To maximize profits in a real estate business, the most important thing is to increase the number of sales. In a world with so much competition already, the last thing you want is to waste resources on a futile Ad Campaign only to find out that people you reached were not interested in selling in the first place. If you are a Good Salesman, there is a much more Cost-Effective and Efficient way of finding the people who are already motivated to sell: Cold-Calling.
Cold-Calling can be loosely defined as an act of picking up the phone and dialing all the numbers in a list to find people who are interested, in our case, to sell their properties. Though it sounds laborious, time-consuming, and somewhat interruptive, it has proven to be the most effective and widely employed technique in the business. If done correctly (and that is a very significant IF), this method will reap you benefits far beyond your expectations. Also, if done poorly, it will not only be without benefit, but it will tank your reputation and may result in some precarious conclusions.
The three main ingredients you need to start your cold calling experience are List, Script, and Rules.
To call, you need phone numbers of people who own houses, along with their names and addresses. It can be done through various platforms like ListSource, Anywho, Spokeo, or any local real estate directories, etc. No matter where you get it from, the list should be accurate and you can always have a virtual assistant “skip-trace” the numbers for you as well.
Always have a written, general script on how to go about the call e.g., Greetings, Confirming the details in the list i.e., Name and Property Address, and the intention to sell. Keep in mind that your most important goal is to get an appointment. Here is the script I most commonly use, “Hi My name is Gualter Amarelo, I am looking to buy more houses here in the city. (Pause for a second) Do you still own the house located at 123 ABC Street? Would you be open to receiving an offer from me?”
I love this script because it is to the point and makes your intentions very clear right from the beginning. The goal the first 3-4 times through your list is to just build a relationship and make your intention clear so eventually they will start sending you referrals!
This is the part where you will either make it or break it. There are some particular practices that you should adhere to if you want to get positive results and avoid adverse outcomes.
- a) Run your List against a DNC(Do Not Call) List. People who go to the trouble of putting themselves on the DNC list will also go to lengths to make sure you get penalized for violating their privacy.
- b) Pick a Good Time to call. Just because the time suits you doesn’t mean that the person you are calling will feel the same.
- c) Always keep Notes. Even if your call is not attended, note that. Note all the little details from personal to professional.
- d) Be Honest, Respectful, and Accommodative. If someone is busy, don’t waste their time, say you will call again. If they ask you a direct question and the answer is negative, give it to them instead of evading just to secure the appointment.
- e) Don’t let failure get in the way. If the calls don’t turn out to be as productive as you thought, don’t make yourself feel depressed. Keep trying on different lists and keep learning from your mistakes.
Be prepared, stay energetic, pro-active, focused, and positive to get the best results from cold calling the motivated house sellers. If you come across aggressive people, don’t engage in any confrontation. Remember, it’s not about you, it’s about them. Make everyone you talk to feel welcomed, cheerful, and at the center of your attention. Go get them!
If you are interested in learning more about cold calling I would love to invite you to join our Cold-Calling Mastermind.