“Always be closing,” said Alec Baldwin to a group of real estate salespeople in the 1992 film Glengarry Glen Ross. What he should have said was “always be prospecting.”
It is important to “always be closing”; to translate prospecting initiatives into sales goals. This is what the profession is all about, at least in part. What’s more important is ensuring that when you do close the transaction, it is because you have connected the right property with the right clients. How to connect the right property with the right clients? First, you have to find the clients.
Following is a list of several prospecting techniques, which we will describe briefly. We will examine each technique in more detail in future blog posts.
Cold calling is making unsolicited telephone calls or visits. It may be unnerving at first, especially if you are new to your profession, but it is effective. Cold calling can be less daunting if you:
• Determine how many cold calls to make each day (make sure the number is reasonable)
• Have a clear understanding of your objectives in making the calls
• Remain positive
• Keep the contact professional, polite, and brief
Before you begin telephone cold calling, check with your brokerage, check the MLS® listings of your local real estate board to ensure you do not call a property listed for sale, and review the National Do Not Call List website at http://bit.ly/1oomy5R.
One great thing about selling real estate is that everyone you know or have met may, at some point in their lifetime, require your services.
Warm calling, broadly defined, is anyone who might recognize your name if you introduce yourself. So, take the opportunity to advise individuals you have met that you are now selling real estate.
Converting For Sale by Owner (FSBO)
Some home sellers decide they do not need the services of a REALTOR® and decide to sell their homes themselves. This is an opportunity because these individuals want to sell. The challenge – they don’t want to use a REALTOR® for a variety of reasons. Your job will be to convince them why and how they would benefit from using a REALTOR®. What should you tell them?
• Because you have access to the Multiple Listing Service®, you can tell them what a property is worth.
• You have the knowledge and skill to market the property effectively.
• You have the knowledge and experience to negotiate successfully on their behalf.
• You will handle the paperwork and ensure it is completed properly.
Working a Farm
In real estate, ‘working a farm’ means choosing a target market and positioning yourself as an expert in the minds of buyers and sellers in that market.
Farming can be classified under two headings – geographical and personalized. Geographical farming is targeting a specific area/neighbourhood. Personalized farming is based on your interests, hobbies, and relationships (e.g., people in a specific profession, or people who belong to a specific club).
Direct your marketing initiatives (advertisements, website, newsletters, door knocking) towards buyers and sellers in inside your farm. Your goal is to build your presence and reputation.
‘Expireds’ refers to listing agreements that have reached their expiry dates, meaning the listing brokerage no longer has a representation agreement with the seller. Before you contact this type of listing, ensure the sellers have consented to being contacted once the listing expires. This information is noted on the listing.
Working Another REALTOR’S® Open House
This technique is based on the premise that you have no listings and a lot of spare time, and another salesperson in your office has lots of listings and no spare time. This is an excellent networking opportunity – it’s a great way to meet potential prospects and gives you the chance to practise your communication skills.
For More Information
More information in A Mentoring Kit for New Salespeople: Training for Success –http://bit.ly/1pIJHHG.
Share your prospecting technique.