Here is a question we just got from a nice guy out in Ohio:
Hi, Walter! I’m just trying to get some kind of direction. I am in the Midwest part of country (Ohio), and in our area, a house can sell for $7,000 and up to 1 million. However, there are many $20,000 houses being sold (REO, foreclosures, short sales, D in L). We have prospects wanting us to list their homes so they can do a deed in lieu, and we make NO Money. We have prospects and clients who want to do short sales. These can be even worse because the banks will try and pay LESS and LESS and it is MORE paperwork.
What is your suggestion when you are dealing with the sale of a short sale property on the list side AND do you suggest doing deed in lieus? We are in business to make money and some of these things are just NOT money makers at all.
You just don’t know the genius of your question! I was sitting here, a little saddened by the type of “training” offered by some real estate companies. Let me further explain:
We are in a contingency fee business. People are not clients until you let them be clients. At the time you accept them as clients, you will have to work at a loss until close. The loss comes from you having to absorb your overhead. No top real estate agents work transactions of $7,000 or short sales with an uncounseled seller.
Choosing a short sale listing to work means the seller is motivated to do a short sale, has a reason to do a short sale, the lender does short sales, and all the other ingredients of a successful short sale are present. None of my coaching clients work low-priced listing prospects or short sales that have a low opportunity to come to fruition. We work better demographics.
Therefore, my advice to you is to work better demographics and do better seller lead generation so that you can help the people on the phone for a few minutes then send them on their way to one of the agents that work at “some other” real estate company.
When my REALTOR® clients experience a very low priced listing or a short sale that does not meet the pre-determined standards for success, they try to help the client with referrals and advice. They don’t take them as clients. For those of you who are horrified, let me say there are extenuating circumstances. I took very low-priced listings and even a long shot short sale here and there when the client was a long-term referral or repeat business asset.
Now to my real problem with your needing help after 23 years in the business…. You know what you are doing, but I will bet that your training coming from your franchise, board, or other training resource which probably specializes in social media. Nothing wrong with that but it tends to attract people outside the demographic you really want. You need to consistently go after your sphere with value and consistency. You have to go after the expireds with value, consistency, and a filter that will eliminate the type of listings that you do not want. These types of listings might be those that are too far away, types of property you don’t want, and prices that are too low, etc. The same applies to FSBOs, attorneys, CPAs, assisted living centers, and about 40 other demographic groups. You choose your clients rather than only having systems where the clients choose you.
Here is what will happen when you use my system of seller lead generation. Your saleable listing inventory will grow. Buyers will be calling. You will be very busy. When the email or call comes in to list a $7,000 lot or someone needs help on a low closing percentage short sale, you might just advise and refer rather than calling them a client.
With what you know after these twenty-three years, I could make you rich if you concentrate on the profitable business.
Walter Sanford has been designing and implementing real estate systems for 30 years. One of the most successful REALTORS® and now wealthy from his systems, Sanford teaches his systems and strategies through his products, seminars, and personal coaching producing the best results in the industry. Do what works, do what is proven. Hire Walter Sanford. Call our office at 800.792.5837, email firstname.lastname@example.org, or chat with us online at www.waltersanford.com.