Hot Prospecting Definition of prospecting: the continuous set of activities performed by a sales partner that will ultimately allow the sales partner to get a “ face-to-face” appointment with a buyer or seller
The flow chart of prospecting • Contacts: someone you have had contact with by buying or selling • Leads: someone who has said “YES” they might be interested • Prospects: someone you have an appointment to show a home or a listing presentation to make on their property (will they get in the car with you on Saturday?) • Clients: someone who has written a contract to list their home or purchase a home with you
Categorized your clients • Hot Warm Cold Dead • 1 2 3 4 • A B C D
Contact Strategies • Ready to buy Right away Marry them and don’t let them know your site! • Ready to buy 1 to 6 months Stay in close touch, once or twice per week • Might buy “Eventually “ Put them on a mailing list and contact them 4 -6 times a year • Lost the need Put them on your mailing list, to buy or sell and contact 2 – 3 times a year
Average Agents Income Flow • I • N * * ** ** * * • C * * * * * * * * • O * * * * * * * * • M * * * * • E T I M E
Activities must be Frequent and Continuous Active prospecting activities Cold and warm phone prospecting Door knocking: Farming Face-to-face: “seven second presentations” You go to them
Activities must be Frequent and Continuous Passive prospecting activities Advertising Floor time Open houses Farm mailings They come to YOU!
Follow up to activities • Follow up notes to open-house clients • Follow up notes to people you have met • Follow-up calls (within “ Do Not Call” guidelines only)
Effectiveness of various types of prospecting • Mail outs 2-1000 • Phone calls 1-100 • Door knocking 1-100 • Expired listings (in person) 1-20 • Expired listings (mailings) 1-100 • FSBO (in person) 1-20 • FSBO (mailing) 1-100 • Print advertising 1-10,000 • Open houses 1-10 • Floor time 1-10
Do your prospecting math Collect your “NO” rejections and have some fun • $300,000 home at 3% commission = $9000 • 60% agent commission split = $5400 • 100 “NO’s” before getting a “YES” = $54.00 per call Every time you get a “NO” it is worth $54.00 to you!
Phone and Face to Face Prospecting They should always be: • 1. Be Brief • 2. Be Polite • 3. Be Direct
What to do when you get a “YES” You should always: • Ask for an appointment to meet • Offer to show them what you can do for them • Find out what THEY are looking for • Confirmed the appointment • Thank them and get off the phone or leave the house!
FSBO’s (For Sale By Owners) What you should know: • Nearly 90% of FSBO’s end up listing with an agent • FSBO’s change their own oil, as they feel they can do everything themselves • Working FSBO’s is like shooting fish in a barrel • Average FSBO list after eight weeks of trying to sell themselves
FSBO’s (For Sale By Owners) • The average agent contacts a FSBO 3 times • Persistence pays: there are only two reasons to stop calling a FSBO 1. They have sold or are listed with another agent 2. They had change their mind and now don’t want to sell.
FSBO Campaign You should contact them: • 1. Called to see if they will pay you a commission if you bring them a buyer (yes or no) • 2. Make an appointment to see the home so you can tell your buyers about it! • 3. Meet the FSBO and give them a card. Ask them if you can stay in touch to show their home when you find them a buyer. • 4. Set a schedule to follow-up and… Follow-Up – Follow Up – Follow Up
Expired Listings Create a system for follow-up: • - The date expires • - Two weeks after it expires • - 30 days after it expires • - 6 months after it expires
Sphere of Influence What to look for in a Sphere of Influence: • Usually, a higher referral rate than other types of prospecting • How many names to having your phone book • Do you have a good accountant? • Hand-written notes are very powerful! 3 notes a day x five days a week x four weeks a month = 60 personal notes • It’s not about your friends and acquaintances buying or selling. It’s about every one they know that might buy or sell.
Geographic Farming • Choose area – drive the area and note how many or who has the listings • Call Orange Coast Title for owner/non-owner names • Create a marketing plan to make contact, a minimum of once a month • Deliver scratch pads, postcards, refrigerator magnets, newsletters, etc. ( an item of values) • Be consistent. If you don’t farm consistently you might as well not start. You want to become “ Famous” in your farm
Geographic Farming • The ideal farm is between 500 – 1,000 properties depending on your budget. • Farming Math: 1,000 homes in an area with a 5% turnover rate per year will equate to 50 listings. If you have 10% of the market share in that neighborhood, you will have five listings in one year. If you have 30% of the market share, you will have 15 listings!
Geographic Farming Something to keep in mind when farming: the person who is going to sell their house next month does not know it today. There is going to be an event that will trigger the sale but the event has not happened yet. (Death, birth, job transfer, job loss, job promotion, marriage, divorce, etc.)
Geographic Farming • How long will it take? Geographic farming is a long-term investment. Seeds need to be planted and watered to grow. Only after much “farming” do you reap the harvest • How much as a cost? Farming costs can vary substantially depending on how you design your campaign, what materials you decide to mail, and what mailing methods you use. First class mail will cost more than bulk mail.
Geographic Farming • Bulk Mail: for bulk mail, Dilbeck Real Estate offers a program that will reimburse to sales partners for a portion of their direct mail costs. The amount of reimbursement is based on the commission schedule at the time of the mailing. The company will reimburse up to $.20 per piece for the allowable number of pieces.
How Good of a Job Are You Doing Prospecting • Here’s a question for you: Take any prospecting activity and pretend this one activity is the “only” activity that you are allowed to perform in real estate to make money. Now ask yourself, how you would do it differently
The “SEVEN Second" presentation “Will you do me a favor? I’d like you to keep my card. When you know of someone interested in buying or selling Real Estate, ANYWHERE, Will you please ask them to give me a call?”
Prospecting Make Prospecting a Habit! Prospecting is either a habit or a problem, but never both. Make prospecting a daily habit. Just like marketing, you never stop prospecting. Make prospecting activities a part of your daily calendar and where ever possible, make it automatic by using a contact management system like the Real Living Business Center. • By scheduling prospecting into your daily calendar, it will become a habit and not a problem.
Floor time…. Do’s and Don’ts • You must know your inventory, both listings and other well priced homes on the market • Make sure you have seen ALL of our listings in your market place, whether they are listed by your office or another Dilbeck Office • Look at the ads that were advertised. Talk to the previous floor agent or the receptionist about what properties buyers have been calling about
Floor time…. Do’s and Don’ts • Always be familiar with 3-4 listings that you feel are good values and preferably in various price ranges that you can discuss with perspective buyers. You never know who you may run into at the market, car wash, soccer games, etc.
Why Open Houses? • Emailing • Door Knocking • Distribution • Phone Calling • Mailing • Marketing system that builds on Multiple Prospecting Techniques
11 days before (Wed) • Familiarize yourself with the Property • Familiarize yourself with the Neighborhood • Determine High Traffic areas • Select the property YOU want to hold open
11 days before (con’t) • Consider additional agent to assist • Confirm with Listing Agent • Prepare Advertising • Send to Ad Coordinator • Know regulations regarding permits, flags and balloons
10 days before (Thurs) • Select Area(s) to Invite • Surrounding Neighborhood • Lower Priced Area that would move up to this property • Your Prospects • Your Sphere of Influence
10 days before (con’t) • Determine Marketing Piece(s) • Invitation • Flyer • Door Hanger • Create or Order • E-Flyer
9 days before (Fri) • Preview Property • Preview Comparable Properties • Active • Contingent (if possible) • Preview Neighborhood Properties
6 days before (Mon) • Mail Invitations • Install Open Sunday Rider • Door Knock • Invitations • Door Hangers
5 Days before (Tues) • Have Escrow Prepare Buyer Closing Costs • Have Assurance Mortgage prepare Financing Flyer • Continue Marketing Efforts that you selected
4 Days before (Wed) • Collect Local Area Information • Chamber of Commerce • School District • Association of Realtors • Schools • Shopping • Parks • Transportation
4 days before (con’t) Start the process over for the next Open House Prepare E-Flyer as Open House • Personalized with your name (if not your listing) • Make copies • Email to Sphere Of Influnce, Prospects
3 Days before (Thurs) • Prepare Handouts for Open House • Copy of E-Newsletter • Local Information • Check comparable properties • Availability/Status • Open same day?
2 days before (Fri) • If using laptop, prepare slide show of comparable and or neighborhood properties • Prepare, Personalize, Print Active Comparable Listings from MLS as handout
1 day before (Sat) • Add to Craigslist as an Open House • The later in the day the better to get better placement when searched
Open House Day • Gather Information to Take • Flyers • Business Cards • Local Information Check advertising to be aware of other open houses in the area • Name Tag • Comparable Information • Guest Book or Registry • Laptop
Open House Day • Stop at the Market • Buy a bag of ice • Put in kitchen sink with water bottles • Dry Candy/Mints • Flowers • Gift Card for Drawing ($25)
Open House Day Arrive in time to set up • Go to the home FIRST! • Prepare home for showing • Get seller’s permission • A/C or Heat • Fireplace • Candles or Air Freshener • No Animals!! No Land Mines • Lights On, Drapes Open
Open House Day (con’t) • Put note on door…back in xx minutes • Go to furthest point out and place open house signs • Often consumers will follow you to the house…and you’re ready!
Actual Open House • Wear your name tag • Your safety is most important. Be aware of your surroundings and security of the home. • Your attitude is key!
Guests Arrive • Greet them with a warm welcome • Ask them to sign the guest registry on your laptop • “The seller requests that anyone who wants to see the house please give their name and contact info”
Ice Breakers • Do you live in the neighborhood? • How did you find out about this Open House? • Are you working with an agent? • What size home are you looking for? • Have you seen any homes that you’ve liked?
During the Open House • Have your laptop running a slide show of comparable homes • Offer copy of comparable homes that you have personalized with your name, email, websites etc • Buyer Broker Agreement…just in case you can sign one up! • Buyer Sale Package