Cold-calling any lead can be a stressful and challenging task. And when a prospect is facing a home foreclosure, the entire ordeal becomes substantially more difficult to navigate. However, these leads also give you a chance to help distressed sellers while expanding your business.
Though it’s a tough approach to winning clients, the rewards can be huge for both you and those you represent. To that end, here are seven essential tips to help you succeed when cold-calling pre-foreclosure leads:
- Do Your Homework Before Dialing
- Lead With Empathy
- Be Clear and Transparent About Your Intentions
- Use a Script, but Be Ready to Adapt
- Address Common Objections With Confidence
- Follow Up Consistently
- Practice, Practice, Practice
Do Your Homework Before Dialing
You don’t want to stall out or start backpedaling as soon as you get a lead on the phone. Take time to research the property and find out as much as you can about the homeowner’s situation before picking up the phone. Familiarize yourself with the home’s value, but be wary of condition issues that may impact the selling price. That information builds credibility and lets you offer tailored advice.
For example, knowing how much time someone has left can help you suggest realistic options. You should also break down the pros and cons of selling versus letting the foreclosure process move forward. Focus on tapping into the equity of the home while the person has a chance to do so.
Lead With Empathy
Remember, pre-foreclosure leads are going through tough times. Therefore, you need to be empathetic. Start your call by acknowledging their situation and showing that you care, perhaps with a line like, “I know things might be stressful, but I’m here to help you explore your options.”
Explain that you are genuinely there to help and avoid forcing a hard sell. You want to be a problem solver, not a pushy agent who is only worried about a commission check. The person on the other end of the phone may need time to vent — let them. Hearing them out can reinforce the idea that you want to be helpful, even if that doesn’t lead to a new listing.
Be Clear and Transparent About Your Intentions
Trust is everything in these conversations, so make sure to properly introduce yourself and explain why you’re calling. You don’t want to “surprise” the lead when you transition to your pitch; let them know you are a real estate agent who helps people in pre-foreclosure. Be upfront to prevent misunderstandings and discuss how much the homeowner could earn from selling now.
Transparency turns a cold call into a meaningful exchange between someone who is facing a problem and you (the problem solver), and that’s a powerful way to start off a new relationship.
Use a Script, but Be Ready to Adapt
A script keeps you focused, but it can also make you sound a bit robotic. Start with a basic structure and ask open-ended questions like, “What are you thinking about doing next?” Listen closely to their responses and adjust your approach.
Be willing to break away from the script based on what they tell you. If they’re hesitant, pivot to offering information as opposed to pushing a sale. Being knowledge-focused can help leave the door open while the person thinks over what they want to do next.
Address Common Objections With Confidence
Objections like “I’m not ready to sell” are especially common among people who have lived in their homes for a long time and thus have a strong emotional connection to the property.
Be ready with calm, value-driven responses. For example, respond to “I’m not ready” with “That’s fine. Knowing your options now can help later. Would you like to discuss what’s possible?”
That kind of approach puts the homeowner in control of the situation and positions you as a helpful ally.
Follow Up Consistently
One call often isn’t enough. Many homeowners need time to decide, so plan to follow up regularly. After your call, send a quick email or text and check in again about a week later. Persistence shows you’re serious about assisting them.
Just be careful not to message them too frequently, as doing so can come off as intrusive. The entire process should be about serving the client and helping them during a tough situation.
Practice, Practice, Practice
Cold-calling is a skill that gets better with repetition. Practice with a colleague or record yourself so you can review your tone and delivery. The more you rehearse, the more natural and confident you’ll sound.
Over time, you’ll get better at handling objections smoothly. You can turn more calls into opportunities. Many homeowners may still reject your offer, but that’s okay. Winning foreclosure leads is tough, but it can be an effective way of growing your business.
Get Out There and Start Calling
Cold-calling pre-foreclosure leads can open doors to helping homeowners and growing your business. By preparing thoroughly, showing empathy, and being transparent, you can master this approach. Support your efforts with modern lead-gen tools for real estate agents. With these strategies and the latest solutions, you can turn challenging cold calls into new deals.
Steve Cortez is a seasoned real estate professional with decades of experience and owner of ArchAgent. ArchAgent brings together the tools and resources the country’s top real estate agents rely on in a single package for a low cost.