty darn close fit and ask if they want to see it. If they say no the lead is probably not as hot as you thought and you need to incubate the lead a little longer.
DON'T BE AFRAID TO PROMOTE COLLEAGUES
I admit it, I am a freak. I do not view other real estate brokers as my competition. I view you as colleagues in the business. I love lifting up other brokers to my clients and honestly think it is a good practice for everyone’s business. If a seller says he just interviewed Bob, and I know who that is, I will say “Oh Bob? He is a great guy. Please tell him hello from me.” I also do not discourage people from buying in other markets. Instead I help vet amazing colleagues that I can refer my clients to. After all, they trust me and if they are in my local market they know how to find my office when they need someone locally. Besides as a great relationship building broker I am always making sure I stay top of their minds.
CLOSE THE PROSPECT
And here it is: close the sale.
We are talking about the agency agreement. You have worked hard and deserve your prospects trust and loyalty. You have earned their hand in business and it is time to pop the question. It is no longer awkward. And you no longer have to worry about premature closing syndrome. You both know this is right, and your client doesn’t even question who they would entrust the biggest investment of their life with. Pour some bubbly and throw some confetti, you have a client.
If you want more content like this, join our FREE Real Estate Business Builder Facebook Group here: https://www.facebook.com/groups/rebusinessbuilders/