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It’s nerve-wracking and uncomfortable.
Cold calling motivated sellers.
You pick up the phone and talk to someone you’ve never met before, you try to tell them about what you do without them hanging up, and you try to convince them to work with you.
The whole thing would make even the toughest person cringe.
But it is possible to become an expert at cold calling, and it can generate tons of leads for your business (if you practice and perfect your method). To help you get started, here’s our guide to cold calling motivated sellers.
And, we’ve included a couple of scripts for you try out at the bottom of the article!
Let’s get started!
Should You Cold Call?
It’d be easy to say “no” to that question — there are many other perfectly effective marketing strategies that don’t require you to stray so far outside of your comfort zone (SEO and direct mail, for instance).
And who knows? Maybe you will decide to skip the whole cold calling train and opt for other real estate marketing strategies.
But maybe you won’t… and there are a few reasons you should at least consider the advantages of cold calling motivated sellers.
Here are a few benefits.
- Most of your competitors probably aren’t cold calling people (because of the reasons mentioned above). So if you do cold call, you get a unique marketing advantage.
- Cold calling is less expensive than most other marketing options. If you have a small budget, then this is a great way to find leads without breaking the bank.
- If you pull a good list and scrub it well so you only call the most promising leads, then cold calling can be about 10 times more effective direct mail.
It’s at least worth a try, right?
But no pressure :-)
Otherwise, stick with me.
How To Create a List For Cold Calling
Before you can call anyone, you’ll need to get the motivated seller’s phone number.
It’s one thing to pull a mailing list with addresses and names, it’s another thing to find the phone numbers for those same people.
(If you do need help pulling a list, check out ListSource — that’s a common tool that real estate investors like to use for creating lists and finding potential leads)
Maybe you have a list of absentee owners or maybe you have a list of people going through probate. Whatever the case, you have a list… and now you need phone numbers.
(You can also consider driving for dollars to add more unique addresses to your list that other market competitors might be overlooking)
To get the phone numbers of people on your list, you’ll probably want to pay for an online tool to help you out (or a cost-free way is to go scrounging through an old-school phone book and match up names with numbers).
You can use a tool like Zabasearch. Just type in the name of the person you want a phone number for, specify which state they live in, and then use their middle initial and other unique identifiers to determine which profile is the right one.
Then click “View full profile” and sign up to get all the info for that person. Zabasearch charges $0.95 per profile that you access.
But that’s just one tool out of tons of different tools that help you find phone numbers for your motivated seller leads. There are lots of others and it’s worth your time to do it a bit of research and figure out which service will provide you with the best bang for your buck.
Now that you have a list of phone numbers, let’s talk about some tips for actually getting on the phone and pitching your service.
Tip #1: Be Honest and Transparent
There’s a lot to be said for being honest and transparent in your salesmanship.
And that’s even truer when it comes to cold calling motivated sellers. As it stands, only about 18% of people trust salespeople. Ouch.
So be yourself when you cold call prospects. Be honest and transparent about why you’re calling and you might just build a meaningful connection where many other salespeople have failed.
Tip #2: Steal Yourself For Rejection
I’m not going to sugar-coat this.
You’re going to get rejected.
That’s the nature of marketing — some people buy and other people don’t. The only difference with cold calling is that the rejection is a bit more direct and in-your-face.
People will hang up on you, they will get angry, and they will tell you to take them off your list. But remember, that’s just a part of the process and it’s okay. Don’t take it personally.
Oh — and consider the next tip when you do get rejected.
Tip #3: Adjust Your Script With Each Call
While no one likes to get rejected, each time that a cold call fails, that’s an opportunity to adjust your script and learn from your mistakes. If every person you call is hanging up at the same time, try something different. Alter your script and see what works.
And remember, what works for you might not work for other people (similarly, what works for other people might not work for you!).
Every salesperson has a different personality and tone of voice so different strategies will work for different salespeople. Keep adjusting your script until you’re getting a response rate that you’re happy with.
Tip #4: Pause After You Introduce Yourself
A lot of salespeople are talkers — sometimes, that’s why they got into sales in the first place.
But the best salespeople know the power of a well-placed pause. When you pause for a moment, you give the prospect time to consider what you’re saying and to figure out how they’re going to respond.
It’s also less threatening. Think about it — if someone called you and started rambling about how their service is going to change your life, you would hang up without even listening to their pitch (you probably do hang up when this happens!). So don’t ramble.
After you introduce yourself — “Hello, my name is Mike and I’m with [Company].” — pause and let them process this before going into your next line.
Tip #5: Establish Rapport Immediately
With writing sales copy, have you ever heard the explanation that the only goal of the headline is to get the prospect to read the first sentence? And that the only goal of the first sentence is to get the prospect to read the second sentence, so on and so forth?
Well, cold calling isn’t so different.
Your first goal is to get the prospect to stay on the phone (ideally, without deceiving or tricking them, as this will just hurt you later on) and your second equally important goal is to get them to trust you (after all, they’ll only stay on the phone if they trust you).
So after you’ve introduced yourself and paused, ask a question about them or find common ground to stand on. The faster you do that, the sooner the prospect will trust you (and thus, the sooner they’ll listen to what you have to say!).
Tip #6: Get To The Point, But Not Too Fast
As a part of your cold calling strategy, you should do your best to call people during a time of day when they’ll be most receptive to hearing you out.
But, of course, you can’t please everyone.
Some people will be in a hurry no matter what time of day you call. And others will hear you out at any time of day. The trick is to try and pace yourself according to the tone of the person on the other side of the phone.
Do they sound like they’re in a rush? Do they sound leisurely? Do they sound annoyed?
To some degree, you should let those questions dictate how quickly you tell the prospect why you’re calling. If they’re in a hurry, be respectful of their time and get to the point fast. If they seem leisurely, then don’t be afraid to spend a little time shooting the breeze and building rapport.
A Simple But Effective Scripts For Cold Calling Motivated Sellers
Here are a couple of short and simple cold calling scripts for you. You can use these for your own cold calling process and tweak them to fit your personality. Remember, different strategies work for different salespeople, so change it as you use it and learn more about your own tone of voice and how prospects respond to you.
We hope they help!
Cold Calling Motivated Seller Script 1:
Hello, my name is [NAME] and I’m with [COMPANY].
How is your day going?
Sorry to bother, but I came across your contact information when I was looking for people who might want to receive a cash offer for their home.
How does that sound?
I’ll tell you what; let’s schedule a time to chat and I can do some research on your property. I’d be more than happy to make you a fair cash offer as soon as possible.
Cold Calling Motivated Seller Script 2 CashHomes:
You: Hi, (Seller) this is Anthony, I’m wondering if you could help me for a moment?
You: I represent a cash buyer who’s looking to purchase just one house in your area. Would you happen to have any interest in selling?
You: Okay, well since were looking in your specific area would you happen to know anyone that might have any interest in selling?
Seller: Yes, how much will you pay me?
You: Well my finance director will give you a call shortly, I’m here today to gauge your motivation and to gather accurate information on your property so he can give you our highest and best offer.
You: Tell me a little bit about your situation? What would you like to get for the property?
(Trial Close) are you living in the property or is it rented out? What would be your timeline on moving out?
• Month to month lease or loan lease?
• How can I fulfill your obligations to sign on this deal today?
(Try and figure out a situation and HELP THEM OUT)
• Have you changed anything within the house? Any upgrades to the property?
(Gather all info on the property)
If the shell isn’t cracked yet ask these questions:
A. Why are you selling?
B. What’s the most important thing to you about selling?
C. What’s the most important thing you wanted to get out of this call today?
It probably seems like cold calling motivated sellers will always be difficult like it’ll never get comfortable or easier.
But that isn’t true.
With enough practice and iterations to your process, you can cold call prospects with confidence and even close more deals because of it. Use the above guide to help you achieve the cold calling results you’re hoping for.
Even If You’re Only Cold Calling – You Still NEED a Website!
If you don’t have a website, you’re wasting a lot of time and money. Even if you do, it must be properly optimized for success.
The more real estate marketing opportunities you use, the more you need to ante up your credibility and trust.
When you’re cold calling, people have no idea who you are. They’ll need somewhere to go to validate and verify you.
If you want to stand a chance, you need a website that you can not provide the necessary information to build credibility and trust. You’ll need a perfect about page, testimonials and maybe even core values and a mission statement.
If you don’t, leads will bounce to your competitors leaving you with nothing but lost time and money.
Join the Nation’s Top Real Estate Professionals & Launch Your Site Today!
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Leave us a comment below with your own thoughts on cold calling. What you like, don’t like, might do differently, whatever. We’d love to hear from you.