Realtors and Prospecting — a case for making the calls!

By
Real Estate Broker/Owner with Berkshire Hathaway HomeServices The Preferred Realty

Sometimes old school prospecting just works

There is a primal fear that most real estate agents have about making “cold calls” to generate business for themselves.  Whether they state outright that the avoidance is about not wanting to feel rejected, or whether they hide behind excuses built around a "do not call" list, the simple act of picking up the phone and calling residents of a neighborhood in hopes of finding a potential listing is terrifying for many people, and often they simply refuse to participate.

That’s too bad, because if done correctly, cold calling works, and you -- the Realtor reading this post -- could be supplementing all of your other activities and income by doing so.

Now, those of you who know me might be thinking, “Wait, but isn't he that 'social media' guy? The one who does not believe in old-school real estate practices?”

Well, yes, I do have a proclivity toward the use of social media in building strong relationships and engaging others. But that doesn't mean the computer is the only way I reach out to people. Online networking is only one part of my overall business strategy. I am also on the phone all day long, mostly with people whom I've never met face to face.

The fact of the matter is that Realtors still need to interact with the public in traditional ways as well as new ways. In fact, we need to engage with people in every way that people now engage with each other, through every medium that the modern world uses. Yes, that means using FaceBook and Skype, but it also means picking up an old-fashioned telephone -- or even a shiny new smart phone -- and reaching out to strangers who might find you to be a resource.

Is there a chance that some people will reject you? Yes, absolutely. But there is also another possible outcome, which is that some won't. Let's say that you set aside one hour each day to make 10 calls. About

3 out of every 10 people you contact will actually discuss their home with you on the phone, and 1 out of 10 will agree to schedule a listing appointment with you. That's 5 new appointments generated each week. Provided you have a successful listing presentation strategy, at least 1 and hopefully 2 out of these 5 appointments will turn into listings. And to be conservative, let's say 1 out of every 2 listings actually sells.

Let's do the math:

Ten calls a day = five listing appointments a week = two listings a weeks = eight listings a month = four sales a month.

In my office, the average list price is $400,000, so we're talking about $1.6 million in additional sales volume each month. Not bad for one hour a day of phone calls, right?

Now, you do need to know what to say and how to say it, and you need to practice, but all that requires is that you carve out time to work on it with people who can help you perfect your approach. You just have to make the commitment to make things happen.

It's true that I spend a lot of time and effort on my social media outlets, but I also make calls every day to agents in my marketplace. I am not obnoxious (at least I hope not!), but I am persistent, much more so than my laidback online persona. I call people I want to call, but I call. Every single day. And therein lies the difference between those who make it rain and those who don’t.

If you can make a call and procure an appointment, regardless of the outcome, you have already won the battle, because so many in the same position will not even get that far.

So here is my challenge to you: make the time tomorrow to call just 5 residents of homes near one of your office's listings, and tell them you are on a mission to find a great buyer for that house. Ask them if they know anyone who has considered moving into the neighborhood. Then wait and see what happens.

Someone just might answer yes!


To read more from Darrin please go to: Darrin Friedman, The Real Estate Tech Broker

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Ambassador
780,457
Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

Simple but effective. Most agents would kill for 8 listings a month. Sadly few would make some calls to make that happen.

Aug 15, 2011 07:33 AM #1
Rainmaker
2,571,123
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The hottest subject around is Real Estate which by the way gets billions of free media coverage daily. Talk to anyone you meet and chances are it can lead to a potential opportunity now more than ever.

Aug 15, 2011 07:38 AM #2
Rainmaker
1,351,744
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

You said it all, and very well, indeed.   Solid biz practices always win the day.

Aug 15, 2011 07:39 AM #3
Rainmaker
568,524
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Darrin my ongoing evaluation is about whether a particular activity is worth the time. I suspect that the ratio of “x out of 10” varies greatly by market, time of year and price range.

Aug 15, 2011 07:46 AM #4
Rainer
137,743
Gabrielle Jeans
WebTech Dezine, Gabrielle Jeans Real Estate Coach - Toronto, ON
Real Estate Web Solution, Real Estate Trainer and Coach

I was just talking about this topic recently with a colleague. Great post Darrin

Aug 15, 2011 09:21 AM #5
Rainer
90,161
Phil Hillerman
Crye-Leike Realtors® - Rogers, AR
Crye-Leike Realtors®

Good Morning Darrin,  Prospecting is still the best way to generate activity.  Social media is one form, cold calling is another.  For me it take a blend of both.  Have a great week!

Oct 17, 2011 01:55 AM #6
Rainer
118,833
Karen Salmon
Royal LePage Benchmark - Okotoks, AB
Okotoks Real Estate Agent
Consistency in anything you do will bring results. Great job finding a technique that works for you
Oct 27, 2011 01:53 AM #7
Rainmaker
200,402
Cory Fitzsimmmons
ReThink Real Estate Group - Golden, CO
Realtor - Denver, CO ReThink real estate group

Still a very relevant post, I will share with my agents.  Thanks!

Nov 29, 2012 01:08 PM #8
Rainer
15,424
Joseph Carlisle
RE/MAX West Realty Brokerage - Toronto, ON
Opening Doors For Homeowners Like You

Thanks for the post. Phone fear is an excuse, I know this because I almost ruined my business by avoiding the phone out of unfounded fear.

 There is no better way to get business like calling around my company's "Just Listed / Just Solds". People want to know what is happening in their neighbourhood.

 

Jan 04, 2014 08:10 AM #9
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