What are Real Estate Prospecting Letters?
Snail mail in a digital age may seem like a waste of time, but that couldn’t be farther from the truth. When people receive letters in the mail, they spend more time evaluating if it’s junk mail or has some value to it. In real estate, that extended time of deliberation can be extremely beneficial in becoming the one named in a referral to someone else or having someone pick up the phone and call you to help find their next home.
Real estate prospecting letters target potential sellers interested in moving or selling their home.
Prospecting letters are one of the most meaningful lead generation avenues available. Due to the nature of a personalized letter, sharing relevant information, and passing this in a physical form, there are many advantages to letter marketing.
What is the Value of Writing Real Estate Prospecting Letters?
The initial value of a prospecting letter is that it is more intimate and directed than an advertisement broadly placed online or in a newspaper. Because of the increased cost per letter (the stamp, in addition to the cost of printing the letters), it is essential that you take the time to properly plan out your marketing strategy.
Here are a few great reasons to send real estate prospecting letters:
- You’ve recently sold a home for over the asking price in that area. The goal is to get other potential sellers excited at the potential of selling their own home while the environment is good to sell.
- You’ve recently sold a home with incredibly fast results in their area. Much like the previous point, the idea is to get the owner excited about the potential of having similar events replicating to their own transaction.
Tips for Writing Real Estate Prospecting Letters:
- If you’re writing just a few letters, consider writing them yourself rather than typing and printing mass-producing them. Handwritten letters show more of an investment that people notice! Additionally, small personalized notes go a long way in letting people know you are thinking about them.
- Write your letters in your own words and not as a sales pitch. For example, nobody thinks of their home as ‘inventory.’ In this instance, telling a family that ‘inventory is low’ means nothing to them – and actually might make them less inclined to work with you because of your inability to relate.
- Don’t use introductions like “Dear Sir/Ma’am” or “To Whom it may concern”. You want the relationship to be genuine and vested in trust. Most people prefer to work with agents they can relate to.
- Establish who you are and that you are a market expert.
- Create a call to action that has a specific sense of urgency. For example, the real estate market is currently in favor of sellers but could change any day!
- Write a thank you letter to someone who just closed on a transaction and either bought or sold a home. Thank them for their business and let them know that you would be honored to work with them, their friends or family, anytime.
- Consider sending real estate prospecting postcards instead of letters. Vibrant images, charts, and limited text can sometimes work wonders in conveying your message.
Real Estate Prospecting Letters Sample
Dear First Name,
I am Your Name, the Realtor who recently sold the home at 123 ABC Street in Alphabet Subdivision.
The real estate market has been vastly different than what we saw last year. There are currently more qualified buyers in the market than there are homes for those buyers to purchase. Many homes are getting multiple offers and are selling for thousands above their listing prices and in a matter of a few days.
In the specific case of the property above, there were 10 offers received and the property ended up selling for over the original listing price! While one of those 10 offers was accepted, the other 9 were not – and those people are still looking for a home just like yours.
If you or someone you know is looking to sell their Alphabet Subdivision home, please call me today at 123-456-7890 so I can explain how the market has shifted in favor of someone looking to sell their home. I look forward to speaking with you soon.
All the best,
Are Real Estate Prospecting Letters Effective?
The above real estate prospecting letter sample conveys several points really well. Here are a few thoughts about why it works in connecting with the seller, conveys a sense of urgency, and brings a credible call to action:
- It shows them a property they probably drive by every day and are familiar with. Being able to identify the home you sold only makes your communication more relevant because you are able to directly relate to them.
- The letter shares a victory that everyone who leads the letter is going to want similar results to. This real estate prospecting technique identifies that the sale of the house occurred in just a few days and that the sellers were able to make more than their original asking price.
- The letter also conveys that there were 10 offers on the home and that only one of those offers was accepted. That means there are at least 9 other buyers out there looking for a property just like theirs. With most people aware of the concept of supply and demand, this shows a sense of urgency and competitive nature of the market that might drive other sellers to list so their house is another that encourages active bidding.
If you’re looking for additional templates and examples, here’s a link to our Elite Marketing Library.
Get Started With Real Estate Prospecting by Mail
If you’ve been inspired by this article to give real estate prospecting marketing a try, then you’ve identified how impactful a personalized letter can be. Mail marketing commands more attention and thoughtfulness than generalized marketing online.
If you’re unsure of where to start, don’t have example transactions to reference, or have questions that are still unanswered – consider scheduling a free consultation to meet with an experienced real estate coach. Our team of coaches has centuries of combined experience in the field and can help you evaluate your business and focus your efforts in the most meaningful ways.