Real estate agents are finding more and more leads by using apps and other high-tech methods such as Facebook campaigns.
Although new techniques for real estate prospecting have emerged, traditional methods such as open houses are still quite effective. Door knocking is not as popular as it used to be, but it can still be effective if done correctly.
Why is door-knocking effective?
Most forms of advertising require your audience to take some type of action. For example, your audience may need to click on a banner ad or drive to the store. When door-knocking, you only need the person you are speaking with to listen to you and no action is required from them.
An advantage of this is that it can be easier to get someone to take a small action, like responding to an advertisement.
1. Separate yourself from the competition
Many real estate agents believe that using the internet is the best way to find potential customers. An advantage of social media is that leads can be entered into a customer retention management system.
You can use the same methods for door-to-door leads as you would any other lead. The fact that many real estate agents are hesitant to knock on doors presents a great opportunity for you to set yourself apart from the competition.
2. Control the first impression
You can control how someone perceives you by the way you interact with them when they answer the door. You will not have to rely on someone else to get people to go to your website, so they will see what you want them to see right away.
You can generate leads by door-knocking even if no one answers the door, because you can leave something behind. This could be something like a door hanger for a realtor, or a small card with your name and logo on it. This technique will help you stay top of mind for your prospective client.
You need to record the addresses as well so you can input it into your CRM system as a cold lead. You should follow up that lead by knocking on the door again after a month or so.
3. The cost is low
Weighing the opportunity cost is important, and your time is valuable. However, the door knocking itself does not cost much unless you are driving for long periods of time.
It’s not quite free, of course, but almost. Dividends that stream in after just one hot lead are especially hot.
4. Relating to others is key in real estate prospecting
The personal interactions you have with clients are very important because it gives you an advantage over other agents.
Okay, all of that sounds reasonable in theory. Let’s look at the door-knocking strategy in more detail to see how effective it is.
It’s impossible for every agent to have an exact conversion rate. There are many different lead generation strategies that agents can use, and each one has different variables that need to be considered.
There is no doubt that this is an effective way to generate leads.
One study found that, on average, you can expect a 20% response rate and a 2% sales conversion rate. At first, a 2% sales conversion rate doesn’t seem like much. An agent can generate two sales after just two hours of work if he or she knocked on 100 doors. This is a considerable return that does not compare favorably to cold calling.
Is there going to be a difference in those figures for different people? Absolutely not. This isn’t an exact science.
You don’t need to be overly meticulous when calculating the costs and benefits yourself. Even if we use these figures as a rough estimate, door-knocking seems to be a promising activity.
The key is to know how to do it the right way. Here are some tips that you need to start with.
Why don’t real estate agents use door-knocking more often?
Some agents become discouraged after door-knocking a few times and failing to produce quick results. There are a few things you can do to improve your chances of success, however.
It is important to be sincere when someone answers the door. Although being nervous may make you feel uncomfortable, it can actually work in your favor by making the other person feel more comfortable.
The reason is unknown and there is no way to change it. The best thing to do is apologize and leave your business card. Sometimes, this act can start a longer conversation by itself.
While some people feel that door-knocking is not the most popular way to prospect for real estate, it can be quite effective if the right scripts are used.
Door knocking scripts
You should be prepared with a few different real estate scripts and realtor door hangers, depending on who answers the door.
The best possible outcome would be for one of the people in charge of making decisions in the household to answer the door, which would just require one script. You’ll need a different script if the person who answers the door isn’t a decision-maker.
No matter who answers the door, your number one priority should be making a connection and coming across as a real estate professional. Having a strong script can help you start a dialogue with someone.
A real estate door-knocking script is a tool that can help you get more leads and turn more prospects into clients. The success of your sales pitch depends on choosing the right script for the person you’re speaking to. Every script is designed for a different type of customer, so it’s important to pick the right one.
If you don’t get an answer when you knock on the door, you should leave a door hanger advertising your real estate business, as well as a handwritten note. It’s helpful to prepare the note in advance. No matter if you write the note right away or not, you need to have a firm understanding of what you want the note to communicate.
Door-knocking scripts success
There is no one perfect way to create a real estate door-knocking script, as it is more of an art form than a science. As with other forms of marketing, experimentation and finding what works best for you is crucial. It can be difficult to tell why one script is more effective than another, but you can get a pretty good idea by looking at how people respond to it.
As you gain experience, you will be able to identify a few real estate scripts that work well for you. Even when you think you have everything figured out, there will be times when your plans don’t work.
If you don’t get the result you want, don’t be discouraged, but try to figure out if another approach would have worked better.
1. Decision-maker answers the door
The best way to get a client when door-knocking is to see the decision-maker. Your door-knocking real estate scripts are key to taking advantage of this opportunity.
Paying a compliment is a good way to start this type of script, for example by mentioning how tidy the lawn is or how good the house looks from the outside. A good way to make conversation is to ask about their neighborhood and if they like living there.
The next step is to ask the decision-makers if they would ever consider selling their home. This will give you a better understanding of their current situation and if they are open to the idea of selling in the future. You should list your house with a real estate agent soon because houses in your neighborhood have been selling quickly.
If the person you’re speaking to is still interested in what you have to say, you can start going into more specific details about market value. You don’t want to be so aggressive that you turn the person away, or they don’t want to enter into your CRM system. Write scripts that strike a balance between these outcomes.
2. Non decision-maker answers the door
If the person who answered the door is not a decision-maker, your next step is to find out if there is a decision-maker available. If you weren’t able to speak to the decision-maker, you should inquire about the relationship between the person you spoke to and the decision-maker.
Most people are more likely to help you if you seem sincere, but they’re even more likely to help you if you give them something for free.
If the person you are speaking to is not the decision-maker in the household, you can say something like, “I will wait until they return.” I have a present for you, here you go!
3. No one answers the door
If no one is home when you knock, you can leave a door hanger or note with a reminder gift or card. Bring a bunch of notes with you that don’t have personal addresses on them.
Please remember to bring enough notes with you, as you will be door-knocking during the day when people are not usually at home.
If you want better results, you should try writing personalized notes. However, this will prevent you from being able to prepare notes in advance. Leave a small reminder gift, as always.
Best tips for effective real estate door-knocking
Look the part
Dress professionally, but for your market. If you want to sell real estate in casual Manhattan Beach, California, you shouldn’t wear a shirt and tie. You may want to take it into consideration if you’re in Manhattan, New York.
You should wear clothes that match the culture and style of the neighborhood you’re working in, so that you look like the kind of real estate agent people in that area would want to work with. Presentation is everything.
Instead of thinking about your end goals, focus on being helpful in the moment. The immediate priority is far narrower. Contracts are never signed over the welcome mat.
No one wants to have a relationship with someone who is only interested in them for what they can gain from them, so keep the relationship central to your interactions.
Set goals and track your progress
Keep track of how many homes you plan to visit in a certain time period, store your leads’ contact information, how many leads you have acquired, the number of listings, and the income you have generated. Give yourself a roadmap to success.
Bring something to leave behind
If it’s a marketing piece, make sure your branding is included. You can make a lasting impression by bringing a small gift, like a pastry from the bakery down the street or a simple potted plant.
Objections to door knocking (and how you can overcome them)
Some real estate agents may avoid door-knocking because it can be imagined that it would not be an effective strategy. Although it may take some time, it is worth it to predict the obstacles you will face and to learn how to deal with them.
This can make a big difference in the number of new clients that come to your door.
1. The fear of rejection
Let’s be honest, the concern is valid. Door-knocking is often a fruitless endeavor because people often slam the door in your face. When you’re constantly being ignored or hearing “no,” it can be incredibly painful. No one likes being rejected. Especially when it’s done rudely.
The “no” is only directed at their perception of your offer. It’s not a personal attack. It is possible to learn and improve the ability to Shake It Off and Move On.
2. It’s time-consuming
Although it is very time-consuming, door-knocking is the most physically demanding lead-generation strategy.
The act of door-knocking and the waiting period between first contact and ultimate reward can both be extensive.
But there are two points to consider here. We will see that the time is well spent. The return on investment can be very profitable if it is done correctly.
Second, it is only as time-consuming as you make it. It doesn’t have to consume your work week. Instead of worrying about how much you’re producing, worry about being consistent and making sure the quality is there.
3. It’s not fun
It lacks the instant gratification we all want. That’s why many agents abandon this approach. We would rather be doing other things than this. Granted. You may learn to love it when you start seeing the payoffs.
Door-to-door canvassing can be an effective method for finding potential customers. But let’s be honest. It takes time. In a way, it’s similar to farming. It takes a lot of hard work, dedication, and determination to get things started.
After all, you will be knocking on doors, not walls. There is always an opportunity available, even if it does not seem like it. The more quickly you get started, the faster you will begin to see results.