Real Estate Prospecting Ideas for Slow Markets

When real estate markets change, the same old real estate prospecting ideas need to be tweaked accordingly.

In a strong market, you have the freedom to be a little sloppy with your prospecting. With so many buyers and sellers, you can make a few phone calls, send a few texts, and land a new client. But when the market slows, it’s going to take many more contacts to find a solid lead and get a deal closed.

In this post, we’re going to talk about some real estate prospecting ideas that work particularly well in slow markets.

Quick note: we’re focusing on real estate prospecting ideas today, as opposed to real estate marketing ideas. It’s a subtle difference but an important distinction to make. Prospecting requires you to invest your time in reaching people one-on-one. Marketing is more passive; marketing allows you to reach multiple people with your message. Generally, prospecting requires more of a time commitment, and marketing requires more of a monetary investment. If you’re looking for marketing ideas, check out 7 Real Estate Marketing Ideas for Slow Markets

With that, let’s get to our list of real estate prospecting ideas for a slow market.

Real Estate Prospecting Ideas for Slow Markets

We’ve got 7 brilliant real estate prospecting ideas. Let’s get right to them…

1. In a slow market, there are 6 main groups you should be targeting:

1. Expireds: With slower markets, more listings expire, so there is greater opportunity to become the new agent of choice for these sellers. And you already know they are serious about selling!
2. Short Sales: If your market has declined to the point where homeowners are underwater on their mortgages (they owe more than the current value of the home), those homeowners may be looking for alternatives to foreclosure.
3. REO (Real Estate Owned): With banks forced to foreclose on homes, there are lots of REO listings to be had. You just need to connect with bank representatives responsible for choosing the listing agent(s) for REO properties.
   
4. Investors: A slow market is when investors snag their deals. And nurturing relationships with investors can mean tons of repeat business! 
5. Renters: A down market is the perfect time for renters to get on the property ladder. Even expensive markets like LA and NYC can become affordable for renters when values are down.
6. Upgraders: Sellers are generally hesitant to sell their homes during a slow market because they won’t get as much for the house as they could during a strong market. But if they’re looking to upgrade to a bigger/better home, getting that new home at a discount might more-than-offset the potential loss on their current home.

Master these 6 groups, and your business will be recession-proof!

2. Build Your Power Hour Around Those Target Groups

Your Power Hour is the daily 60-minute time slot where you focus on setting appointments. This hour is the most important time you will invest in your real estate business every single workday. It’s this critical hour that keeps your pipeline filled and keeps the revenue flowing.

For maximum impact, structure your Power Hour around your 6 target groups. Open your CRM (if you don’t already have a CRM, you can buy a ready-to-use Excel-based CRM for under $10), and let’s get to work!

1. Expireds: Start with expireds as early in the morning as you dare (7:30-8:30 works well in most markets) because those poor sellers are going to be inundated with agent calls. Reach out via phone call to everyone on the Hot Sheet whose listing expired the day before. 
2. Short Sales: Check your local records to see who is behind on their mortgage payments. Empathize with their situation and find out if they’re interested in learning about short sales as a possible solution.
3. REO: Follow up with any REO contacts who are due a conversation. If you don’t have any REO contacts on your CRM, make a list of people to reach out to, and start making calls. Invite them to coffee to discuss their needs and your solutions.
4. Investors: Reach out to your investors to let them know of any new investment properties that have hit the market or are about to hit the market.
5. Renters: Follow up with any Renters on your CRM (more on how to land renter contacts shortly!).
6. Upgraders: Finally, reach out to anyone on your CRM who’s looking to upgrade to a larger/better home. These calls are especially effective if you can point to a new listing on the market as the best available home in their price range. 

Don’t forget to schedule your next contact after each call. Every single lead should have a future contact scheduled so no one falls through the cracks.

By the way, if you find yourself procrastinating when it comes time to prospect, consider using a simple prospecting checklist. It takes the guesswork out of prospecting and lets you focus on making those contacts and landing those appointments!

3. Launching a Renter-to-Homeowner Program

Renters can be a gold-mine of first-time buyers. And you know how profitable first-time buyers can be, right?! You become the buyer’s agent for their first home. Then you’re their agent for both the sale of that home and the purchase of the upgraded home several years later. Then you do another upgrade after that. Maybe a vacation home! Or an investment property! Then a down-size. And then you can help their kids buy their first homes…

But you can’t just cold-call renters and expect them to buy. You need to educate them. Show them the financial benefits of ownership (especially in a down market when rent is most likely to exceed the monthly cost of ownership!). Show them that they aren’t necessarily locked into their lease (read our Renter-to-Homeowner post for more info on that). And outline the buying process for them to show them how achievable home-ownership actually is!

That Renter-to-Homeowner post I just mentioned gives you a complete blueprint for reaching renters in the most effective way possible. So check it out for full details!

4. Offering a New Service to Your Old Clients

I’m a HUGE fan of using diversified revenue streams to even-out your income during a slow market. And if you can make some quick money while providing real value to your clients and keeping yourself front-of-mind, why wouldn’t you?!

There are a few magical services you can add to your real estate business that actually perform better during a recession than during a strong market. For example:

• Credit Repair Services: help your potential buyer clients qualify for a loan!
• Property Tax Appeals: get your client’s property taxes lowered when the value of their home declines!
• Tool and Equipment Rental: when people need to make repairs and renovations but don’t want to spend the money to buy the tools, you can easily rent your equipment to them!
• Property Management: when your clients need to move, but really don’t want to sell in a buyer’s market, offer your property management services!

Contacting your clients to offer any of these services is one of the best prospecting ideas for a slow market for several reasons:

1. It’s about meeting your clients where they are.
2. You’re able to provide a truly valuable service to your clients.
3. You set yourself apart from your competitors (no other agents are offering to reduce their clients’ property taxes!).
4. It helps you stay in front of your clients. Even if they don’t need these other services, you’re reminding them that you’re here and that you’re an expert in all things real estate.
5. These services bring in more immediate income while indirectly increasing your income from real estate transactions.
6. You’re able to diversify your income so you’re not 100% dependent on transactions for your income.
7. You’re not limited to only your clients. Ask your Broker if you can be the go-to credit specialist for all their agents struggling to qualify buyers. Or the go-to property tax specialist for the brokerage (which is surprisingly simple to do!)

If you don’t already offer other services, seriously consider it. Our list of 55 Ways to Make Money in Real Estate is full of ideas! Then reach out to all your clients and prospects to let them know what you can do for them.

5. Door-Knocking

In general, I’m not a fan of door-knocking. It seems too invasive and makes me uncomfortable. But there’s one perfect reason to door-knock: open house invites. Door-knocking seems entirely acceptable in this case because you’re not bothering someone at home just to promote your business; you’re inviting them to take an inside peek at their neighbor’s house. And most neighbors are curious!

When they answer the door, you just say:

Hi there, I’m Michelle with Key Real Estate. I’m sure you’re busy, so I don’t want to take up any of your time. I just wanted to invite you to an open house I’m hosting in the neighborhood this Saturday.

[hand over the flyer]

Do you know the Johnson’s? (This is just a question to get them to engage in a conversation. Even if they say no, you can reply with something general like “Oh, they’re just the nicest family! I’m hoping to find buyers that will be just as good of neighbors as they are”.)

Then you close by asking the door-answerer if he/she knows anyone who might be interested in moving to the neighborhood. Easy for you, no pressure on them!

Many agents also ask how much longer the homeowner plans to live in their home. If it feels like a natural question to ask, go for it! It’s great information to have so you can follow up with them in the future.

And if that person shows up to the open house, you’ll be able to ask more questions about their situation.

If you have an open house, I recommend knocking on at least 5 doors on each side of the listing and 10 houses across the street.

6. Targeted Mailers and Door Hangers

Targeted mailers and door hangers may be old-school, but they’re still a solid, cost-effective way to prospect in most markets.

If you’re already using them to stay top-of-mind with your geo farm, great! Keep that up! But we’re going to take this a step further…

Think about the real estate prospecting ideas for slow markets we’ve discussed already, like the renter-to-homeowner program, the new services offering, and the open-house door-knocking. All of these also lend themselves well to targeted mailers and door hangers.

For your renter-to-homeowner program, once you meet with the Apartment Managers, you’ll be able to get mailing addresses for all the residents in that building (even if you can’t get the names of the occupants, you should at least be able to get the addresses so you can address your mailers to “Future Homeowner”). Then you can send fancy invites to your totally free Renter-to-Homeowner Seminar. You can also send informational mailers about how much renters can save each month by buying. And how you can help them avoid the early termination fee for their lease.

For your new services, you can send mailers introducing the service in terms that will resonate with homeowners. For example, using data available from the county and/or your title rep, you can send a mailer to every property owner in a zip code where property values are down to explain that the lower home values could mean that the homeowner is paying too much in property taxes, and you can work with the County Assessor to correct those taxes at no upfront cost to the homeowner (they only pay a percentage of the savings if you get them a tax reduction).

And that door-knocking open-house invite? How about you send a mailer to everyone in that area that says Help me find your new neighbor!? That’s much more engaging than a just listed card. And you might get some homeowners calling to tell you about their friend who wants to move to the neighborhood.

There are tons of options for mailers. The important thing is to document your marketing strategy, then stick to it consistently over time. You need to give it time to work!

7. Earning Referrals

Earning referrals isn’t the most revolutionary of our real estate prospecting ideas, but in a slow market, referrals become more important than ever.

Are you earning repeat business and referrals? If you’ve been in the industry for more than 2 years, the answer should be a resounding “YES!” And if no, it’s time to re-think your prospecting plan as it pertains to your prior clients.

Lucky for you, I have a tried-and-true plan, ready for you to implement today!

Here’s a simple 3-step process to prospect to your past clients:

Step 1: Showing Genuine Gratitude

Some agents are bucking the trend of closing gifts. They have already provided quality service, so they don’t see the need to spend part of their hard-earned commission on a closing gift.

But failing to give a closing gift is a huge missed opportunity.

First, many clients expect a closing gift because of the tradition of closing gifts. And your goal is always to exceed expectations, never to disappoint your clients.

Then there’s also the fact that closing gifts give you the opportunity to express your appreciation for your clients’ business. Without their business, you don’t survive as a real estate agent. So cultivate that attitude of gratitude and show your thanks with a thoughtful closing gift.

Lastly, closing gifts are an opportunity to make a lasting impression. A thoughtful closing gift helps your clients remember you. And a carefully selected closing gift can even generate referrals! Check out our list of 20 affordable closing gifts guaranteed to impress your clients.

Step 2: Providing Ongoing Value

Most agents consider the job done when the deal closes. Savvy agents know that a little ongoing effort pays off HUGE in referral and repeat business.

How can you help your clients after the sale? First-time homeowners are pretty clueless when it comes to home maintenance. Maybe you can send them a friendly list of home maintenance issues to tackles each season. Investors are always looking for deals, so send a complimentary list of the best values on the market every week or every month.

You should also send custom value estimates to your clients every 6-12 months to let them know how much their home has increased in value (just in case they’re thinking of selling).

Step 3: Maintaining the Personal Relationship

Don’t just rely on blanket marketing to stay in touch with your former clients. Schedule some personal touches as well to make sure your personal relationship is maintained.

Here are a few examples of effective personal touches:

• Send a Happy Housiversary Card every year. And maybe a small gift for that first year (if you really want to wow your clients!)
• Host an annual event, and invite all your formal clients. A simple party at home is nice and personal. But it’s certainly not the only option. Hosting an outdoor movie night is perfect for families. Offering a “Hidden Gems” tour of your city is great for areas with lots of non-natives. And renting out a boat for a sunset cruise with drinks and live music would be ideal for luxury market clients.
• Check in out-of-the-blue. Send a quick text just to say, hey I was just thinking about you and wondering how you’re doing. Anything new and exciting going on? These messages are great because there’s no agenda. You’re just reaching out to an old friend to see how they’re doing.

With these personal touches, you’re not just staying in front of clients, you’re building on your personal relationships with them!

Practice the 7 real estate prospecting ideas from this list, and you’ll be well-protected against slow markets.

Get Your Complete Recession-Proof Guide!

If you’re serious about growing your real estate business during a slow market, check out The Recession-Proof Real Estate Agent. This book offers a complete step-by-step guide to recession-proofing your real estate business.