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.
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.
Subject: Hometown Realtor Keeping You in the Know!
Dear (Potential Seller or Buyer),
Hoping this letter finds you in good health and spirits. My name is (your name) and I am a real estate agent with (company name). I wanted to take a moment to introduce myself and share some exciting real estate news.
As a real estate agent, I bring you (number of years) of experience and knowledge to walk you through the homebuying and/or selling process. I also have lived in (town, city) for (number of years), making me knowledgeable of the local market.
Whether you are looking to sell your home or buy a new home, our present market is a “perfect storm” of super-low interest rates and a shortage of homes to buy. What does this mean to you? If you are a buyer, low interest rates afford you an opportunity to have more buying power. Buyers are able to purchase a higher-priced home at a comfortable mortgage payment. If you are a seller, basic economics play into your advantage in the present market. With supply being so low and demand so high, the seller can experience multiple offers and selling at a higher price than expected.
I would welcome the opportunity to expedite any request and/or any questions you may have.
Looking forward to visiting with you in the very near future.
Thanks a bunch for your kind attention.
(Sincerely, Respectfully submitted—make it yours),
(Signature Printed – Legible Font)
(Name and Designations, if applicable)
(Phone Number – Preferable Cell Phone Number)
(Email Address and Website Address)
(Brokerage)
(Address)
(Social Media Handles)
(Tagline – People remember these and will quote them back to you)
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.
Subject: Amazing Time to Sell Your Home
Dear (Potential Seller),
Hoping that this letter finds you in good health and spirits. I am reaching out to you today to share with a shortage of homes on the market—it is an incredible time to sell. The present inventory includes only (# of homes) for sale. Sellers are benefitting from the influx of buyers who are looking for homes. Many of these buyers are willing to pay over the asking price, depending on the condition of the property and the home’s amenities.
Please allow me to set up a visit whereby I can share with you this great opportunity. You can call or text me directly at (cell phone #) or email me at (email address) with a preferred time and date.
Let me know if I can answer any additional questions and/or expedite any request.
Looking forward to visiting with you in the very near future.
Thanks a bunch for your kind attention.
(Sincerely, Respectfully submitted—make it yours),
(Signature Printed – Legible Font)
(Name and Designations, if applicable)
(Phone Number – Preferable Cell Phone Number)
(Email Address and Website Address)
(Brokerage)
(Address)
(Social Media Handles)
(Tagline – People remember these and will quote them back to you)
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.
Subject: The Time to Buy Is Now
Dear (Potential Buyer),
Hoping that this letter finds you in good health and spirits. I am so excited to reach out to you and share that with interest rates being so incredibly low, this is a great time for you to buy a home. Mortgage lenders are sharing that with interest rates presently at and under 3%, it affords the buyer $30,000 more in buying power. Please allow me to set up a visit. You truly don’t want to miss exploring this opportunity. You can call or text me directly at (cell phone #) or email me at (email address) with a preferred time and date.
Let me know if I can answer any additional questions and/or expedite any request.
Looking forward to visiting with you in the very near future.
Thanks a bunch for your kind attention.
(Sincerely, Respectfully submitted—make it yours),
(Signature Printed – Legible Font)
(Name and Designations, if applicable)
(Phone Number – Preferable Cell Phone Number)
(Email Address and Website Address)
(Brokerage)
(Address)
(Social Media Handles)
(Tagline – People remember these and will quote them back to you)
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.
Subject: Why Are You Paying Off Your Landlord’s Mortgage?
Dear (Potential Buyer Who Is a Renter),
Hoping that this letter finds you in good health and spirits. I am so excited to reach out to you and share that with interest rates being so incredibly low, this is a great time for you to buy a home. Mortgage lenders are sharing that with interest rates presently at and under 3%, it affords the buyer $30,000 more in buying power. With the help of a local lender, I would love to share with you that buying a home instead of renting could help you build future financial security.
Please allow me to set up a visit. You truly don’t want to miss exploring this opportunity. You can call or text me directly at (cell phone #) or email me at (email address) with a preferred time and date.
Let me know if I can answer any additional questions and/or expedite any request.
Looking forward to visiting with you in the very near future.
Thanks a bunch for your kind attention.
(Sincerely, Respectfully submitted—make it yours),
(Signature Printed – Legible Font)
(Name and Designations, if applicable)
(Phone Number – Preferable Cell Phone Number)
(Email Address and Website Address)
(Brokerage)
(Address)
(Social Media Handles)
(Tagline – People remember these and will quote them back to you)
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?
Subject: Let’s Increase Business and Double Our Database
Dear (Professional/Business Owner),
Hoping that this letter finds you in good health and spirits. I wanted to reach out to you to discuss an opportunity that could be mutually beneficial. I would like to explore a co-marketing program with you whereby you have an opportunity to increase your exposure to potential business and so do I. We both have client databases that we share information with that could be considered limiting. Let’s collaborate on an added value item that we can send to each other’s database as well as our own, thereby doubling our exposure to potential future business.
I am so excited about this venture and would love to set up a visit as soon as possible. You can call or text me directly at (cell phone #) or email me at (email address) with a preferred time and date.
Let me know if I can answer any additional questions and/or expedite any request.
Looking forward to visiting with you in the very near future.
Thanks a bunch for your kind attention.
(Sincerely, Respectfully submitted—make it yours),
(Signature Printed – Legible Font)
Name and Designations, if applicable)
(Phone Number – Preferable Cell Phone Number)
(Email Address and Website Address)
(Brokerage)
(Address)
(Social Media Handles)
(Tagline – People remember these and will quote them back to you)
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.
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.
Subject: Grateful for My Raving Fans
Dear (Raving Fan),
Hoping that this letter finds you in good health and spirits. The past (# of months) has been quite the ride. A friend of mine has compared this time to being in a sci-fi movie. I wanted to reach out to you and let you know you have been in my thoughts.
Since you are one of my “raving fans,” I always want to keep you “in the know” about what is going on in the real estate market. I would like to share amazing news for buyers and sellers. There is presently a low inventory of homes, making it a great environment for homeowners to sell. Mortgage lenders are sharing that with interest rates presently at and under 3%, it affords the buyer $30,000 more in buying power. If by chance you know a buyer and/or seller who would benefit from the present market conditions, I would welcome the opportunity to visit with them.
Please feel free to call or text me directly at (cell phone #) or email me at (email address) and let me know if I can answer any additional questions and/or expedite any request.
As always, I am so very grateful for your confidence, loyalty, and support. Hoping that we can visit in the very near future.
Thanks a bunch for your kind attention.
(Sincerely, Respectfully submitted—make it yours),
(Signature Printed – Legible Font)
(Name and Designations, if applicable)
(Phone Number – Preferable Cell Phone Number)
(Email Address and Website Address)
(Brokerage)
(Address)
(Social Media Handles)
(Tagline – People remember these and will quote them back to you)
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.
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.
