What is circle prospecting? What’s the right way to do it?

If you want to generate more real estate leads, circle prospecting can be one of your strategies as an agent. To succeed, you need people skills, know-how about the local market, and some patience. But, what is circle prospecting? And, how does it work to get you more customers? Let’s find out, here. 

What is circle prospecting in the real estate industry?

Real estate circle prospecting means calling people in your specific neighborhood or gated community and asking if they’re planning to move or if they know someone who is. Basically, you’re reaching out and looking for potential business. 

It’s all about forming connections with potential clients and others in the targeted area. The goal is to establish your reputation as a helpful real estate agent in that neighborhood, so people think of you first when they’re ready to buy or sell their house.

So, imagine you’ve got a listing or you just closed a successful deal in real estate. Circle prospecting is like casting a net around that property. You reach out to homeowners living nearby, asking if they or anyone they know might be interested in selling or buying a home. 

Think of it as a more friendly approach than cold calling. These neighbors are already eyeballing the “for sale” or “sold” sign in their area, so they’re naturally curious. It’s your chance to start a conversation and possibly land a deal. It’s like knocking on their door with a reason they can’t ignore.

And you must plan your circle prospecting. It’s best to do it when you have something valuable to offer, like info on a recent home sale, an exclusive open house invite, or a list of off-market properties. If you’re working your area right, you’ll find plenty of chances to circle prospects with something people will appreciate.

Is circle prospecting better than cold calling?

Circle prospecting, like cold calling, has its challenges. But unlike cold calling, there’s an advantage. The people you’re reaching out to are probably already interested in the “for sale,” “sold,” or “open house” signs you’ve put up in their neighborhood. Circle prospecting lets you use this curiosity to your advantage. It’s your chance to get a foot in the door. 

What are the best circle prospecting strategies?

By following some steps, you’ll enhance your lead generation efforts and build a strong real estate network. Let’s break down each step to help you start strong.

Set your circle using technology and geographic targeting

This lead generation method is all about targeting a specific neighborhood or area for your real estate marketing. This could be around a new listing, a recently sold property, or any other location like where the agent lives or a chosen area based on price. It’s crucial to assess the potential leads in your chosen area based on data and zip codes to make the most of your efforts. 

It’s a good idea to utilize helpful tools such as GIS software, CRM systems, and auto-dialers to make prospecting easier. Keep in mind that success takes time and consistency.

Read more: What is an ISA in real estate?

Find the right contact information

Initially, finding phone numbers might seem easy. You can get lists from various companies. But, remember to respect “Do Not Call” lists. Contacting people who don’t want phone calls is a waste of time and can harm your reputation as a real estate agent. 

Plan your visit/call

When arriving, promptly introduce yourself and state your purpose. Dress according to the occasion; for instance, formal attire might not be fitting on a relaxed Saturday afternoon. Be mindful of timing to avoid busy periods, such as when children are returning from school. Actively listen during conversations by repeating names, posing open-ended inquiries, and mentally noting details. Even if conversation is limited, leave behind a business card or brochure. It will help facilitate future communication.

Use an effective circle prospecting script

While scripts, whether it’s for just listed houses, just sold listings, hosting an open house, expired listings, or information about a hot market, are helpful, the last thing you want is to sound robotic. Keep it natural and friendly. Have real conversations. Start by mentioning your recent listing or sale nearby. Ask if they’re interested in selling their home, and if not, learn about their situation and preferences.

Here’s a good example of a circle prospecting script:

Real estate agent: Hey there, it’s [your name] from [your brokerage]. I’ve got a new listing in [community name], and I’m wondering if you know anyone looking to move in.

Homeowner: Nah, nobody comes to mind right now, sorry.

Agent: don’t worry. The market’s a bit tricky lately, but I’m committed to getting my client the best deal possible. Just curious, any plans to move soon?

Homeowner: Nah, we just settled in last year. Not planning to move anytime soon.

Agent: I totally get it. This neighborhood’s awesome, right? By the way, I send out a monthly update on off-market listings, market reports, and real estate trends to all my clients. Even if you’re not moving, it’s a handy resource. Want me to shoot it over in a text?

See how easy and natural the flow of the conversation was? That’s what you should aim for. 

Have a positive mindset

Your mindset is crucial for cold calling or any sales marketing work. Remind yourself why you’re doing it. It could be for your family, to grow your real estate business, or to simplify the home-buying process for your clients. Or, all of the above. Remember that positive thinking leads to positive outcomes. 

Be patient and persistent

Keep in mind that circle prospecting may not have a high conversion rate. It could take about 50 to 60 calls to get just one lead. So, you need patience, a friendly phone manner, and the ability to handle rejection well.

When you circle prospects, use classic marketing methods such as knocking on doors, making calls, sending mail, and using social media. Keep your message clear and focused. 

Think of it like planting seeds in farming. If you plant them in the right places and care for them, you’ll see results eventually. Stay patient but active with your follow-ups. 

Keep your circle small 

Resist the temptation to expand your circle too much. Bigger isn’t necessarily better in this case. A smaller, focused circle can generate more interest within a close-knit community. It’s best to stick to around 20 to 30 (no more than 50) homes near your listing for optimal results. This way, you’re targeting homeowners with similar properties and a vested interest in your listing.

Follow up

Following up is vital. Circle prospecting isn’t just about immediate sales but also nurturing future business. Keep sending valuable information and updates on market conditions. Try your best to be their top-of-mind go-to real estate resource.

What is circle prospecting: Key takeaways

To succeed in real estate circle prospecting, identify successful neighborhoods. Customize your strategy based on past sales achievements. Cold calls, door-knocking, open houses, and local events are effective lead-generation methods. Emphasize recent successes in the neighborhood during cold calls, maintaining a genuine, friendly, and positive demeanor. Highlight special offers while emphasizing the benefits of working with a neighborhood expert. It will help you distinguish yourself from other agents. The ultimate aim is to connect with more homeowners, build relationships, and become a familiar presence in the neighborhood.

Written by Ramona Sinha. August 8, 2025

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.