How do you find buyer prospects? Every real estate agent needs to be good at this. Everyone gets tired of hearing about the sphere of influence, but the National Association of Realtors says 65% of a real estate agent’s business comes from their SOI. After taking advantage of your SOI, here are my eight tips for finding buyer prospects:
1. Build a database. Get all the names of people you know (even vaguely), put them in your system, and start reaching out to them. Get as many names as you can, and call them regularly. It works; from the first day you have a business, begin building your database.
2. Use internet leads. Why do some people not like doing this? It’s because they had the wrong expectations and viewed internet leads as referrals, and they think each of these leads is willing and able to buy right now. In reality, one out of every 50 internet leads will become your buyer, and they begin their internet search months, maybe even a year, before they’re ready to take the step to talk to a real estate agent.
These are good things because three out of four times, people go with the first agent who reaches out to them. Internet leads are your way of being notified about people who may want to get into the market soon. Don’t neglect internet leads. Another tip: You have to call them, and follow up multiple times. The stats show if you follow up slowly (the average is 1.3 times) you aren’t getting that person’s business.
3. Get listings and market well. It’s very simple; buyers will call, and some will want to buy your property, but most won’t. That’s fine because now you have a potential buyer prospect.
4. Prospect in your local area. Host an open house and knock on doors. NAR states that most people would love to choose their neighbors, and most neighbors know someone who might be interested in the house. Ask the neighbors if anyone nearby or in their lives wants to move. Supplement your prospecting with postcards and other marketing materials.
“Get as many names as you can, and call them regularly.”
5. Try the lease-purchase angle. If you’re not taking advantage of this right now, you’re missing the boat. Many people don’t think they can get loans, but they want to live in a house. With marketing tailored to that, we’re getting a flow of buyers.
We know of an organization that will pay you the same commission (or similar) as if you were working with a normal buyer, but you’ll be placing them in a lease-purchase situation, and they pay you upfront. Our lenders are pre-approving and pre-qualifying about one in every five of these buyers. Email me if you want to learn more about that company.
6. Find a target market. A geographical target market is a great way to get business, but it doesn’t have to be a geographical target. Any group or hobby where people get together over something they have an interest in works. This could be soccer, golf, knitting, painting, photography, a church group, etc. You can easily find groups through social media. People want to work with those they know, like, and trust, so find a way to reach out to them but not bombard them with advertising.
7. Use social media. I already touched on this, but getting in touch via social media is a great way to connect with people. People are now using social media the way they used to do live networking. Now you can sit at home, network, and build relationships.
8. Routinely wear your name badge. I’ve learned by experience and through speaking with other real estate agents that you can gain a few transactions every year by just wearing your name badge around and being open to conversations.
I hope you get a ton of buyer business from these tips. If you have questions about buyer prospecting or anything else, call or email me. I would love to help you.
