Prospecting Letter Templates That Will Bring You Business

Prospecting letters is the salesy-term used to describe letters sent to potential clients introducing you as an agent. These can be sent as emails; however, care and concern are the top qualities a buyer and seller want in their real estate agent, which are difficult traits to convey when you aren’t willing to risk the time and expense of using a stamp. Additionally, prospecting letters must contain an element of value in order to be effective.

We have created a number of example templates you can use to ensure you make a positive impression. That said, it is important to remember the market that we work in as real estate agents on a daily basis can be compared to a snowflake: No two are alike. The letters that you send to a potential seller or buyer needs to adapt to the present market you are in.

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Please keep in mind that the verbiage will need to be updated as the climate of the market and interest rates change. The following templates relate to the present economy in light of COVID-19 and record low interest rates.

Template 1: The Introduction or Announcement Letter

Intended audience: Your local community

This type of prospecting letter works for new agents and seasoned agents (the agent who has a good amount of real estate business under their belt). You want to use this letter to introduce yourself to a particular neighborhood or community group. It can also be easily adapted to send as a letter of introduction to new leads following a successful open house.

Template 2: The Low Inventory Letter

Intended audience: Prospective sellers

Imagine you are at a community function and someone overhears you are a real estate agent. What do you think is one of the first questions they are going to ask you? Most likely the first question you are asked is, “How is the market?” Odds have it the next question you are asked is, “Is it a seller’s or buyer’s market?” You most likely would respond, “At this time, it is a seller’s market.”

With the shortage of homes on the market and an influx of buyers looking for homes, there is no time better than the present to sell a home. This makes the following template a great form of real estate lead generation as it can be used for a farming area you may be working or even the potential “on the fence” sellers who need a little nudge to start the process.

Template 3: The Record Low Interest Rates Letter

Intended audience: Prospective buyers

Unless you have chosen to cut yourself off from all news and world happenings, you know that interest rates are at an all-time low. As a real estate agent, what a great opportunity to reach out to potential buyers and share with them this incredible information. Sending this letter out could solidify your rock star status, especially when working with a first-time homebuyer.

This is a great time for you to reach out to friends, family, and neighbors and ask them if they know of anyone who may want to purchase a home. I have always been of the philosophy if you don’t ask—you don’t get.

Template 4: The Renter Letter

Do you know why most people continue to rent instead of buy? You probably think it is a financial situation or affordability. It is my experience, unfortunately, many people rent because they don’t realize that they have the financial capability to purchase a home. Shocking, right? It is our responsibility as real estate agents to inform and educate renters to explore their homebuying potential.

A great prospecting tip is to reach out to your title company and obtain a list of renters to farm, if allowable in your state.

Template 5: The Co-marketing Prospect Letter

Intended audience: Potential local business partners

Even before you got your real estate license, you were told how important networking was to the survival of your business. It is important to surround yourself and solidify relationships with companies that can be a part of your professional network. A great way is to reach out to local lenders, inspectors, insurance agents, financial advisers, and attorneys, to name a few. During the homebuying and selling process, you will need to utilize the expertise of these professionals. Why not use these relationships to get new business?

When you become a real estate agent, you realize very quickly that developing relationships in your community is crucial. Once you make these local connections, you will recognize how quickly you can build an incredible network for referral opportunities. I always share with my agents that “the community has been very good to you—you must be very good to the community!”

A great tool that can help you network with other local businesses is Parkbench. However, in addition to providing you with a way to identify potential co-marketers, Parkbench also gives you the ability to create a local real estate page, which can help establish you as the area’s go-to expert.

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Template 6: The Referral Request Letter

Intended audience: Your top-referring friends, family, and past clients

One of your best opportunities to get new business is to ask for it from people who know and love you. I call these “raving fans.” If they are past clients, they already know your business ethics and how you guided them through their transaction. If by chance they are friends or family, they know your heart. It is your responsibility to make sure these “raving fans” never forget that you are a real estate agent. Please don’t take for granted that they always remember.

Tips for Successful Real Estate Prospecting Letters

A study published by Psychological Science found that it takes less than a tenth of a second for a person to make an initial judgement about competence, trustworthiness, and aggressiveness. Unfortunately, later studies have also found this initial judgement can linger for months in the minds of would-be clients. Therefore, you may have only one chance to keep your prospecting letter out of the trash can.

Here are some tips for getting you noticed in the first 15 seconds:

• Use an actual postage stamp: An easy way to get noticed is to use a “fun” stamp instead of relying on a postage-paid envelope, which can make your letter look like junk mail. I like to add color and graphics to envelopes as well as a little personality. This is also a great way to establish your personal brand. For example, my clients know that I like to celebrate all holidays and use holiday postage stamps.
• Address envelopes by hand: This is because a handwritten envelope is simply more personal. When a note is in your own handwriting, you are saying I really want to take special time to connect with you. The recipient of the card will “feel the love.” Feel free to also personalize envelopes with stickers or positive messages to bring a smile to the face of prospective clients. This can show both your attention to detail as well as your creativity.
• Use legible fonts for the letter, such as Times Roman or Arial: As much as we like for our letters to look fancy, we have to make sure the reader can read the words without struggle. Words should be crisp and clean for ease of reading.
• Use a headline defining the topic of the letter: The reader will only have so much time to read our letter. A headline can draw their eyes to the topic they want to read. This could also prompt the reader to read another headline.
• Keep letters short, sweet, and to the point: We only have so much time for our letter to be read—from the opening of the envelope to the garbage. Every second counts. No one likes to read long-winded letters.
• Demonstrate care and concern: Life is hard, and everyone wants to feel someone cares for them. That someone should be you. Be the one of the positive people in your client’s world. They will appreciate it immensely.
• Use a heartfelt and memorable tagline: Taglines are a great way to reinforce your brand and values. I have used “Do you want a friend for life, then hire me as your real estate agent” as my tagline for 21 years. This is because I want every prospective client, established client, business owner, and peer to know that I am all about creating long-term relationships.

Just as there are a number of things you can do to help ensure you get noticed, there are also a number of things that can guarantee your letter ends up in the circular file. These are things your letter should never do:

• Look like a solicitation
• Contain no value to the intended audience or relevant content
• Include spelling and grammatical errors
• Is more than one page and hard to read (small font)

In addition, don’t send a letter unless you know your audience. To avoid creating unintended offense, use the same protocol in letter writing as you do in showing property. Please make sure to review your fair housing laws in your specific area.

Use small headshots—your prospecting letter is not a billboard. As real estate agents, we tend to have large egos. Let your ego come out in your negotiating skills, not advertising. The client needs to feel and believe that your focus is on them, not you. Remember: Care and concern is priority.

Finally, be humble. While many of us take pride in working hard and hitting certain benchmarks, where an award is given recognizing that accomplishment. A prospecting letter is not the forum to share all your awards. When writing your bio or introducing yourself in a letter, please consider the option to not “showboat” these awards, making you appear self-serving. Humility goes a long way.

Tools to Help Manage Your Real Estate Prospecting Letters

With present technology, it is good to know that there are tools that we can use that help us look as professional as possible. Some of us may not be the best of spellers. Some of us may also write run-on sentences and use incorrect grammar. It is reassuring to know that there are programs at our fingertips to assist us with these tasks.

When it comes to spelling, nothing makes us look “less in the know” than typos. Also, using a word in the wrong context can be confusing or offensive. Consider using Grammarly, which offers a free spell check and can also check for the tone of your letter. Remember, “You don’t get a second chance to make a first impression.”

However, once your prospecting letter is sent, you need a system in place to help you remember to proactively follow up and touch base with the potential client, e.g., a customer relationship management (CRM) program, like Top Producer. In addition to working with more than 150 lead sources, this CRM can help you personalize your messages and assist you in setting up a timeline to follow up with an email.

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Bottom Line

The one thing I learned very quickly in real estate is that if you don’t ask for referrals, you don’t automatically get them. Sure, once in a while, you get a gift from the real estate fairies, where you show up to an event and a community member says, “Call me, I need you to list my home.” True story. However, in reality, the time, resources, and energy in sending out prospecting letters asking for referrals will give you a great return. So get busy prospecting.