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Why Do Real Estate Agents Cold Call?

Real estate agents cold call in order to prospect for new clients. Since real estate agents are not salaried employees, they must find ways to meet as many people as possible to find those who are looking to buy or sell real estate.

Real estate agents cold call because it is a tried and true method to speak with people and ask if they have any real estate needs. Although time consuming and scary to many agents, it is a proven way to generate leads.

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The more calls made, the more deals that can be closed.

What is Cold Calling in Real Estate?

Cold calling is the process of making phone calls to people that you have no previous relation to. No prior contact or knowledge of their real estate needs. The purpose of the call being to find out if and how you can provide your services to them.

Photo by Quino Al on Unsplash

Is Cold Calling Still Effective?

Cold calling is rapidly falling out of popularity as less people answer calls from numbers they don’t recognize. Not only that, but many people prefer communicating via text messages.

Although cold calling is fading out of the real estate agent’s toolbox, it is still massively effective for generating leads. Many top agents across the country today are skilled at cold calling and have built their businesses around it.

How Can I Get Better at Cold Calling?

The key to improving at cold calling is repetition. Memorizing tested and proven scripts is a great way to overcome common objections. At the end of the day, practicing with colleagues and actual consumers is the only way to get better.

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Coaches like Ricky Carruth with Zero to Diamond program provide a massive amount of value to agents looking to generate new business. Ricky’s free scripts and cold calling coaching videos are invaluable and have led to impressive growth for agents with the drive to execute on his teachings.

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Other Lead Generation Methods

Besides cold calling, be sure that you are trying every option at your disposal to find what works best for you. For some, they may find that they are best at building a business based on referrals.

Focus on your sphere of influence, friends and family, and even trying door knocking. For a more comprehensive breakdown of reliable lead generation methods, check out our guide here.

Is Cold Calling Legal?

Cold calling has gotten a bad reputation over the years. That being said, the act of cold calling itself is not illegal. Often, consumers receiving calls perceive it as spam and telemarketing. On the consumer side, it is easy to understand why getting unexpected calls is frustrating.

When your phone rings, you want it to be someone that you want to talk to. Nobody likes random calls from salesmen trying to get them to buy something or sell their house. Worst of all are the constant robocalls about insurance and car warranties.

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Luckily, the best real estate agents are finding pain points that they can provide the solution to. Real estate agents without training will feel like they are pestering people, and that will come across over the phone. Seasoned veterans will not feel like they’re bothering people, and the people they speak to will appreciate the value they are bringing them.

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Why Cold Calling Should Stay Legal

At the end of the day, cold calling is frustrating because of slimy salesmen that are harassing consumers. These unethical operations are creating a bad name for everyone in sales that uses a phone. This makes it more difficult for consumers and genuine service providers to connect.

Maintaining legality of cold calling and possibly finding ways to regulate robocalls would be an overall net positive for the real estate industry.

Real estate agents provide a useful service, and cold calling is a good way to connect with consumers. Just because two people do not know each other yet does not mean they shouldn’t be connecting over the phone.

The Do Not Call List

Although cold calling is not illegal, there are things worth considering before calling a list of numbers. There is a public do not call list that any consumer can elect to have their number added to.

When cold calling, it is critical that you are not calling anyone whose number is on this do not call list. Currently, the fine for calling someone on the do not call list can vary from $100 up to $25,000 per call depending on which state you’re in.

There are companies that you can run your phone numbers against to confirm that they are not on the list. If there are numbers on the do not call list, we do not recommend calling them.

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Matt Moreland
Matt Morelandhttps://www.mattmorelandrealtor.com/
Matt is a real estate agent, investor, and entrepreneur in Texas, where he lives with his wife and three children. When he is not working on The Agent's Archive, he is helping his clients acquire investment properties, guiding new agents as they enter the industry, farming wine grapes, or working on something for his winery. In his free time he enjoys homesteading with his family, hunting, swimming, and backpacking.
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