The Evolution of Circle Prospecting – Is It Successful?

Circle prospecting 101

One of the first things real estate professionals learn is the importance and value behind having a database of strong relationships, however, it is also a pain point for them as well. Many agents struggle not only obtaining a Rolodex of contacts but also obtaining the right homeowner data to keep on file. An effective way of moving past this hurdle is through circle prospecting.

Circle prospecting is a tactic where real estate agents call homeowners within a specific radius from where a recent listing is located. Essentially, it’s choosing a neighborhood and making contact with as many homeowners as possible within that area to help generate new leads. The goal of this is to provide value to the homeowner in an attempt to create a lifelong relationship. However, there are a few details to this process that are up for debate including whether or not having a circle prospecting script on hand is helpful and when, if there is the best time to call homeowners.

Start With Research

First and foremost, it’s critical to have the right data. Look at the neighborhoods that you’re familiar with and do some additional research. Before you start your outreach, you’ll want to know the average home price in the area, recent sales, information on the neighborhood itself and the surrounding community. Then we step in. In under 30 seconds, IVY DATA will generate the information you will need to make contact with each homeowner in the designated area.

Scripting vs. Not Scripting

As agents begin outreach, many begin to ask themselves, to script or not to script? We’re here to tell you that prospecting scripts for real estate agents are critical as they help guide agents through each conversation. There are a few different styles of scripts so its important real estate agents become familiar with the best cold calling scripts (we have a few examples we can provide). Given a script may sound forced, it’s recommended to practice and role play with others in the industry to become more familiar. If you’re up for a challenge, role play with friends and family who are homeowners so you experience more of a real-life scenario – this will force you to adapt on the fly and think on your feet.

Communicate

Lastly, you’ll want to be consistent in your communications with each homeowner to retain a relationship. While some might be more difficult to transact than others, most homeowners are ready to buy or sell the first time you reach out. Because of this, it’s important to not only act fast but to remain in contact with them but during and after the transaction, which will help further build that relationship.

By following these tips, you’ll not only become a circle prospecting pro in no time, you’ll have an extensive roster of contacts and relationships! To learn more about circle prospecting and the other tactics clients have used to stay ahead of the competition, visit our website or call us at 602.698.8787!