Circle prospecting in real estate is an effective marketing strategy that involves contacting homeowners in a radius from a most recent sale or listing in the area. Circle Prospecting in real estate may also be called geographic farming in your market. Farming also involves choosing a target neighborhood and contacting the homeowners regularly.
When circle prospecting, your target house may be a recent sale, active listing, or upcoming open house, and using that activity as a way to start a conversation and establish a relationship with homeowners in the target neighborhood you are “farming.”
Why Use Circle Prospecting?
The purpose of circle prospecting is to begin building your name in a target neighborhood, relationships with the homes’ owners, and to use those relationships to drive listings and referrals in the target neighborhood.
This focus of your marketing efforts will lead to you becoming the go-to agent in your target neighborhood. It’s also a budget friendly approach as you can start your process with just one neighborhood and work out from there.
The key to effective circle prospecting for real estate is building your real estate crm database.
Does Circle Prospecting Work?
Circle prospecting does work and is extremely efficient marketing effort if you execute your circle prospecting campaign in a are data-driven way.
The best way to circle prospect is to choose to prioritize the homes you contact. The easiest way to do this is by looking at when it last transacted, then try to guess when the owners might be ready to sell.
You could also prioritize by establishing which homes in the neighborhood have the most equity gain since the owners purchased the property. Then, you can use messaging around this. Naturally, Owners with substantial equity gain might be more open to the idea of listing their home.
Ultimately, the success of your circle prospecting campaign comes down to the contacts you make, and the relationships you’ve built.
In today’s market personalization, authenticity, and honesty are the key to your messaging being received.
Delivering the right advertisement, at the right time, to the right person, is paramount.
Simply put, collecting as much data as possible in your CRM system for each homeowner. Then, use this information to personalize the approach. Your messaging should seem like 1-on-1 communication. This will make all the difference.
Where do I start?
It’s easy to setup a real estate circle prospecting campaign. Read my blog post on how to set up a real estate circle prospecting campaign