Foreclosures – The Close https://theclose.com/category/niches/foreclosures/ Your #1 Source For Actionable Real Estate Advice Fri, 04 Apr 2025 12:38:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://assets.theclose.com/uploads/2017/12/theclosefbprofile2-60x60.png Foreclosures – The Close https://theclose.com/category/niches/foreclosures/ 32 32 11 Best Real Estate Prospecting Letter Templates for 2025 https://theclose.com/real-estate-prospecting-letter-templates/ https://theclose.com/real-estate-prospecting-letter-templates/#comments Fri, 04 Apr 2025 12:38:54 +0000 https://theclose.com/?p=3398 Check out our comprehensive list of letter templates to send to buyers, FSBOs, owners of expired listings, and more. Plus we share actionable tips you can use to write your own lead-generating copy.

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In an industry where emails and social media messages are instant, sending handwritten real estate prospecting letters can feel like a breath of fresh air. It’s a great way to make a lasting impression, especially if pulled off correctly.

In this article, I’ll share 11 real estate prospecting scripts plus some actionable tips to help you craft letters that actually get results. By the end, you’ll know exactly how to use prospecting letters to generate leads and grow your business.

1. Expired listing prospecting letter

Expired listings are a goldmine for leads since these homeowners already want to sell. Most often, the main reason a home doesn’t sell is pricing. Maybe they didn’t follow their agent’s advice, or their previous agent lacked the confidence to set the right price.

The key is to empathize with their situation and offer a fresh solution that shifts the focus from blame to getting their home sold.

Related Article
7 Expired Listing Letter Templates & Why They Work

2. FSBO letter

Homeowners opting to sell on their own usually just want to save money and might not realize all the work involved in marketing a home. Show them the real value you offer by sharing free, actionable advice — using one of our best FSBO scripts to guide the conversation and build trust.


3. FRBO market research letter

Not all sellers are the same. You’ll eventually encounter rental property owners who want to maximize returns. When talking to them, be direct and tell them immediately that you can get them a better return on their investment than they are now.


4. Absentee owner letter

The struggle for property owners who don’t live in the area is real. It’s not uncommon for a homeowner to move before they can sell or inherit a property in another location where they don’t live.

These unexpected landlords practically have to hire someone to manage their rental on their behalf. But you can offer a solution to their long-distance rental woes.


5. New agent introduction letter

When you’re just starting, there are plenty of ways to prospect, but heartfelt, handwritten real estate letters to potential sellers truly stand out compared to simple Facebook posts. It shows you put in the extra effort, and people appreciate that personal touch.

Check out real estate coach Sean Moudry’s sphere letter for an excellent example — hit your strengths and remind your network that you’re their insider in the industry.


6. Referral request

Real estate referrals are an agent’s honeypot and typically provide the largest pool of prospects they can tap into. When you reach out to your network, you connect with people who already know, like, and trust you, so you don’t have to spend time convincing them how awesome you are.

Reach out directly and ask them if they know anyone who might need your services. It’s also a great way to remind them you’re their friendly neighborhood real estate pro.

Related Article
7 Savvy Ways to Get Real Estate Referrals

7. Local business prospecting letter

Entrepreneurs and businesses can become great allies in your community. Show entrepreneurs that you’re a valuable asset by aligning your services with their business objectives.

Engage with genuine curiosity about their businesses and a willingness to provide meaningful support. Focus on building long-term symbiotic relationships rather than seeking transactional opportunities.


8. Divorce prospecting letter

Divorce transactions will register high on the emotional scale and require a patient, empathetic approach — traits that newer agents might still be developing. If you’re an experienced agent ready for a challenge, here’s a letter to help you connect with divorce leads and guide them through the process gracefully.


9. Probate prospecting letter

Like divorce transactions, probate listings come with so much stress and red tape that we generally don’t recommend them for new agents. While it’s true that probate listings tend to sell quickly, dealing with grieving families and lawyers takes patience and a few years of experience.

If you’ve done your homework and feel ready to take on the challenge, here is a letter offering empathy and showing off your agent skills.


10. Preforeclosure prospecting letter

Preforeclosure letters are not easy to write. But in a challenging situation, your letter and services just might help someone out of a tricky financial crisis when they most need it.

The key to converting these leads is empathizing with their situation and remaining optimistic and realistic. Here is a prospecting script you can use:


11. Open house follow-up prospecting letter

Obviously, you want to circle prospect before an open house. But if you want to make a more personal connection with your open house guests, a quick letter — or better yet, a handwritten card — will have an excellent return on investment.

Just remember to keep it light, short, and friendly. Here is an example of a real estate letter you can use for inspiration:

7 tips for nailing your real estate prospecting letters

Copywriting is about persuasion and choosing the right words to inspire action. Remember, a well-written letter can turn prospects into clients, while a weak one gets tossed without a second thought. To help you craft your real estate letters, I’ve compiled this list of best practices designed to improve your response rate.

Tip 1: Personalize every letter

Use the recipient’s name and adopt a friendly tone. Make your greeting feel warm, like you’re writing a letter to a friend. A personalized opening helps your message feel genuine, not as if you’re mass mailing.

📝Examples: 

  • Hello, Kim! I came across something that might interest you.
  • Hi, John! I wanted to personally reach out.
  • Hey Archie and Sam! I love what you’ve done with your home.

Tip 2: Grab attention

Try using an attention-grabbing lede in your opening paragraph. The goal is to draw your readers in quickly before they toss your letter out with the recycling. When you use a strong hook to get your reader’s attention early in your writing, you’re more likely to draw them into your story and keep them interested.

📝Examples:

  • Are you leaving $80,000 on the table? 
  • Imagine waking up in the home of your dreams every morning.
  • You won’t believe what your neighbor’s home just sold for!

Tip 3: Build a connection

Once your reader is hooked and interested in what you have to say, it’s time to make a meaningful connection. Do that by pointing out a challenge your reader is most likely facing and empathizing with their situation. Let them know you understand where they are and how they feel.

📝Examples: 

  • I understand how challenging the current market is and how it must weigh your decision.
  • Many homeowners are unsure about their next step in this market — you’re not alone.
  • I know how frustrating it is to see homes selling fast and wonder if you’re missing out.

Tip 4: Give your unique value proposition

Now that you’ve made a meaningful connection with your prospect, it’s time to set yourself apart from your competitors. Share what you do that makes you a better choice than any other agent. What do you provide to your clients that other agents don’t?

📝Examples: 

  • Unlike most agents, I have a background in home staging, which means I can help you present your home in the best possible light.
  • I have exclusive access to off-market listings, giving my buyers an edge in this market.
  • When you work with me, you’ll get an empathetic ear, a caring touch, my years of probate expertise, and the professionalism to see your transaction through smoothly.

Tip 5: Provide the solution

You’ve introduced yourself, made a meaningful connection, showed empathy for their current situation, and shared what sets you apart from the competition. Now, it’s time to present the solution to the prospect’s problem. If you’re wondering what the solution is, it’s hiring you. 

📝Examples: 

  • Let me simplify your home sale, ensuring you get the highest price for your home in the least amount of time.
  • You don’t have to figure this out alone—let’s create a plan that works for you and your goals.
  • With my proven marketing strategy, I’ll get your home in front of the right buyers and maximize your profit.

Tip 6: Include a call to action

Now that you’ve convinced them that you are the solution to their real estate needs, tell them what you want them to do next. This doesn’t have to be sleazy or pushy. Make it simple. Just give them some direction on how to get in touch with you so they can hire you.

📝Examples:

  • Send me a text or call me at the number below to get things started.
  • No pressure — just a friendly chat. Reach out at {your number} or {your email}. 
  • I’m here when you’re ready! Feel free to schedule a free consultation at your convenience.

Tip 7: Finish like a champ

Be sure to thank them for reading your letter and considering you for their real estate needs. It’s courteous, and you want to end on a positive note. Also, don’t forget to include all your contact information under your signature. Include your website too, so they can learn more about you and read your real estate testimonials.

📝Examples: 

  • Thank you for taking the time to read this and for allowing me to present my value. I hope you’ll consider working with me to sell your home.
  • Thank you for allowing me to introduce myself. I’d love the chance to earn your trust and help you achieve your real estate dreams.
  • I’d be honored to assist you with your real estate goals.

Frequently Asked Questions (FAQs)




Your take

Whether you’re reaching out to sellers, buyers, or investors, a well-written letter can spark conversations and open doors to new opportunities. I hope you’ve picked something up from our real estate sample letters. Do you have unique real estate prospecting letters that convert well for you? Let us know about it in the comments!

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How Smart Investors Decipher & Respond to Real Estate Market Cycles https://theclose.com/real-estate-market-cycles/ https://theclose.com/real-estate-market-cycles/#respond Tue, 30 Jul 2024 16:31:26 +0000 https://theclose.com/?p=59254 If you want to become a savvy real estate investor, you need to know what market stage your area is in or entering.

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For real estate investors to be successful, they must understand the market dynamics. The real estate cycle can be incredibly complex, but it can also be categorized into four relatively simple phases. A smart investor will take the time to stay up-to-date on market trends to understand where the market is, where it’s going, and how that impacts their investment strategy.

What Is the Housing Market Cycle?

The real estate cycle is the natural process of growing, expanding, and receding in the real estate market. It’s generally divided into four stages: recovery, expansion, hyper-supply, and recession. Each cycle phase is unique and impacts the real estate market differently, like price, vacancies, and inventory.

People generally estimate that the real estate market cycle takes an average of between 10-18 years. However, this can change pretty drastically depending on some of the factors that affect the market. Many different things affect the natural flow of real estate cycles, like the following:

  • Interest rates
  • Economic health
  • Demographics
  • Government policies
  • Real estate development
  • Business growth
  • Employment rates

Use this real estate cycle chart to help identify the state of the market (we’ll use this chart throughout the article to show the various stages):

Quadrant chart showing the four cycles of the housing market.
Market cycle chart (Source: CrowdStreet)

Why Investors Need to Understand the Cycle

If you want to be a successful real estate investor, you need to understand the market beyond a real estate cycle chart. Investing is a long-term strategy, and it’s easy to make poor decisions if you don’t understand how the market naturally ebbs and flows. Understanding the real estate market cycles will help you to do the following:

  • Know when the optimal times are to buy and sell
  • Adjust your pricing strategies for buying and selling based on the state of the market, demand, and pricing changes
  • Generate a higher profit because you have a long-term perspective
  • Avoid poor investments by making choices before the market makes a downturn

Understanding the housing market cycle is essential to make profitable investments. Learn how to plan even more effectively in our guide to making a real estate investment business plan.

Stages of the Housing Market Cycle

At any point, many factors affect the real estate market. However, every change in the market can fit into one of four stages of the real estate cycle: recovery, expansion, hypersupply, and recession.

1. Recovery

The first part of the real estate cycle is right after a recession when the market is trying to recover. At the beginning of the recovery phase, people still feel the effects of the recession. There is typically an excess supply of properties that doesn’t match a decline in demand. This phenomenon creates a drop in the prices of rent and properties.

Chart showing the recovery phase of the housing market cycles
Recovery stage (Source: CrowdStreet)

What investors should do during recovery:

  • Purchase below-market properties (best to do in the early stages of recovery)
  • Sell renovated properties that were purchased during a recession
  • Negotiate property prices to get undervalued properties or the best value for your flipped homes

2. Expansion

As recovery continues, some call parts of this phase “the honeymoon.” This is when the general economy is growing, employment rates are starting to improve, and demand for real estate is increasing. You’ll see signs of the expansion phase when properties sell more quickly, rent prices are starting to increase, and there is a higher competition for bank foreclosures. This is the part of the real estate cycle when supply and demand are the most balanced.

Chart showing the expansion phase of the housing market cycles
Expansion stage (Source: CrowdStreet)

What investors should do during expansion:

  • Research growing areas to invest in locations that are in high demand
  • Renovate or develop properties (high demand justifies the cost)

3. Hypersupply

The next part of the housing market cycle is when the pendulum swings a little too far in the opposite direction, and now the supply of real estate exceeds the demand for it. This can be caused by overbuilding during the expansion phase. Watch for this part of the real estate market cycle by looking for low unemployment rates, quickly selling properties, and increases in property and rent prices.

It’s common for some investors to panic when they find themselves in this spot on the housing market cycle graph because they know a recession is coming. You can always liquidate your assets, but it’s often a wise strategy to hold properties and generate short-term cash flow. However, it’s smart to prepare for an upcoming recession by adjusting your pricing strategy.

Chart showing the hypersupply phase of the housing market cycles
Hypersupply stage (Source: CrowdStreet)

What investors should do during hypersupply:

  • Hold properties and let them appreciate
  • Focus on generating short-term cash flow
  • Prepare for upcoming recession

4. Recession

Of all the real estate market cycles, the recession stage is the most daunting for investors. At this point, there is an overabundance of inventory that surpasses demand. This means there are more vacancies, and prices start to fall again. During this stage, job growth slows down, leaving fewer buyers and renters to fill your rentals. At the same time, home values increase more quickly. Even though recessions are typically challenging for rental property owners, slow periods of the economy are the best time to invest in real estate.

Chart showing the recession phase of the housing market cycles
Recession stage (Source: CrowdStreet)

What investors should do during a recession:

  • Buy distressed, undervalued properties with high long-term potential
  • Look for distressed properties or those in foreclosure
  • Develop a long-term rental or flip strategy for investments

Frequently Asked Questions (FAQs)




Bringing It All Together

Understanding the real estate market cycle can be overwhelming at first, but it’s an extremely important concept to master for aspiring real estate investors. Make sure to understand the ins and outs of each part of the cycle and learn how to recognize shifts in the housing market cycle to make the best decisions for your business.

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