Cold Calling Tips & Best Practices for Agents

INTRODUCTION

Understanding real estate cold calling

Regardless of how long you’ve been in the real estate business, the words cold call might be anxiety-producing. That might explain why the vast majority (90%+) of U.S. real estate agents DO NOT prospect for new business via the phone. These agents often rely on passive lead generation strategies such as direct mail or letter writing/ They avoid cold calling at all costs because they fear talking to strangers and the rejection that comes with the territory.

But here’s the thing: real estate cold calling works! In 2012, Keller Williams, working with the Keller Center at Baylor University, researched the effectiveness of cold calling. They found that agents who consistently prospected on the phone for one hour per day, seven days a week, would get a listing appointment for every 209 calls they made.

For the Keller Williams study, COLD CALL NUMBERS were defined as a “random set of numbers from a region not previously marketed by an agent.” Notably, these were truly cold calls because the agents knew nothing about the person on the other end. These “prospects” haven’t previously expressed interest in buying or selling a property. In other words, they were random homeowners, not leads.

In this post, we will dive into real estate phone prospecting. In particular, we’ll discuss how advanced technology, like that employed by Vulcan7, moves real estate phone prospecting from cold calling to “warm calling.”

REAL ESTATE COLD CALLING

Why cold calling is important

There are myriad benefits to regular cold calling. Here are a few to consider:

• Cold calling is the fastest and most effective way to introduce your services and start to fill your prospecting pipeline.
• You can establish your name and reputation in your MLS by committing to regular cold calling.
• Phone prospecting is all about building rapport and relationships. Rapport-building (as discussed below) is critical to building trust with homeowners.
• Real estate cold calling provides immediate feedback, unlike emails, postcards or other forms of passive prospecting. A phone conversation helps you gauge someone’s interest and handle objections in real-time.
• As noted above, most real estate agents do not actively phone prospect. As such, active phone prospecting can give you a competitive advantage in your area.
• Daily cold calling helps you handle and learn from rejection, an inherent part of any sales profession, especially in real estate.

We’ve established that phone prospecting is essential if you want to have a thriving, profitable real estate career. Now, let’s take a look at how you can move from classic cold calling to lead generation through “warm-calling” with Vulcan7.

LEVERAGING VULCAN7’S ADVANCED TECHNOLOGY

Moving from cold to warm calling

In the introduction above, we defined cold calling as reaching prospects who haven’t previously expressed interest in buying or selling a property (i.e., random homeowners, not leads).

Vulcan7 has transformed cold calling into “warm calling” by providing agents with a multi-faceted lead generation system featuring the best LEADS in the industry. Top-producing agents throughout the industry have come to rely on Vulcan7’s leads as the foundation of their prospecting efforts.

Vulcan7 provides real estate prospecting software with a focus on four major areas of prospecting lead data:

• Expired Listing Leads: Homeowners who’ve tried and failed to sell their property. Perhaps it was priced poorly. Or, maybe the agent didn’t do enough to market the property. Or, it’s possible they withdrew the property from the MLS because their life plans changed. Whatever the reason, you know that expired were, at some point, actively engaged in trying to sell, thus, a potential revenue opportunity for you. Vulcan7 provides our customers with Expired Leads every morning, seven days a week, giving you the most recent information you need daily.
• For Sale by Owner (FSBO) leads: Since 9 out of 10 FSBO listings fail to sell without an agent getting involved, FSBO listings are a great opportunity to generate income. Building a relationship with the owner before they begin actively looking for an agent will put you on their radar when they realize they do need an agent.
• For Rent by Owner / Investors: FRBO prospects represent a unique revenue opportunity for real estate agents. While the owners usually aren’t looking to sell that specific property, it generally isn’t the only one they have. Working with owners who list FRBO properties can reveal information about other lucrative options.
• Neighborhood Search: Whether contacting the neighbors of your listings, creating buzz for your open houses, or farming buyers and sellers in any given area, every agent needs a good real estate prospecting tool for circle prospecting. Vulcan7’s Neighborhood Search products help you get on the ground in your targeted area.

Check out our post on HOW TO GET NUMBERS FOR COLD CALLING for more tips on effective phone prospecting.

BUILDING RAPPORT THROUGH REAL ESTATE COLD CALLING

Your goal is to get in the door!

Rapport refers to a harmonious and positive relationship characterized by mutual understanding, trust, and cooperation between individuals.

Establishing rapport is essential for effective communication and collaboration in various contexts, including business, personal relationships, and professional interactions.

Let’s look at some of the elements that go into building rapport:

• Building trust is fundamental to rapport. Trust involves reliability, honesty, and a belief that the other person has your best interests in mind.
• Effective communication is crucial for rapport. This involves conveying information clearly and actively listening to others, understanding their perspectives, and responding appropriately.
• Being able to understand and share the feelings of another person is a key component of rapport. Empathy helps create a connection by demonstrating that you recognize and respect the emotions and experiences of others.
• Finding shared interests, values, or experiences helps create a sense of connection. People feel more comfortable and connected when they discover commonalities with others.
• Treating others respectfully, regardless of differences, is a fundamental aspect of rapport. This includes being considerate of their opinions, boundaries, and cultural sensitivities.
• Positive and friendly interactions contribute to the development of rapport. A positive attitude, humor, and a welcoming demeanor can help create a more enjoyable and comfortable atmosphere.
• Being adaptable to the communication styles and preferences of others is important. Flexibility in your approach can demonstrate a willingness to connect on the other person’s terms.

Building rapport lays the foundation for effective collaboration, understanding, and cooperation in real estate prospecting. It contributes to a positive and constructive environment where individuals feel valued and supported.

Pick up some excellent tips on building rapport in our post: RAPPORT DRIVES REAL ESTATE PROSPECTING.

REAL ESTATE COLD CALLING SCRIPTS

What to say when cold calling for real estate

Our post, SCRIPTING TIPS FOR REAL ESTATE AGENTS is a comprehensive guide to working with real estate cold calling scripts.

Many agents reject using scripts for fear of sounding too mechanical. But, the truth is, you can experience myriad benefits from working with lead generation scripts:

• Consistent delivery: The more you work with real estate prospecting scrips, the more focused and consistent you’ll become. Consistency will help you become comfortable when making your prospecting calls.
• Confidence: The more comfortable you become using real estate scripts, the more confidence you’ll exude to the prospect on the other end of the call.
• Professionalism: Confidence translates to professionalism. Homeowners, especially those with expired listings who may have had a negative experience with their previous agent, need to feel confident that they are working with a pro (you) who can get the job done.
• Handling objections: Proven real estate prospecting scripts like those you’ll have at your fingertips as a VULCAN7 CLIENT, are an ideal tool for helping you handle and deflect the inevitable objections that come with being a prospecting real estate agent.
• Building rapport: The more comfortable you become with scripts, the more effective you will become at connecting and building rapport with your prospects. Remember: people want to work with people they like.

Two final points about working with real estate cold-calling scripts:

1. Start your prospecting day by working with a role-playing partner who can help you hone your delivery and master your ability to handle objections.
2. As a Vulcan7 client, you’ll have access to the best cold-calling scripts in the industry. Plus, Vulcan7 can connect you to other agents willing to be role-playing partners.

CLOSING THOUGHTS

The importance of follow-up

By following the strategies and tips above, you’ll soon become comfortable with warm calling and begin to gain your prospects’ trust. This is when you need to remind yourself NOT TO LET UP!

It’s widely acknowledged that more revenue is lost because of poor follow-up instead of poor lead generation.  You must be diligent in your follow-up, not letting up until you’re sitting at the closing table.

Vulcan7’s industry-best CRM platform provides the tools to stay on-task throughout the prospecting process. Also, you’ll find excellent tips in our post on REAL ESTATE LEAD GENERATION FOLLOW-UP.

To learn how Vulcan7 can move your prospecting from cold to warm calling, CONTACT US HERE.

Doug Spak

Doug Spak has over four decades of experience as an advertising copywriter, agency creative director, blogger, and content creator. He joined Vulcan7 as a Content Specialist in 2016. In addition to ongoing website copy refreshes, Doug has produced over 300 blog posts while developing content for Vulcan7’s social media platforms.