Circle Prospecting vs. FSBO and Expired Listings: Which Real Estate Lead Source Wins?
The Real Estate Lead Gen Showdown: Circle Prospecting, FSBO, and Expired Listings
If you've ever found yourself debating between circle prospecting, FSBO (For Sale By Owner), or expired listings for lead generation, you're not alone. Let’s dive into the heart of these tried-and-true tactics and see which method might just be your new favorite way to boost your real estate career—with an extra side of fun.
What Is Circle Prospecting and Why Does It Matter?
Picture this: you just listed or sold a property. Circle prospecting means you reach out to the surrounding neighborhood—the “circle”—to let homeowners know the big news. The goal? To spark curiosity and uncover potential sellers or buyers right where the action is happening. According to NAR research, 64% of sellers found their agent through a referral or after meeting them directly. That’s a big opportunity, and circle prospecting is all about planting those neighborhood roots.
Osiel Jo
FSBO and Expired Listings: The Classic Competitors
FSBO: For Sale By Owner
With FSBO, you’re calling homeowners who’ve bravely decided to sell without the help of an agent. Your job? Convince them that having a real estate professional (that’s you!) is actually a great idea. Sometimes the calls are warm, sometimes the homeowners...not so much. But the potential reward is a client that’s ready to list once they hit their limit with DIY selling.
Expired Listings: The Comeback Kids
Expired listings are properties that didn't sell during their contract period. When you call these homeowners, you’re stepping in as their "fresh start.” They might be disappointed or frustrated, but as the saying goes, "When one door closes, a real estate agent opens the next one." These leads are often motivated, they just need you to put a new spin on their listing.
Osiel Jo
How These Lead Sources Stack Up
| Method | Warmth of Lead | Typical Motivation | Biggest Challenge | Fun Factor |
|---|---|---|---|---|
| Circle Prospecting | Cool to Warm | Curious Neighbors | Requires Relationship Building | High (Meet New People!) |
| FSBO | Hot (Kind of...) | DIY Sellers | Breaking Through Skepticism | Medium (Debate Club Energy!) |
| Expired Listings | Warm | Disappointed Sellers | Addressing Previous Failures | Medium-High (Comeback Stories!) |
Why Circle Prospecting Is Secretly the Most Fun (and Effective)
Let’s face it, people love to chat about what’s happening in their neighborhood. With circle prospecting, you’re delivering the news of a recent sale, offering a free price opinion, or just being a friendly resource. It’s less "sales call" and more "neighborly check-in." Many agents find this approach more enjoyable, and, according to RISMedia, positioning yourself as the local area expert can vastly increase your long-term business pipeline.
Pros and Cons At A Glance
- Circle Prospecting Pros: Builds authority and trust, warm long-term leads, less resistance.
- Circle Prospecting Cons: Requires patience, more touches needed before a win.
- FSBO Pros: Owners open to selling, potential for quick listings.
- FSBO Cons: Resistance to agents, competitive.
- Expired Listing Pros: Motivated owners, opportunity to solve a problem.
- Expired Listing Cons: Frustration, may need to repair trust.
Conclusion: Find the Lead Source That Fits Your Style
Every lead source has its perks and challenges. Circle prospecting is perfect for agents who enjoy relationship building and playing the long game. FSBO and expired listings offer quick wins if you love a challenge (and don’t mind hearing "No thanks" a few times). Mix things up and see which method leaves both you and your future clients smiling!
Frequently Asked Questions
- What is the main advantage of circle prospecting in real estate?
Circle prospecting helps agents establish themselves as local experts and tap into potential leads before they have the urge to sell. - Is FSBO prospecting worth the effort?
It can be, especially if you’re persistent and skilled at building trust with skeptical homeowners. - How do you overcome objections in expired listing calls?
Listen empathetically, address their past pain points, and show how your approach is different. - Which lead source brings the fastest results?
Expired listings typically bring in quicker results due to owner motivation, but circle prospecting builds a more sustainable business. - How often should you follow up with circle prospecting leads?
Consistency is key; check in quarterly or after any significant market event in the neighborhood (Source).
![Google Ads (PPC) for Realtors Step-by-Step [+VIDEO]](/content/images/size/w600/2025/11/Copy-of-Copy-of-Blue-Gradient-Modern-Freelancer-YouTube-Thumbnail---2-.png)
