Building a strong pipeline of leads is essential in real estate, and one of the most effective yet underutilized strategies is circle prospecting. Instead of waiting for clients to come to you, this technique involves reaching out to homeowners living near a recently listed, sold, or pending property in order to see who might express interest in selling. In this way, you can take more control instead of always waiting for listings to pop up, positioning yourself as the go-to neighborhood expert for when people are ready to move.

Why does it work?

• It builds brand awareness. Even if an owner isn’t ready to sell now, they’ll remember your name when they are.
• It leverages local curiosity. People love to know what’s happening in their neighborhood—and may be even more interested in what their own home may go for in the current market.
• It identifies potential sellers. Sometimes, homeowners will have been casually considering selling but haven’t yet taken action.

When done correctly, circle prospecting can create a steady stream of opportunities, keep your name top of mind, and, ultimately, lead to more listings and closings. Here’s how to make the approach work for you.

Step 1: Choose your target area

Start by selecting a neighborhood or community where you want to establish yourself. Good areas to target include those with:

• High turnover rates
• Recent sales or active listings (including your own listings or those within your brokerage)
• Homes that match current buyer demand

You can use MLS data or a platform like REDX, Vulcan7, or Mojo Dialer to identify neighborhoods with consistent sales activity.

Step 2: Gather contact information

To make circle prospecting work, you need accurate homeowner contact details. You can obtain phone numbers through:

• Public tax records (often available on county websites)
• A data service like any of the ones previously mentioned as well as Landvoice or Cole Realty Resource
• Your CRM’s neighborhood farming tools

Always cross-reference your findings with the Do Not Call Registry to ensure compliance. Any homeowner found on it can be contacted through another means, such as mailers or door knocking. And don’t make your list too large—focus on twenty to fifty homeowners in the area.

Step 3: Develop a winning script

The key to successful circle prospecting is having a confident yet natural script. Keep it conversational and value driven. Consider this sample one:

“Hi [homeowner’s name], this is [your name] with [your brokerage]. I wanted to share that a home just [sold/went on the market] in your neighborhood on [street name]. It [sold for $X/was listed at $X], which is great news for local homeowners! Are you curious about how this sale might impact your home’s value?”

If they show interest, continue the conversation:

“Would you like a free home valuation? I can give you a quick update on your property’s worth and share market trends specific to your neighborhood.”

If they aren’t ready to sell, shift the focus:

“I totally understand! Many homeowners still like to stay informed about their home’s value. Would you like me to send you occasional market updates?”

This allows you to collect their email and nurture the relationship over time.

In the end, remember that circle prospecting calls should be conversational, not salesy. The goal is to establish a connection, provide information, and uncover potential leads for future sales.

Step 4: Follow up with value

Many leads won’t be ready to sell immediately, which is why consistent follow-up is crucial. Circle prospecting is about building relationships, and that may take some time. After the initial call with a homeowner, work to stay top of mind through actions such as the following:

• Send market update emails every thirty to sixty days.
• Add them to your newsletter to provide real estate tips and info on local activities.
• Drop off a neighborhood report, or leave a handwritten note.
• Call back in a few months to check in on their plans.
• Invite them to a community event or seminar.

If you’re using a CRM to keep track of prospects and their responses, set reminders to check in every few months. A simple “Just wanted to see if you had any real estate questions!” text can keep the conversation going.

Step 5: Expand beyond calls

While phone calls are highly effective, circle prospecting isn’t limited to dialing numbers. You can also leverage multiple touchpoints to increase engagement.

• Door knocking: If appropriate in your market, this tactic can make a strong impression and build trust.
• Direct mail campaigns: Send postcards with recent sales data, updates, or a personal note.
• Social media targeting: Use Facebook or Instagram ads to reach homeowners in your chosen area with relevant market insights.
• Community involvement: Sponsor neighborhood events, host home value workshops, or engage in local online forums to reinforce your presence.

The goal is to stay visible and provide value. By diversifying your outreach, you will strengthen your brand and increase the chances of converting leads. In other words, when these homeowners are ready to sell, they’ll think of you first.

Circle prospecting is a long-term strategy that requires consistency, but the rewards can be substantial. Start small by choosing one neighborhood, then stay persistent with outreach and follow up with valuable insights. Over time, you’ll build trust to gain more listings, creating a reliable lead generation system that keeps your pipeline full.