Circle Prospecting: 12 Easy Strategies (+ Sample Scripts)

Male,Real,Estate,Broker,Shaking,Hands,With,New,Property,OwnersTakeaways

  • Circle Prospecting is an Imperative Marketing Tool: A lead generation strategy implementing various points of contact in a targeted neighborhood to help grow your long-term clients.
  • Help Communication Flow Naturally: Be prepared with various scripts for communication to help you feel confident in your cold calls.
  • Getting Started is Fairly Easy: Below are 12 steps to start planning your marketing strategies and how to incorporate them to maximize your impact.
  • There Are Some Common Questions: We’ve researched, found a few frequently asked questions, and answered them for you! 

5 Circle Prospecting Scripts to Use

The term, circle prospecting, is a sort of metaphor… imagine drawing a wide circle around a home or property you’ve recently sold, listed, or closed and connecting with neighboring homeowners within a targeted region to find new meaningful leads. 

It’s a great strategy to implement and help establish yourself as a proven expert in the designated area. Sound a little daunting? I get it. Cold calling and introductory emails can be intimidating for most, but once you’re in the practice… it’s easy and feels natural. 

In fact, the more personable and genuine you are the easier it is to drum up leads organically. Here’s an article with templates on how to write introductory emails. Below are a few scripts to keep in mind to help you feel confident in your cold calls and allow conversations to flow with ease. 

Here are five scripts tailored for different scenarios:

A,Real,Estate,Agent,With,House,Model,Is,Talking,To1. If you’ve just sold a property: 

Your tone and goal: Always friendly, genuine, personal, and honest in tone; your goal is to inform your contact of a recent sale in the area and find out if they also have an interest in selling (or know anyone who might). 

Script: “Hi, this is (Your Name) with (Your Real Estate Agency). I hope you’re doing well. I’m calling because a home just sold in your neighborhood on [Street Name], and there is currently a lot of interest in the area.  We sold for [Sale Price], which is great news for property values in the area. Wanted to reach out and see if you or anyone you know has been considering selling their home in the near future?”

Follow-up Question: “If not right now, would you like to stay up to date on how property values could affect your home values for when the time does feel right?”

2. If you’ve just listed a property

Your tone and goal: I find these to be the most exciting for your neighborhood prospects. A way to engage is to set up an open house and invite the neighbors. Casual, but professional, approach this as if you would a friendly colleague. Usually, you’ll pique interest at a minimum… who doesn’t love a party?! The goal is to find potential buyers and drum up word of mouth.

Script: “Hello, I’m (Your Name) with (Your Real Estate Agency). I recently listed the property on (Street Name), maybe you know it? I’m hosting an open house (Date & Time) and wanted to invite you to stop by if you’re available. It’s a (X)-bedroom home, and we’ve listed it competitively at (Listing Price). Would you be interested in stopping by or learning more about the listing or the current market?”

Question for more engagement: “I love this neighborhood, curious if you know anyone who has been looking to move to the area. Happy to connect with them as well! “

3. Real estate market trends and updates 

Your tone and goal: We’ll talk about your varied points of contact for most conversions, but this is one way to place yourself as a trusted expert in the specific neighborhood you are “farming”. The goal here is to establish your reputation, and build your relevance as the go-to real estate agent in your “circle”, and I suggest a newsletter or email for this one, but go for a call if you can!

Script: “Hi, this is (Your Name) from (Your Real Estate Agency). I’m reaching out, because I came across some interesting market trends that could benefit homeowners in your neighborhood, and wanted to give you a quick update. 

Over the past few months, we’ve seen a significant increase in home values, (percentage). Would you like to know more about how this could affect your home value? Happy to get on a call to discuss more!  

Act of service: “Would you like a free home valuation to see where your property compares?”

4. If you have a group of buyers looking 

Your tone and goal: If you approach this with curiosity and seek information on behalf of your clients, you’ll start building a friendly, mutually beneficial relationship with potential seller leads. The goal here is to find potential sellers for the buyers you are looking for in this particular area. Again, honesty is the best policy. 

Script: “Hello, I’m (Your Name) with (Your Real Estate Agency). Thanks for taking my call! I’m currently working with several buyers who are very interested in moving to your neighborhood, understandably. 

Because of the demand, I’m doing my best to find more matches and find the right properties for my clients. I’m reaching out to see if you or if you know anyone who might be considering selling their home in the near future?”

Relationship Builder: “If you need some time to think about it, mind if I follow up in a few days? Also, if I find more gems in the neighborhood that decide to list, happy to keep you posted on comparative home values so you know how your home compares in this competitive market.”

5. Follow-up after an open house

Tone and goal: I like to lead with gratitude in these, and always want to get feedback on the property. If leads decide to pass on this, it’s always good to know why. But, the main goal here is to get one step closer to finding your buyer. So, engagement is key.

Script: “Hi, this is (Your Name). We met, and I wanted to follow up on our recent open house at [Address]. We had a great turnout and some interested buyers. I’m curious if you have any questions about the property or if you’ve been considering any real estate moves yourself?”

Follow-up Question: “Did you get a chance to see the home? If so, what did you think about it compared to others in the area?”

12 Tips to Establish Your Circle Prospecting Effectively

Real,Estate,Agent,Showing,A,Family,A,House,,Closer,InAnytime you implement a new marketing strategy it requires careful planning, research, and repeatable implementation if you are to be successful in it and make the most of your time spent. 

I think it’s best to manage your expectations at the outset and know that not every call is going to result in a lead. Most of the time, it can take up to 5 points of contact before getting a response, and you don’t want to come across as spam. 

That’s why we put together this list to help you create a plan you can stick to and be more likely to establish yourself in your “circle” as a real estate agent homeowners can trust with their investment. 

1. Understand Your Market

Before making calls, research your neighborhood thoroughly. If you want to be the expert in your neighborhood, you have to put in the time. Get familiar with average price per square foot, recent sales, recent lists, home value increases/decreases, turnover, know the schools, restaurants, festivals… know as much as you can. 

How you do it: Stay on top of MLS, and any updates. Hit the pavement, walk the neighborhood, eat at the local restaurants, shop the local shops, and talk to people. Stay focused on a small area, then expand your knowledge.

2. Create a Small, Targeted List

Take what you have learned, and focus your newfound expertise to create a list of homeowners who could benefit most from your knowledge. Create a list of homes that were recently listed, and sold. Create lists of houses with specific amenities. What you are doing is helping establish your points of engagement for personalized email marketing, and to prepare for cold calls with purpose. (Here’s an article to start your email marketing strategies, insert recent one) 

How you do it: Use platforms like Zillow, Redfin, or specialized real estate software to generate and refine your list of contacts.

3. Vary Your Methods of Outreach

We talked about this a bit already, but you want to create a rotating system for communication with prospective buyers and sellers. The deal happens in the follow-up, but it feels more organic if there are multiple ways of connection. Repeatedly calling someone could get you blocked, or on a Do Not Call List, double check that before you call. 

How you do it: Mail open house invitations, cold calls, an email newsletter with market updates, or host a booth at local events, this is your chance to get creative!

4. Use a CRM System

Find a user-friendly CRM to help you keep your lists organized preferably one that has an automated follow-up email system to implement. So you stay up to date with your leads efficiently. 

How to do it: A few CRM systems I can recommend are Follow Up Boss, Zurple, and CINC. Here’s a more in-depth list if you want more options!

5. Personalize Your Approach

This is non-negotiable, and why your research on the market and who you are talking to is paramount. To be successful in this industry, you have to build relationships founded on trust that you have your clients’ best interest at heart, and that begins in the very first interaction. 

How to do it: Use your CRM to record details about each prospect and their property to reference in future communications.

6. Develop a Script Library

We’ve already gotten you started with the few above, but the more experience you get in circle prospecting the more your needs will expand. Vary your scripts for different scenarios so you feel prepared for all interactions. 

How to do it: Regularly update your scripts to reflect market changes and feedback from past calls.

Couple,With,Real-estate,Agent,Visiting,House,For,Sale7. Listen More than Talk

When engaging with potential clients, it’s imperative that they feel you are there to help them and not the other way around. If you ask more questions and simply listen, you’ll be better equipped to identify needs and learn a better sense of how to meet them. Overall, this builds trust and genuine connection.

How to do it: I often listen, then will give a summary of what they said to reassure that I am actively listening, and then where possible offer solutions or times to expand on our conversation at a later date.

8. Offer Value First

In your first engagement, if there is an offer you can make that is free or show that you’re primary focus is to help them or others you’re less likely to come across as “salesy”, which is off-putting at best in a first encounter. 

How to do it: Prepare a list of market insights, offer a free home valuation, offer knowledge on market trends, and invitations to open houses.

9. Follow Up Consistently

Consistent follow-up efforts make the difference in your ability to stay relevant and competitive in a particular neighborhood. But, remember to vary your efforts in the ways we mentioned above. 

How to do it: This is where your CRM is indispensable. Set reminders for follow-up, automate where you can, and get alerts for industry news that could be beneficial for your potential leads. 

  1. Adapt to Feedback

Objective analysis and adjustment are always beneficial. You don’t have to be perfect right out of the gate but definitely pay attention to what strategies work more often and the response you get for each method of communication. Adjust where necessary! 

How to do it: After each call, note what worked well and what didn’t, update your CRM lists, and stay creative. Think outside of the box when you adjust your strategies. 

11. Leverage Technology

There’s no escaping it… technology is an asset in helping you save time, and it’s best to get comfortable with it. Stay abreast of all the different tools available, speed up your interactions and keep you organized. 

How to do it: CRMs offer a great hub of technology to keep you in a seamless workflow. Social media technology to help you create reels. Use automated offers for list builds. AI-powered text messaging is available, but do make sure you are making personal connections. 

12. Stay Positive and Persistent

There is no doubt about it, you will face some rejection. Don’t worry about it, if you can, spin it to know that it’s better to get a “no” than a lack of response. It’s best to know where to focus your time and energy. So collect your “no’s” and move on… you’ll be that much closer to your “yes”.

How to do it: Manage your expectations, be realistic, don’t get attached to the outcome, and learn to love the process. Confidence is contagious, so just keep going. 

Circle Prospecting FAQs

Female,Real,Estate,Agent,Offer,Home,Ownership,And,Life,InsuranceCircle prospecting can feel overwhelming when you’re getting started, and there is no strict way of conducting your efforts with a guarantee of success. 

But, if you have any doubts here are some frequently asked questions and detailed answers to help you succeed:

What is Circle Prospecting?

Circle prospecting is a strategy for identifying potential home sellers and buyers by focusing your communication efforts in a targeted location. Essentially, this method of building your client list helps to establish you as an expert in a particular area.

Why It Works: This level of engaging homeowners piques curiosity in their investment, and the knowledge you bring to the table has an immediate direct impact on the knowledge of their property. 

How Do I Keep the Conversation Going?

This has to be your main goal throughout every interaction, keeping the conversation going. So let’s be clear, circle prospecting is more of a long game in relationship building with clients, and you want to keep the conversation going on many levels. Here are some tips:

  • Ask About Their Situation: Quickly mention you are reaching out because their neighborhood has a lot of demand at the moment. Then ask them more about their neighborhood and their experience there. Ask them how it’s changed over the years from their perspective. 
  • Become the Source for Market Insights: Give your knowledge of the area and what neighbors are seeing in their investments. This will prompt homeowners to naturally reach out to you when they have more interest in selling. Another reason to send follow-up emails and newsletters. 
  • Get Involved in the Neighborhood: Be present for events, and show genuine interest in the community, have relatable conversation starters outside of real estate to help establish genuine connection and trust. You can always still ask if they have long-term plans for their house or neighbors, and let them know you’re always there to help.  

Why Should I Be Circle Prospecting?

In my opinion, while this can be a more time-consuming method of lead generation it is also the best for establishing a long-term successful career in real estate. There are a few reasons why:

  • Genuine Lead Nurturing: It helps you establish a competitive edge by identifying potential leads before the thought of selling was ever present. 
  • Build Relationships: This will help you build a better business in referrals, by establishing your reputation in a particular neighborhood you’re more likely to be thought of first when people need recommendations for agents. 
  • Increase Presence: Familiarity breeds trust. If you are visible in the neighborhood, and your name, brand, and work ethic are respected in an area you are more likely to be top of mind when buyers and sellers are ready to make a move.

How Often Should I Circle Prospect?

After you’ve established your methods of communication, analyze response times. Over time you’ll notice if people are more likely to respond instantly to certain offers, or if they take a few weeks. That’s when you can start to notice trends and adjust your frequency of going out. 

It also depends on your resources, but with an effective email marketing system, you could get more reach more frequently. Here’s an approach I suggest as you’re getting started: 

  • Weekly Outreach: Target a small area each week to focus on for initial engagement. It could be a street or block to start with, and scale from there to learn more about the neighborhood response.
  • Monthly Follow-Up: Find a reason to be in touch with an offering to show that you still care and are there to help anytime.
  • Adjust Based on Response: If you notice you have potential leads that are more responsive than others, that’s when you start prioritizing leads and adjusting your lead lists with who to contact more frequently. 

What If People Ask to Stop Calling?

It’s perfectly reasonable for someone to ask for less or no communication moving forward and should be respected. Respond with complete understanding and gratitude for taking the call in the first place. 

  • Be Professional: A no now could be a yes later if you remain professional and polite.
  • Move On: Don’t stress over a prospect who doesn’t want your help. It’s truly a part of the job and frees you up to focus on finding leads that want to work with you.

What Platforms Can Help with Circle Prospecting?

There are several platforms that will give you all the tools you need to be successful in your prospecting. Here are a few: 

  • CRM Systems: A necessary tool for all of your client engagement. 
  • Automation: Automated follow-up can save you tremendous amounts of time. 
  • Farming Software: KeyLeads and Vulcan 7 are two platforms that can help you target leads in a specific area that may be more motivated to sell. 

Summary

Circle prospecting can be a big undertaking at first, but a rewarding one. Stay positive and persistent and remember that you are setting yourself up for long-term success. With aloof of these strategies you will set yourself apart from the competition by building steadfast relationships within a community. 

AgentAdvice Tip: If this doesn’t work, try checking out this list of real estate lead generation software tools.

Chris Heller Headshot

About the Author

Chris Heller brings 27 years of experience in real estate. Chris serves on the AgentAdvice Editorial Board and is the Chief Real Estate Officer at OJO Labs. Chris brings deep expertise having held influential industry positions including CEO of mellohome and former CEO of Keller Williams Realty International.

Last Updated: 6/21/2024