The Ultimate Guide To Real Estate Cold Calling
Successful Real Estate Scripts, Cold Calling Lists, and a Free PDF
You sit down at your desk and open your email. You're greeted with a "new lead" message coming from your website. Initially, you're excited by the prospect of someone showing interest in a house for sale. You are a real estate agent, and you have built your career around selling homes. But, as you open the email and look at the phone number, the excitement fades. You feel the dread and uncertainty of how you are going to connect with this lead.
You think, "Am I the only real estate agent after years in the business who doesn't know how to cold call leads?"
You are not the only real estate agent that doesn't understand cold calling leads.
In fact, some studies suggest that 80% of failure in sales in one's first year can be attributed to call reluctance. And 40% of declining sales in veterans is due to call reluctance as well (Source).
In this guide to successful real estate cold calling, you will find the best cold calling script of all time. You can download the script as a PDF (free). You will learn phone scripts, cold calling statistics, overcoming fear of the phone, objection handling, and lead generation for cold calling lead (cold calling lists).
Real Estate Cold Calling Script - Free PDF
Let's Define Successful Cold Calling
You will notice that we are not using the traditional definition of cold calling in real estate. Even the example above may have you questioning if we are indeed discussing calling an unexpecting prospect.
The strong tension between the debate of if cold calling is dead or not is partly due to varying definitions of cold calling.
In fact, both approaches work. They both can lead to real estate prospects. However, the debate lies in if it is worth your time.
The "spray and pray" approach to cold calling in real estate is nothing more than acquiring a list of homeowners and calling to land a meeting. This approach to sales calls is completely dead. Calling someone who has not displayed any level of intent or does not practice in an adjacent industry is futile.
My approach to cold calling is focused on low-intent customers and those who have access to customers with intent.
Opening the phone book and making a random call is ineffective, but talking to a new home builder, a buyer who downloaded a guide, or someone who clicked on an ad is a productive cold call.
I see clients in four distinct stages:
Cold: Does not know you or has little familiarity with you or your business but has potential intent.
Goal: Get a meeting
Prospect: Knows you but hasn't selected to work with you yet.
Goal: Close the prospect of using your service
Client: Working with you but hasn't found a house.
Goal: Sell them a house or help them sell their house
Past Client: Transaction complete
Goal: Earn a referral
For this article, we are focusing on cold calling; therefore, they don't know us or have little awareness of our business.
However, there is a logical purpose for us to pursue the lead.
Cold Calling Statistics
To appreciate the value of cold calling in real estate, let's dive into the numbers. The question at stake is, "what is the evidence that cold calling is effective?'
According to research at The Keller Center, in real estate, cold calls are answered 28% of the time. Of the people that agents speak to, 1.7% turn into appointments or referrals. This would be for traditional cold calls with 1 call attempt.
But here is where it gets interesting. Another study states that cold leads will say "no" four times before saying "yes." And only 48% of sales reps will make more than 1 call attempt. Think of the possibility of making 4 calls versus opting for the easy road out and making 1 call.
Also, 75% of clients want sales reps to make between 2-4 attempts before giving up. This means that when they tell us "no," they still want to be pursued. Our intrinsic need to be desired doesn't only relate to our personal life. It matters in business too.
The data also suggests that a successful cold call lasts 5:50 versus unsuccessful cold calls that lasted 3:14, and the sales rep should speak 50%-60% of the time. Therefore you don't want to dive into discovery; your goal is securing a meeting. Not needs assessment.
When to Cold Call
Ok, so you're coming around to the idea. Maybe you're not sold on cold calling yet. That's ok! Once you see the script, you will see the value. That said, when should we be making these calls?
There are two considerations at play. First, there is the science of when to call, but second, there is also the time that works for you.
Let's explore!
The best time to cold call is between 4:00 PM - 5:00 PM or between 11:00 AM - 12:00 PM. These are the times you are most likely to reach a prospect. And if the best days of the week are Wednesday and Thursday.
So, this is our ideal target. I also know the ideal time for me to work out is in the afternoon; however, my desire to work out in the afternoon is as low as the dead sea. Therefore, I workout in the morning.
What does this have to do with cold calling?
Ultimately, you should cold call when you have the most energy. If calling between 9:00 AM - 10:00 AM on Fridays works best for you, do it then. Your results might be slightly lower, but at least you're doing it.
Done beats perfect when cold calling.
Call Reluctance
No guide to cold calling would be complete without having a strategy for the greatest barrier to making calls (or prospecting in general).
Call reluctance emerges from our deep desire to be liked. For most people in sales, this is a limiting belief that needs to be addressed. Believe me, call reluctance never really goes away. Instead, we learn to live with it and begin to actually enjoy overcoming these feelings when we see what is on the other side of our limitations.
Most real estate agents are customer service masters. These are people who are empathic and caring. That is a tremendous superpower. However, when it comes to calls, we also need to explore our persuasive sides.
Like anything, this is a skill. Treat call reluctance as a skill you are learning to overcome and keep a growth mindset. Tell yourself, "I'm scared, but I'm going to do it anyway."
I'm not going to become a top chef by reading cookbooks. I need to cook. Overcoming call reluctance is the same. It's a skill that can be learned through reading and watching videos. These can help, but you need to make calls to overcome this hurdle.
The best approaches to overcoming call reluctance when dialling for dollars are assigning a value, preparing your environment, and speaking to a friend.
Assigning a Value
This is the best trick I've ever used for getting motivated to make calls. All that is required is a little math, and you will see how each call is money in your pocket.
Let's say that it takes 50 calls to set a meeting, and it takes 3 different client meetings to secure a client. Furthermore, your average commission is $8,000. Well, that means that each cold call is worth $53 to you.
Whether the customer says "yes," "no," or "never call this [insert expletive] number again," you still made $53 on each call.
In my experience, when calling people who have signed up on a website or a company, these numbers tend to almost always work out to $25 - $90/call. The range depends on if you are calling a Big Fish (see below), your commission rate, and the size of the deal.
For straight figures, I like to stick to $50 per call.
Setting Up Your Environment
This involves making sure you have the right surroundings for your cold calling. There are a few hacks you can use to improve your feelings about cold calling.
Stand: Anytime you make cold calls, make sure you are standing with a straight back and open body language. This increases your confidence instantly.
Music and Videos: Before your calls, listen to motivational music and videos. This will pump you up and get you in the mindset of making calls.
Essential Oils: Yesware recommends using essential oils to improve your mood for cold calling. (I recommend peppermint oil as it's shown to be stimulating).
Display your Number: Above, you calculated your number, but this number on a post-it note in front of your computer. I have a $50 post-it on my screen for calls.
Exercise: Workout before your calls. This can be a short run, brisk walk, some pushups in your kitchen, or a trip to the gym. This has been proven to increase your energy and self-image following the workout.
Speaking To A Friend
This is the easiest trick when making calls. And it could be one of the most effective tools you can put into practice anytime you are calling leads, prospects, or even clients.
It's a mental switch you use before making the call. You simply picture the person on the other line as your best friend. It's like you are calling an old pal to catch up.
This means the person you are calling is looking forward to your call. They are not your adversary.
I use this technique before and during the call. As I punch in the numbers, I do so with zest, thinking of having the chance to connect with a friend. During the call, I smile, and my tone is confident yet friendly.
This works like a charm!
Cold Calling Lists for Real Estate
When sourcing cold calling lists, make sure you do your research. An untargeted list will result in poor outcomes and frustration.
That doesn't mean that everyone on the real estate list will be a bonafide customer. You will have some unqualified people, fake phone numbers, and wrong fits for your business, but you still want to spend time upfront sourcing your real estate cold calling list.
Where do you find real estate cold calling lists? Real estate lead generation services, real estate lead generation websites, for-sale-by-owners, expired listings, freelancers, or running your own real estate ads on social media.
Real estate lead generation services and software include Vulcan 7, REDX, Agent Circle Prospecting, Prospect Boss.
Real estate lead generation websites basically include any IDX enabled website provider (BoomTown, CINC, Real Estate Webmasters, etc.).
For sale by owner (FSBO), leads and expired listings can be sourced through researching your geo-farm area, or you can acquire lists from service providers.
Freelancers such as those you can find on Upwork or Fiverr are great for finding companies in select locations. This can work great if you don't have the time to create a list of prospects in your area. Personally, I find these work best for Big Fish accounts (see below).
Running your own social media ads can be very effective, but you need to have the right value trade for a phone number. There are websites that prompt forced signup to view listings. This can work, but the quality of these leads has deteriorated in recent years. I recommend creating a high-quality lead magnet that is provided in exchange for an email and phone numbers. Lead magnets can be market reports, guides, or any item of value. If your website doesn't have the capability to upload a lead magnet, you can use landing pages.
Big Fish Leads
I'm not an accomplished Fishman, but I could imagine that the result of catching 4 small fish in one day or one massive tuna would have different results. The big fish can feed your family for a month, where the small fish make a nice few meals.
In real estate, Big Fish are those customers or accounts that have the potential to make you considerable income.
For example, a new home builder or condo developer can offer several listings. So can a foreclosure lawyer or foreclosure officer at a bank. Real estate investors and flippers can offer multiple deals in one year as well.
Another Big Fish could be a large luxury sale that is on your horizon. Also, renovations companies, commercial real estate brokers and more.
Everyone should have a list of 25 Big Fish accounts, and you should incorporate them in every cold calling list.
They will not convert overnight, and most will never convert; however, this is not a numbers game. It is a game of follow-up, deep research, and continuing to provide value for months or years.
My favourite technique for landing Big Fish is extremely deep online research (specifically LinkedIn) to know everything about the lead. It's also important the lead you are targeting is the decision-maker. Or someone who can introduce you to the decision-maker eventually.
Also, for Big Fish, your follow up game needs to be wild and unique. After you get voicemail for the 3rd time:
Send a gift basket to their office with a note that asks for a 5-minute call.
Send a pill bottle with candy to a builder asking if they are "sick" of their current representative.
Get creative!
That is the level of follow up required, and persistence combined with research will pay off.
Cold Calling Script: The Rules and Goal
Now let's explore the perfect script for cold calling in real estate. Before we look at the script, it's important to understand the rules and goals.
The call rules are overarching concepts that you need to be aware of while making these calls. Breaking the rules means lowering your probability of success. If you use our math above and aim for each cold call working out to $53, then breaking the rules will cause that number to drop off (or become non-existent).
The first call rarely leads to an appointment. It requires 4 attempts on average, but aim for 8 attempts since you aren't average. For Big Fish, never stop until they tell you to beat it (and still try a few more times after this).
Conduct your research. Spend 3 minutes looking the person up on LinkedIn. The reason I prefer LinkedIn is that it's their personal digital business card. Facebook, Instagram, and others feel more personal. I want this to be a friendly but professional call.
On the first call, don't build rapport, qualify, or ask too many questions. This is off-putting and feels disingenuous.
On the 2nd call onward, mention a hobby, comment they made, or something that made you think of them. Build rapport on the 2nd call onward.
Explore using the most important word in sales. (Hint: the word is “because”)
Record your calls. This will be painful to hear, but you will learn 10x faster than if you rely on your" feeling" or memory.
Write down which words resonated with them, any hot button issues (pain points), and hobbies (anything personal)
Talk 50%-60% of the time. You are calling them, so don't worry about taking more than the lead. A quiet lead is not a bad lead. The talk ratio should be lower in discovery. For a cold call, you need to do the majority of the talking.
Don't waste their time. Get on the phone and get to the point.
Integrate social proof on cold calls. How did your solution help someone else in a similar position to your lead?
The nuance of changing a few words will have a shocking impact on conversion. Stick to your script, then test with different words. Don't wing it. There is no learning in throwing darts with the lights off.
The goal of your cold call is simple and direct: to secure a meeting. That's it! Don't use this to qualify, build rapport, or conduct discovery. These steps are part of your meeting stage.
The whole point of cold calling is to secure a meeting.
The Best Cold Calling Script Ever
Let's get to the goods! The presentation of this script will not just be indicating the words to use. I find scripts hard to follow blindly. We will explore why we use certain phrases and the context for the flow.
Can you make adjustments to the script? Yes, this is a skeleton that you can adapt to your needs. That said, stick to the general flow for the best results.
The Opener:
"Hi (name), this is (first name, last name) with (company). How have you been?"
Context
Using your first and last name is professional, and by providing your company name, you are establishing credibility.
"How have you been" is very effective. This uses pattern interrupt as most people ask, "how are you." This slight difference causes them to think, which decreases the likelihood of them having a reflex response.
This is also how a friend would open a conversation, and this is a friendly call.
Don't ask if it is a bad time. Studies suggest that you have a 6.6x higher result using "how have you been" versus "is this a bad time."
The Reason (Pique/Pain/Value + Proof/Close):
There will be 2 examples below. The first is a standard real estate client, and the second is a Big Fish. In this section, you want to pique their interest, hit on a pain point, show them value, then close them.
Buyer: "I noticed you were looking at 123 Main street, and there is some news about this home." (Pique)
Big Fish: "I noticed the competition between you and COMPANY is fierce, may I make an observation?" (Pique)
Buyer: "This property sold in [time] and let me tell you why. The buyer had the inside scoop, and they saw this the moment it hit the market." (Pain)
Big Fish: “You have a great product, but to beat the competition, you need more than a fantastic product." (Pain)
Buyer: "You need a real estate agent who has a proven system for getting buyers into the perfect home in this fast real estate market. In fact, I just helped a buyer get into a home in this neighborhood last week, and they couldn't be happier." (Value + Proof)
Big Fish: "You need a top real estate team that knows how to market homes in new ways and isn't afraid to call buyers out of the blue, kind of like I'm doing right now with you. In fact, I just helped [other company or seller] with a similar approach, and they received [result]" (Value + Proof)
The Perfect Close Questions
Initial Question: “Does it make sense for us to X so that Y?“
“Does it make sense for us to schedule a 15-minute meeting so that we can chat about your buying criteria and I can send you the best deals as soon as they hit the market?”
“Does it make sense for us to schedule a 15-meeting with your team so we can look at what is most important to you when evaluating your real estate team?”
Follow-Up Question (if they reject the proposed next step): “Ok, (name)! What is a good next step then?”
Context
This is your monologue (don't be afraid of a monologue in cold call). This should be more than 25 seconds but less than 45 seconds. Practice the time. It's important.
Pique: You start by piquing their interest. This makes them want to keep listening.
Pain: This is the struggle that they are likely facing. More research beforehand helps you understand their pain points on a deeper level.
Value + Proof: Here, you show them how you are different and how you can remove their pain. You will layer on social proof to indicate that they could have these results as well.
Close: This two-part close is the most effective closing technique you can learn in sales. It works in almost any context. It is centered around asking for the next step and, if rejected, ask them to propose the next step.
Don't ask them, “if maybe they would like to meet.” This is passive, and you will get steamrolled. Instead, make a suggestion. After all, you are a professional, and people want to be led by the right person.
Pro Tip: You will notice we are using pain avoidance and not pleasure-seeking. For example, losing a house vs. getting a house. Don't use pleasure-seeking. Pain avoidance is a stronger driver for prospects that are moving toward pleasure.
The Objection (optional):
The main objection (learn more about objections) you will face in cold calling is "I'm not interested" or some variation of this objection. Other examples of this same objection include
"We are all set."
"We are happy with our real estate agent."
This is not them saying, "we have already bought," or "we are not buying anymore." These are disqualifiers, and you should avoid pursuing the lead any further.
There are three objection handlers that work well.
"I agree. To be honest, I wouldn't be interested either off the bat. Let me ask you a question. If I could show you how ________ (avoid pain), would it be worth a few minutes of your time?"
"I know that (name), I mean if you were then you would have called me! If I could show you how ________ (avoid pain), would it be worth a few minutes of your time?"
These three objection handling techniques are effective. They all start by agreeing with the prospect. When dealing with objections. Always agree with them. They are expecting a rebuttal or for you to push back. Instead, you are going to agree with them.
You reestablish value by experimenting with another pain point. You can re-state the original pain point, but I like to use another to see if this hooks the lead.
Use humor when handling objections. Remember you are dealing with a friend. It's ok to have a laugh and draw attention to the fact that this is a cold call.
Finish the handler by asking for the meeting again (you will need to ask three times)
If they object again saying they are not interested or it is not worth their time. You then pivot and downgrade your ask. People have trouble saying "no" three times.
"I get it (name), you probably get a lot of these calls. I'll tell you what, why don't we meet for 10-minutes over Zoom instead of 15-minutes in person. If nothing comes of it, at least you will have my secrets, and you can use them during your home search."
This is downgrading the ask. Most people have trouble saying "no" again, and you are making it easier for them to say "yes" with a lower commitment.
The Wrap:
If they agree, great! You then make one promise to them. For example,
"I'm looking forward to our meeting. Before the meeting, I promise to send you [comparable, listing, information, my contact info, anything]"
Then send your follow up email right after the call with the item you promised. This shows you are reliable and prompt.
However, if they didn’t agree to a meeting and continued to say that they are not interested, you will proceed to get a commitment to stay in touch. Remember, you will need to reach out on average 4 times before they agree to a meeting.
"No problem (name)! Well, why don't we stay in touch as time goes on? Things can change, and I want to make sure you are always in good hands. Does that work for you?"
Now you exit the conversation but not before getting permission to stay in touch.
If the lead says "yes," then this call was a win. You now have another potential opportunity to add your database. Congratulations!
If the lead says "no," then this call was still a win. You have now removed a person that does not have any interest in doing business with you in the future. You now won't need to spend the time following up with someone who will never buy.
Post Call:
After the call, always send an email. This will contain your promise, if you secured the meeting, or simply be thanking them for their time if they are not interested.
If the call resulted in a meeting or permission to follow up, then you take the following notes to prepare for the next call or meeting.
Hot button: Make a note of any important items and any phrases that resonated with them.
Identify the need: Determine if you know their need at this stage in their journey (you won't always know after a cold call)
Personal Items: Did you get any hobbies, kids' names, perspectives, thoughts, etc., from them? If so, make a note of this; you will use it in your following calls and meetings.
Next follow-up date: Put your next follow update in the calendar.
What Happens If They Don't Answer?
This is more common than not. The good old voicemail comes through again, and you start to wonder if you should just take the hint and not follow up.
First off, leave a voicemail and be complete with your reason for calling. Don't play games, leave cryptic messages, or not leave a voicemail.
Do you know who I never remember? The person that doesn't leave a voicemail. Do you know the person I never work with? The person that leaves a cheesy message telling me to call them back ASAP. Don't play games.
The process when they are not answering is two-fold. Leave a complete voicemail stating your name, company, and reason for calling. Then indicate you will be following up with them. Leave your number so they can return your call but keep in mind that they will not be returning your call. Instead, let them know you will follow up in the next few days and then follow through with your promise.
Next, send an email. Always follow up a voicemail with an email. This is two touches and cements your name in their mind. Real estate is all about being top of mind, so make sure you don't miss the opportunity to follow up the voicemail with an email.
No response after multiple attempts? Hit send on the breakup email.
The breakup email is a short note that indicates you will be closing the loop. This works well as the lead will either respond (usually saying they have been busy) or they will not respond, and you can take them off your follow up list.
Subject: Closing The Loop
Hi (name),
I'm sure you are getting tired of my calls and emails. Heck, I would too. I just don't give up easily in sales. I fight to get my clients the best prices, and I fight for their business.
That said, it seems like you are not interested.
Just letting you know, I'll now close the loop on your file.
All the best
(name)
This is the moment of truth. If they respond (which many do), you are back in the game. If not, then it's on to the next one!
If you would like to learn more about cold calling, I recommend exploring other techniques out there like Mike Ferry's and Bryan Casella's approaches. Also, seek out B2B cold calling strategies. The premise of our cold calling script is built on the B2B cold calling structure.
Sources:
Gong, Close, Sales Hacker, Mr. Inside Sales