Circle Prospecting: Best Guide for Agents (Tips, Scripts, and More)

Are you on the lookout for effective ways to expand your reach? Circle prospecting is a game-changing strategy that allows you to do just that!

In this article, we’ll explore the ins and outs of circle prospecting in real estate. We’ll also share expert tips and a few common mistakes to avoid.

Real Estate Circle Prospecting Strategies: Explained

The principle behind circle prospecting is to connect with homeowners in a specific area and let them know about recent listings or sales in their neighborhood.

It’s different from making FSBO calls because you’re engaging with an audience that might not be actively trying to sell. The good news here is that circle prospecting can be less competitive than the FSBO counterpart.

Goals

The main goal of circle prospecting isn’t to chase quick sales. Instead, it’s all about making genuine connections with people in the area and hopefully creating opportunities as you go.

By letting people know about recently sold homes near them, you can get them to consider moving. If you do the prospecting calls and follow-up well, they might consider taking you as their agent if they ever decide to sell their properties later.

So, your goals will include:

Planting seeds with potential clients.
Positioning yourself as a go-to resource for real estate information in the neighborhood.
Gaining valuable insights about the area.

Forms

Circle prospecting comes in various shapes, from giving away flyers and open house invitations to creating email campaigns. You could even go with the door-knocking approach.

However, one of the most common ways to engage with potential clients is through phone calls.

We’ll dig into the circle dialing tips and best practices in a minute. For now, let’s take a look at how the typical circle prospecting call process works.

Look for opportunities to circle prospect and identify the target area.
Find a targeted database of contacts in the area.
Do the outreach and present the value proposition (usually via a script).
Follow up on the leads.

Tools

To boost the process, you could resort to tools like:

Dialers
CRM systems
Geographic database services (like GeoLeads)
Email campaign software

Why Use Circle Prospecting

As a real estate agent, you might be wondering why circle prospecting calls are worth incorporating into your lead generation strategy.

Let’s explore three compelling reasons that make this form of prospecting a powerful tool for growing your business.

1. To Capitalize on Your Recent Listings or Sales

Sure, not everyone you speak with may be interested in selling right away.

However, your proactive approach can lead to fruitful relationships and bring in potential clients down the road. This is particularly true if you can show them that you managed to help their neighbor get a good deal.

2. To Close Deals Faster

More often than not, the script involves asking the nearby neighbors if they know anyone interested in the recent listing. This could help you find potential buyers and close deals faster.

But there’s also another angle to consider.

Imagine you know a qualified buyer who wants to move into the neighborhood but missed the most recent listing. Then, during your circle prospecting calls, you happen to speak with a homeowner who expresses interest in selling just like their neighbor did.

That’s a quick way to strike a new deal!

3. To Expand Into New Markets

Circle prospecting allows you to explore hot markets beyond your usual territory.

By focusing your neighborhood search on areas with high turnover rates, you can identify promising areas and start digging for fresh real estate leads.

5 Tips for Implementing Circle Prospecting

Now that we’ve covered the basics, we can check out what you need to do to nail your first prospecting campaign.

1. Get in the Right Mindset and Do Your Homework

To succeed in circle prospecting, you’ll need to shift your mindset towards providing value and building relationships.

Remember that being well-prepared allows you to answer any homeowner’s questions confidently and demonstrate your expertise!

So, before making the calls, look into essential market data, such as the average prices in the area and recent sales activity.

2. Grab Your Contact List and Keep It Targeted

To start your prospecting, gather phone numbers from local companies or databases. However, before making the calls, you’ll need to cross-check the numbers with a Do Not Call list to avoid any compliance issues.

There’s also one more note here.

While it may be tempting to have an extensive contact list, it’s often more effective to keep things targeted. The further you stray from the listed property, the less relevant your script becomes.

It’s hard to estimate how many contacts should be on the circle prospecting list, though. The perfect number depends on factors like the neighborhood size and your overall lead generation strategy. So we’ll have to leave it to you to decide what works best for your situation.

3. Prepare a Flexible Yet Effective Script

Scripts are essential for circle prospecting, and you can tailor them based on the situation—just listed, just sold, and so on.

However, instead of treating the script as a rigid guideline, you’ll want to create a dynamic conversation.

To do that, use the script as a starting point and adapt the conversation based on the homeowner’s responses. Check the next tip to see the sort of critical questions and topics you could use to direct the conversation.

4. Collect Data Without Being Pushy

Even if the contact isn’t interested in selling their property right now, you can still gather valuable information to build a pipeline.

Ask questions about their plans and preferences, such as when they might be planning to sell or where they would consider moving to later. Try to find out if any nearby neighbors want to sell, too.

Just remember to be respectful and avoid being pushy or nagging. The goal is to establish a positive relationship, not to pressure the homeowner into making immediate decisions!

5. Get Ready for Consistent Follow-Up

Circle prospecting is not a one-and-done deal; it requires consistent follow-up to nurture relationships.

During your initial call, let the homeowner know you can be a valuable resource for them. If possible, offer to provide comprehensive market reports. It’s also possible to invite them to join your email list to receive regular updates and insights.

That said, there might be some regulations to keep in mind. For instance, you may need to obtain permission before texting homeowners.

So if you plan to follow up with text messages, check out the TCPA regulations first to avoid legal issues.

Finally, end the call on a friendly note, thanking the contact for their time and expressing your willingness to help whenever they need it.

5 Common Mistakes to Avoid During Circle Prospecting

While circle prospecting can be rewarding, some agents fail to see substantial results.

Let’s take a look at some mistakes that could be getting in the way.

1. Being Too Salesy

We know you want to boost your business, but it’s still important to avoid sounding pushy or overly focused on making a sale. It can turn off potential clients and hinder your trust-building efforts.

2. Failing to Listen

A one-sided conversation is a recipe for missed opportunities.

On the other hand, active listening allows you to understand the homeowner’s housing situation better and tailor your offerings to meet their needs.

3. Giving Up Too Soon

Don’t be discouraged if the property owners aren’t ready to sell their houses immediately.

Set a schedule for regular communication, whether it’s through emails, phone calls, or personalized newsletters, to nurture the relationship over time.

4. Skipping Proper Record-Keeping

Organized record-keeping can go a long way with effective follow-up and relationship management.

Keep track of your contact’s preferences and any important details that can help you provide more personalized assistance in the future.

5. Lack of Personal Branding

Your personal brand is crucial in establishing trust and credibility.

Neglecting to showcase your unique value proposition and expertise in real estate can make it harder for potential clients to connect with you.

Sample Circle Prospecting Script Opening

If you need help writing your first script, check out these two simple openings for inspiration:

Just Listed Script Opening

“Hello there, this is [Agent’s Name] from [Real Estate Agency]. I just listed a beautiful property in your neighborhood, and I was wondering if you might know anyone looking to move into the area.”

Just Sold Script Opening

“Hi there, this is [Agent’s Name] from [Real Estate Agency]. I wanted to reach out because I recently sold a property just around the corner, and I thought you might be interested in knowing about it. Are you considering selling your home, too?”

Key Takeaways

Circle prospecting offers real estate agents a powerful means to connect with potential clients in selected areas and build up their authority one call at a time.

The trick is to approach each call with a mindset of providing value.

But don’t just limit yourself to circle prospecting efforts.