Cold calling is a time-tested sales strategy that dates back as far the late 1800s. While the products and services being sold since then have likely dramatically shifted, the efficacy of cold-calling hasn’t. Today, cold calling is still one of the most reliable ways for real estate agents to find new leads in the increasingly competitive property market.
That being said, cold calling is by no means an easy thing to pull off, or even be good at. Cold calling typically has a 1% to 3% success rate, and that’s if the call doesn’t immediately go to voicemail. Nevertheless, it’s a numbers game. It’s still very much a worthwhile skill that can potentially land clients with lucrative deals – which means that any self-respecting real estate agent should take the time to get better at it.
The importance of cold calling for generating leads
Despite new connection avenues like social media and email marketing, cold calling still remains a cornerstone in lead generation strategies. In fact, an estimated 68% of real estate professionals report successful follow-ups after cold calling, according to a 2024 market data report by Gitnux.
There’s no secret as to why cold calling is still an effective strategy for finding new clients in real estate — it’s simply one of the most personable approaches (aside from client referrals). And in an increasingly isolated world where people are becoming more work, connect, and share online, having a personal touch can make all the difference in how responsive prospective clients are.
Without further ado, let’s jump into how to get better at cold calling. Already think you’re a pro? Think again. There are always ways to be better, get better, and improve your cold-calling skills.
Nine ways you can get better at cold calling in real estate
1. Define your objectives before calling
Set your goal and keep it in mind before you start calling. Most of the time, real estate agents struggle with finding the right way to steer the post-introduction conversation to a productive discussion of the potential client’s needs or their own real estate services. Clearly defining your goal, whether it’s to present your services, or ask about an off-market property will help you direct the conversation to your favour.
2. Dial at the right time for your prospect
Timing is everything, especially if your client is still a working adult. Working times in Australia typically stretch from 9 am to 5 pm. The initial hours of the day are when most individuals plan their entire day and focus on the day’s major issues.
Research shows that the best time for making cold calls is between 4-5 pm, followed by 11 am to 12 pm. The number of conversations that happen during 4-5 pm has been recorded to be as much as 71% higher than those at 11 am to 12 pm.
3. Qualify prospects on the call
During the conversation, it’s possible that your prospect will reveal or mention information about their circumstances that disqualifies them as a potential client. In such cases, it’s always better to politely acknowledge the shared information and end the conversation as soon as possible. You don’t want to waste time on an ineligible prospect — simply move on to the next one.
4. Stick to a script
Some real estate professionals feel that having a script makes them sound more robotic or impersonal, but the fact is, it depends on the quality of your script. Unless you’ve got years of experience under your belt and know exactly what to say, it’s better to stick to a pre-planned script to free your mental space to process any information or questions from the prospect.
5. Match tone and energy
Forming a connection over the phone is not easy, but it’s possible. Don’t worry about being too salesy or direct — simply introduce yourself in a professional way, and then listen to how your prospect responds. Try to match their tone and energy: if they sound excited, mirror their excitement. If they sound apprehensive, it can help to take on a less formal tone to make them feel more comfortable.
Once you’ve established a genuine connection with a prospect, the chances that they will reach out to you for their real estate needs will be significantly higher.
6. Nurture warm leads
Always make a note of potential prospects that show interest in your services. While not all of them may need your services immediately, there may be a time in future that they will. Be sure to keep in regular contact with them to foster a closer relationship, so that you remain front of their mind when they are looking to buy or sell.
7. Know your market and stock
Keeping abreast of any news or market changes in the real estate area you service should already be a core part of your day to day, and it can also contribute to the success of your cold calling efforts. Keeping essential facts about the market in mind when cold calling will prove your expertise, and encourage relevant decisions about their property (e.g. sharing that property prices in the region are soaring might prompt prospects to consider selling property.)
8. Learn how to handle rejection
Rejection is part and parcel of the cold calling process. According to general statistics, 0.3% of cold calls result in an appointment. Be prepared to face disappointments, but don’t let them get you down. Learn how to respond positively to prospects, even if they reject your services — this keeps the door of opportunity open for the future.
9. Don’t get stuck on setbacks
An estimated 95% of contacts are neither interested nor have an immediate need for real estate services during cold calling. It’s important that you don’t get stuck on this 95% and instead keep going for the 5% that could land you a profitable project. Keep a resilient mentality and simply move on to the next prospect when it’s time.
Final thoughts
Cold calling is by no means an easy way of generating leads for real estate, but statistics show that real estate professionals who persist in cold calling efforts can not only reap the rewards of profitable clients, but also extend their circle of connections for prospective clients.
At Entry Education, we provide specialised training for real estate agents and professionals in Australia. Our real estate courses cover all states and territories, from real estate courses in NSW to finance and mortgage broking courses in WA.
