Free Stuff - Ask Wally
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Current Q & A
(To view our archives, please click here.)
5/02/08
Q: I have just been reviewing several things as ideas to offer REALTOR® partners and in this section you write: “What do I say? The $100 close magic question.”
Dumb question, but is there a magic question and what does the REALTOR® say or is it all of the questions on the 5 page survey that follows? Please let me know.
Bill West
Clark, Welsh Mortgage Group, Inc
Indianapolis, IN
A: This refers to questions that a REALTOR® asks a buyer and another set of questions to ask a seller. The reason for the $100 is that if the assistant asks all the questions and the transaction ends up closing then the assistant gets $100. These lists of questions for buyers and sellers are two great items for a lender to give to an agent.
4/29/08
Q: We have been telemarketing for 15 years and have been working within the FTC guidelines since the DNC law has been in effect.
I recently noticed on the Internet that you have Phone Scripts and Moving Beyond the Do Not Call. We have all the scripts from you in the past and have made great use of them. We are wondering what your tips would be for moving beyond the do not call.
We currently mail the expireds and are getting an excellent response. We are wondering if you have any other suggestions for us.
Have a great day!
Susan Dauber
The David Morris Group
A: FSBOs do not come under the DNC law when you are calling for the express purpose of finding homes for buyers. The DNC law is not being enforced against real estate agents, so your competition is calling. Most money in telemarketing comes from your data base with a good script.
4/18/08
Q: For some unknown reason, over the past several weeks I have received numerous (almost daily) calls from out of area agents, asking me to open my properties for them or their clients to see. These agents are from out of the area and do not have local lock box access.
I have suggested that they join our board for a short time, a one-three month membership. They are unwilling to do so, and accuse me of being uncooperative and unkind, and unwilling to cooperate with someone who “is just trying to sell my listing.” When I have sold out of area properties, I’ve joined that local board for a quarter. It seems an agent who wants a commission, should be willing to invest a few hundred dollars in order to earn a commission.
Is there a good way to handle these calls?
Valerie
A: Great question! Have them show business card and driver’s license when they pick up the key at your office. You might want to call their office to make sure they are a REALTOR, too!
4/09/08
Q: We’ve been asked to submit a couple of paragraphs on the current market for a newspaper editorial. We don’t want a doomsday forecast. So, what could we say to the press about the market?
Andrea
A: Let's be real – our market has some great strong points:
1. (insert strong points)
2. (insert strong points)
3. (insert strong points)
4. (insert strong points)
5. (insert strong points)
Bottom line, the whole world has our town on their shopping list. Like any commodity that has gone up 400% in 10 years, there are people who bought at the top without holding power.
I have been admonished and chastised by peers, affiliates, and clients for two years at the top of the market. All I said was that you should have a down payment to buy real estate. You should have an income to match increased payments on variable loans. You should have staying power. You should buy real estate intelligently while it is close to the top of the market and have a holding period of 5-7 years.
Well, guess what? It is happening again, just two years later. My advice is to have a tough negotiator on your side and pick up bargains on world class real estate that might not be repeated in a lifetime. You should leverage as much of this 6.5% stuff as you can. Start thinking as if it was 1997 again and start moving your assets into real estate again.
The reason that I am the top Realty Executives agent in the world is because I understand market trends before they happen. My clients who followed my advice are thanking me every day.
4/06/08
Q: What would be a good script to use as a follow up for the just sold cards?
Thank you,
Ruth Gibbs
RE/Max Bay Point Realtors
A: “Good morning/afternoon/evening. My name is Ruth Gibbs, and I work for the top real estate agent in your area, Jamie Paradise. We sent you a post card about a recent sale in your neighborhood at ________________________ and we were wondering if you know of anyone else in your area who is thinking about selling.”
On the card, it should say: “This market requires a substantial amount of pre-planning to achieve top market prices. Please call Jamie for a free PRE-listing consultation!”
4/02/08
Q: Give me 5 reasons why it is a great time to sell your mansion and purchase a step down property. Got a call from a postcard I sent out in the farm, I am trying to break in, and he left a message that said “Although it may not be the best time to consider selling….” “Two of our four children have moved out….” Mine are:
- Although they will be selling their home for less than they want, they will be in a “powerful position” to make a very strong offer and killer deal on their “step down” property.
- By making the changes today, they take advantage of today’s rates.
- By stepping down and buying in a down market, they take advantage of the lower property tax bracket.
- Tons of inventory, when previewing property, they actually have a choice.
- Competition for a home like theirs is balanced, not low and not high.
Need stronger reasons…can you help?
Tammy Lathrop
A: Buying up in a down market is the play. Without trying to sound too negative, here are my suggestions:
1. When you buy down, you have a chance to reduce the interest rate on your loan.
2. When you buy down, you have the chance to reduce the principal on your current loan.
3. When you buy down, you will save on insurance every month.
4. If you use Prop. 55, you can transfer your tax basis.
5. If you buy down, you eliminate the heating, cooling, electricity and maintenance on those rooms you don't use.
6. If you buy down, you have the opportunity buy a bargain and sell your home at top dollar. That's what top agents do.
7. If you buy down, you head off potential financial problems sooner and save your credit -- the ability to get "A" loans.
8. If you buy down, you can spend more time doing the things you love rather than maintaining real estate.
Tammy has saved some of her clients’ credit ratings, equity, reputations, and even marriages by putting their next move in her hands.
3/24/08
Q: Hi Walter,
I have a unique situation. I have a seller who owes $650,000 on his mortgage at 8% interest with monthly payment of approximately $4500 per month. He owns property in Las Vegas. He has his own business, and he has sent the lender his balance sheet statement. He got divorced 8 months ago and currently pays alimony of approximately $3300 per month. He has received roughly 25 phone calls from other REALTORS®. The listing was cancelled today in the MLS and it was last listed for $399,000.
He said he has spoken to the lender and the lender’s manager about his situation. Right now, he is prepared to just hand over the keys to the lender and walk away. He said that I can call him back if I have a plan that can get him out of this mess. Please advise.
Dulce
A: Answer #1:
Tell him that you can mitigate the damage to his credit if he lets you sell it and do a short sale.
Question #2:
Okay, but what about his property in Vegas? Will the lender even allow the short sale since he still has assets?
Answer #2:
The lender is lying if he or she tells you the bank is doing a short sale for any reason except to get out of a foreclosure. It does not matter that he has an asset. Where did you learn that? They have to judicially foreclose to get assets, and they do not do that. If they tell you there has to be a need or they have too high a net worth, they are not telling you the truth. They don't care about need or net worth; however, if they can convince you of that, maybe they will keep you in the house?
They want a financial statement to see if the client lied on the loan application to begin with. If they can prove that, then they can sue your client or put the client in jail. These are all negotiating tactics. Please read all the short sale letters in the letter book.
Take the listing, price well, get an offer, and submit to bank with my letters. A bank can lose more than 50% of their loan amount in a foreclosure, and that is the only reason they will settle with a short sale. If he can do a deed in lieu of foreclosure, then he should, but most lenders want the clear title that a foreclosure affords them.
3/24/08
Q: Hi Walter,
Here’s my question. How can I keep the back up offers “involved” in the property and willing to wait knowing that they are only a back-up? I don’t want to be in the position I am now, where I finally get an answer from the bank and all the back-ups have gone away.
Thanks and have a good week-end.
Valerie
A: Great question, Valerie! The most frustrating item in short sales is keeping a buyer when a bank employee decides if the offer makes sense for the bank, all the while they really just would be as happy if it went to the foreclosure department. If it goes to the foreclosure department, their work stops and their pile gets lower.
The first step is to tie down the first or best buyer with a large deposit and eliminate the contingencies ASAP. If the buyer wants a deal, they have to prove they can close with pre-approval, and you have to have a semi-intelligent idea of the repairs needed.
Next, write in the contract that the bank must respond within 45 days; however, the buyer agrees to wait up to four months for a resolution to the negotiations. This is the only way the listing agent can invest the substantial recourses necessary to achieve the goal of a sale. The buyer must back up that four month promise with at least a $20,000 deposit to insure the wait.
You are crazy if you let a buyer waste your time trying to get them a great price and an extremely high LTV loan. The problem is the inspections. This is where your affiliate alliances come in.
Have them do a quick walk through to see if they find any major repair or replacement needs. Get these items paid for by the most motivated client or split up some costs. The best is to get your motivated seller to front $500 for inspections and appraisal with the lender.
You, the listing agent, always choose the lender. You can't go into escrow and the negotiation process with questions!
Next, give the short sale lender a time limit. Send them a care package every week with the local negative press. Call every three days. Be the client that they can not wait to get rid of. Be a lender's worse nightmare, yet remaining nice, professional, and always trying to be the best friend to the stockholders of the bank.
Back up your play with keeping it in the MLS, accept back up offers and keep them in the loop by CC-ing them and their agents every step of the way.
Does all of this sound like work? Show the lenders what you do when you demand 8% and for them to come back with a larger net request, if they don't like it. Remember the commission agreement has nothing to do with them. So if they want more, have them ask for it and watch you get it from the buyer, seller and cooperative agent.
To answer your question quickly -- it is easier to keep your best buyer than keep the back ups interested.
3/17/08
Q: Hi, Wally! In a lot of real estate contracts I've seen, the mortgage contingency (in the event that the buyer is unable to obtain a loan on given terms within a certain time frame) gives the seller a chance to get one for him on no worse terms within a like period of time after the buyer's notice of his inability to obtain said loan. Have you or would you ever suggest to a seller you were working with that they enforce that language?
Given the condition of the markets these days, and given that not all lenders, mortgage brokers or loan officers are equally capable or equally equipped, it would seem to me that having a strong lending affiliate on one's team would be a good way for a “selling” agent or broker to provide added value. I'd be very interested in reading your thoughts.
Juan Boldizsar
Pan American Mortgage
Chicago, IL
A: Hello, Juan! If a buyer has tried and failed with a lender, you have a weary buyer and seller. Enforcing such a clause becomes a real energy sucker. I never wanted to get to that point. That is why I sold my lender to each of my buyers and sellers. My buyers and sellers signed contracts before I would work with them. If my buyer signed a contract, one of the conditions was that they used my lender. My sellers were sold on the concept of a counter offer in the case that their buyer would choose their own lender. The counter offer would say something like: “Buyer to be pre-approved through Juan Boldizar. After pre-approval, buyer is free to use any lender that provides written pre-approval with no contingencies."
From my perspective as a top agent, I would rather have you up-front rather than clean up. You need to convince the top agents in your town of this concept -- which is not hard to do.
3/17/08
Q: Hello, Wally. I am fairly new in the real estate business and I do a lot of open houses to generate buyer and seller leads. The problem I am having is that people seem hesitant to list their contact info on the sign in sheet. When they do, most of the time I can't read it or they only put their first name, etc. What is a good “line” to say encouraging people to sign in and want to give me their contact info without sounding too harsh? Thank you for your help! Mrs. Shaw
A: You are going to have a lot of pain if open houses are your only form of lead generation. Supplement with another seller lead generation system and use your listings as your buyer lead generation method. On your question, why follow up with mean people? It only drains your energy. Welcome them with -- "Good afternoon. My name is Walter Sanford. May I have your name? Are you a buyer or seller today?....”
If they are sellers, offer them your free 24-hour phone value analysis of their home. When they take it, go for the contact info.
If they are buyers, offer them the free daily MLS update on new listings that meet their exact criteria. Also, let them know that this will also entitle them to the 10 free levels of inventory to which you have access and inventory that no other agent will ever show them.
If they are lookers, try to sell them on one of the above.
Stop asking for things from people until you give them value.
2/26/08
Q: Hi, Walter! I am a new agent in Canada. I saw you last year when I wasn't quite finished with my licensing course. I thought that you were just great, but I didn’t realize the importance of many of the things that you had to say. However, I have referred to your free info on this site numerous times. It’s amazing that you seem to be the only speaker who actually gives honest information without catches!
Anyway, I was wondering – are you coming to Manitoba anytime soon? Also we are in a real seller’s market with low inventory, lots and lots of agents (lots of listing competition) and bidding wars prices are way over list with many offers on them. I have done a small amount of biz, but really want and need to throw my hat in the ring. Do you have any advice or directions for a novice who wants to swim with the big, well-known fish? I am fine when I am with the clients. I did sales for years in a territory, but I am new at doing the hunting for clients. Also, I get absolutely no direction from my broker except how to pay his bill!
Connie
Winnipeg, MB
A: Please concentrate on getting about 5-10 listings and all else will follow!
2/11/08
Q: Hi Walter,
I came to your seminar in Richmond, VA last fall. It was an awesome experience and I purchased a lot of your merchandise. One of the purchases was Letters 401: The Advanced Course. The letter on pgs. 294-295 is one that I want to use, but I can not find the web site referenced www.waltersanford.com/divorce, which would provide 27 services for divorcing couples that you provide. Help!
Terri Brennan
Option 1 Realty
A: Those services are usually local in nature. They would be items that we discuss all the time such as:
On the purchase side.....
1. Pre-approval letters generated by major lenders at the best rates and at the lowest costs to be used in negotiations.
2. An exact comparison sheet on all offers so as to prove the value of any new purchase.
3. Systems set in place to enable simultaneous closings with any sale
4. Showing appointments made to accommodate the client's schedule
5. Complete PRIVACY in regards of properties shown
6. Complete inspections done and repair negotiation so that moving in without mechanical problems is virtually guaranteed.
7. A complete liaison service where we will keep your attorney up-to-date as to progress and clear all contracts through their office.
On the selling side....
1. If necessary, separate update sessions on the success of the marketing plan
2. Appointment only showings so that any disruption of the marketing process is mitigated
3. A personal showing representative from our office can attend all showings.
4. An exact net sheet on all offers, guaranteeing proceeds.
5. Complete discretion of any personal information disclosed by the partners in the sale.
6. All offers personally delivered to the representative attorneys, if applicable, on all offers.
7. All tax ramifications taken into account and discussed so that parties can properly question their tax representatives.
I hope this helps in trying to determine what your personal services to a divorcing couple may be.
2/07/08
Q: I’ve been getting the (*&$ kicked out of me the last few days on old expireds and follow up calls where people have low motivation and say they may sell in the future, etc. I just can’t get people to commit and it’s driving me crazy. I’ve been asking why they were selling and what has changed. They continually say that they are downsizing and nothing much else -- just will sell in the future maybe. HELP!
A: You’re a wimp! These people are talking to you! Try to help them! Ask why they might consider a move then refer them to other agents in other towns. Help them refinance, and put them on Email alerts for properties that come on the market. Send them a newsletter and YOU GET A DATE FOR A CALL BACK! Cut that requested call back time frame in half then put it into your database for a call back….then move on, buddy!
1/28/08
Q: I live in one of the areas hardest hit by foreclosures in southern California. I would like to stay focused on expireds and FSBOs, but find myself asking if I'm missing the boat by not focusing on getting REO accounts. What is the best use of my time? Let's face it, everyone (REO agents, broker/managers, trainers, etc.) What is going to be the best option for me, which may or may not be in my own best interest as an agent? You seem to be an honest man. Where do you suggest I focus 100% of my efforts? Why or why not? Thank you! Bobby
A: Why devote 100% of your time on anything? I had a daily expired program, a lender-run FSBO program, and a short sale program. I also put two field personnel on staff to do the REO/BPO stuff. Take the low-hanging fruit first.
1/22/08
Q: Walter, I’m curious on how you would answer this question during a pre-listing presentation: “If I give you the listing, what are the first seven things you will do to sell my property in the first week?”
A: Here it is, Scott:
“That is a great question, Mr. Johnson. How did you come up with the number seven, because I have a 400-point marketing plan here in my presentation?”
(wait for response)
“Okay, here are the first seven items designed to get the local real estate community talking about your property with their buyers.
1. We will send just listed cards to not only about 250 of your neighbors in the area (since they have friends who love the neighborhood, too!), but also, we will send the same card to my database of loyal clients who talk about new properties with their family, friends, and co-workers.
2. We will then call on those people who have received the cards and verbally request that they try to remember anyone in the neighborhood thinking of moving up (or down) and whether or not they know of anyone in their sphere of influence who might be interested.
3. Next, we will research the last three years to find all the agents who have had a sale in this area which falls in the same price range. We will appeal to their ego by congratulating them on their successes and inquire whether they had any one else interested in the same area which was generated from their sales effort. I will attempt to reach them by Email and phone. If I cannot talk with them personally, I will direct them to your custom website, which has your address as the URL.
4. The three finest websites in the world for this neighborhood are Realtor.com, (Your Company Site).com, and (your personal website).com. Let me show you the enhanced versions of my listings on these sites. Allow me to show you how my search engine strategy works in directing you to these sites. When you compare my promotion for your home to the home down the street also for sale, you will immediately see why my internet leads are the highest in the office. (This process will require a Wi-Fi card from your cell provider.)
By the way, Mr. Johnson, will I be having the honor of marketing your property is I satisfactorily answer this question and also show differentiations between my initial effort, what you were expecting, and what the other agents supply?
5. We will be holding the first and only open house this Sunday. This open house will be fully-advertised to 400 neighbors by direct mail, to all the agents in the MLS (over 2,800), in the newspaper, and with signage that will attract drive-bys from six square blocks. We will have the open house hosted by our lender, who will pre-approve potential buyers, and all visitors will be queried about their needs then followed up with by phone and Email afterwards.
6. I promise all my buyers in my BUYER'S ASSISTANCE CLUB that they get first notice of a listing before it hits the MLS. These "secret properties" tend to create more interest.
7. I have train all the agents in my office on how to sell and market your property to the buyers who call and Email in. I will also demonstrate with them on how to talk about the best features and benefits like your pool and wonderful décor, but I will also train them on how to overcome any perceived negatives like the busy street.
All of that will be done in the next 48 hours for your home. Here is my marketing plan for the rest of our days together. Many items are repeated many times; however, I am sure you know that 95% of any marketing plan is how the public perceives the value that the property offers compared to the price. I will handle pushing the positive perception. You are responsible for the price.”
Then you close him, “Now, I will need your OK by signing right here.”
1/22/08
Q: Walter, I hope this Email finds you doing well. I met you a few years ago when you spoke at the Monterey County Association of REALTORS® annual meeting. Of course, I bought everything you sold that day! Since then, I have opened my own company. I now have 8 other REALTORS® working with/for me.
My question is regarding open houses.
1) Do you believe in them?
2) Do you have any specific training aids for helping agents to improve their time in a house? Items like flyers, a list of questions to go, etc.?
By the way, I used your 15-minute open house tour, and it really does work! What we did was I had an agent at each house, or one that left ahead of me leading the caravan to ensure that we had one getting to the house, having it opened, then one left behind to close up. It worked great!
I appreciate your time and energy and for helping all of us strive to do better, especially in this market.
J.R. Rouse
J.R. Rouse Real Estate
Pacific Grove, CA
A: Hey, JR! Thanks for the nice words and support.
Get your lender to help you on the 15-minute open house. You should be getting all the leads!
On your question -- I believe in open houses only under the aforementioned 15-minute mode, as part of my “double-side enhancement system” where you hold the listing off the market as long as it legal. Then you get the sign up, send out the just sold cars on the same day you take the listing then Email everyone in your database.
At the open house, the script is simple: “Hello. Are you buyers or sellers today?" Always have a sign-in sheet, and have copies of the “24-Hour Free Phone Value Analysis” and the “Target Property Search” forms. Before they leave the open house, be sure they answer your question by telling you if they are a buyer, seller, or just a little nosey! They need to either take with them or complete on the spot one of the forms. Only spend time with cooperating guests. If they are buyers or sellers, make an appointment then ask them my buyer/seller questions. Turn open houses into a pro-active lead generation system.
1/18/08
Q: I need advice on an expired/NOO who wants to lease his property now. He says that he just wants to keep it for a rental now and wants rental comps. How should I turn this into a sell? I know that a rental would not be best for him since he is in California and tried to sell it before. He thinks the market is bad here.
A: Scott, this is a great question that all my clients are facing.
1. Use your “pain” file to show them that a turn around may not happen in the spring. The market went up for 8 years. Next, it might go down or sideways for five years.
2. There are faster moving assets in terms of appreciation right now -- oil, gold, silver, and even, money market funds.
3. Find out what their motivation for sale is and have them imagine that happening sooner.
4. Show them the numbers. On any rental, you can determine what it should rent for then deduct from that total these expenses:
A. Vacancy factor
B. Maintenance factor
C. Management
D. Taxes
E. Insurance
F. Utilities
G. Legal fees
H. Supplies
I. Travel
J. Long-term replacement of major systems
K. All other costs of having a rental
That figure nationally is about 35% of market rents. Please subtract 35% from the rents and compare that to the principal and interest payment. Take the difference, which will either be positive of negative.
Figure the net equity to the seller after you sell the property and what that money would earn in a long term money market fund (approximate using 5%). Please compare the two returns.
Also, remind them that this does not take into account that this cycle is over and that there could be more price reductions for the months and years.
This will wake up most people from their poor decision.
1/18/08
Q: What are the types of non-MLS inventory that you always talk about which will "knock the socks off” a buyer, generate listing leads, increase my double-end sales, and set myself apart with the REAL services rather than low-perceived value items that the others use?
Tammy
Prudential California
A: Great question, Tammy! Here is where I first look to find a property for my buyer.
1. Show them your listings first, and show them before they hit the market.
2. Try to show office listings before they hit the market.
3. Show them expireds from the last three years that match their needs
4. Show them FSBO inventory
5. Send postcards to the neighborhood they have identified as the target.
6. Advertise your buyer wants in print and on the web
7. Email your buyer needs to the 30 top agents in your area every week
8. Put your buyer needs on the back of brochures in brochure boxes.
9. Send a letter to the people in your database with a matching property
10. Show much more expensive properties and make lower offers in tough markets.
You now have the main component to the "Buyers Assistance Club" that you can advertise to increase buyer leads and impress your sellers!
1/17/08
Q: Hi, Walter! With all the coaches out there shouting “We're the best!” -- how does an agent know which trainers really are? Some claim that success is all about marketing, others claim it's all about prospecting. Isn't it safe to assume there is a balance there somewhere?
David
Shreveport, LA
A: Hi, David! First, I don't know too many coaches who do the coaching themselves. Many often turn the contract over to someone they’ve hired to be a coach. Why would you get coached by a real estate agent who is only a coach when a good real estate agent can make a lot more than a real estate coach? Be careful in choosing your coach.
Next, the general order of skill sets that need to be mastered are listed below, in order of importance:
1. You need to proactively and consistently produce seller leads by time-blocking plus use unusual offers to create interest.
2. Improve your pre listing package, your listing presentation and post-listing activities to obtain a timely signature at the right price while beating the competition.
3. Set up systems in your office to input, manage, and provide better service to larger listing inventories.
4. Set up systems to separate good buyers from low-closing percentage buyers which will be produced by your larger listing inventory.
5. Make sure your systems have checklists and those checklists are put into manual form so they can be easily followed, changed, updated, and someday delegated.
6. Get automatic letter and Email systems in place that will handle repeatable tasks in your business.
7. Add more seller lead generation activities.
8. Get your affiliates involved as participating members of your team.
9. Turn your buyers into seller lead generators and increasing your double-end transactions by showing buyers secret levels of inventory in the forms of the following:
A. Giving them first chance at your listings
B. Giving them first chance at your office's listings
C. Calling three years of exprireds that meet the buyer parameters.
D. Showing them FSBO properties that match their needs.
E. Soliciting short sale and REO inventory for them.
F. Sending direct mail to the area the buyer has pin-pointed as their desire, looking for unlisted properties.
G. Advertising your buyer in print and web advertising more than your inventory.
10. After getting all unsecured debt paid off from the above net-profit activities, make sure that you are fully invested in all tax-leveraged investments like SEPs and SIMPLEs…then have your coach train you on personal real estate investing - the real road to financial independence.
11. Strengthening your web presence to be a main source delivery vehicle of services.
12. Starting to delegate duties to technology, systems, checklists, your clients, your family, your office, the cooperative agents, your affiliates, and finally to an assistant and buyer's agent, as long as they are producing at least 10:1 on cost to gross income.
As you can see, you need a coach who has done all of the above for years and has been successful at not only implementing it himself or herself but also in it to another agent's business.
Finally to specifically answer the dilemma you had about marketing equaling success -- marketing is prospecting. I am only interested in what works in the acquisition of more sellers at a very reasonable cost. Coaches who start first with print advertising, direct mail, and web are coaches who have never made any money in real estate. They may have had large gross incomes, but always check the net! Thanks for asking.
1/14/08
Q: Hi Walter,
I'm a real estate salesperson in New Zealand, a little country near the bottom of the southern hemisphere.
I came across your suggestions about seeking price reductions on Inman News while searching for something to use to convince vendors they need to contribute to advertising costs to sell their property. You obviously know what you are taking about, hence my email to you.
I started in real estate 3 years ago with a small company that uses the commission to absorb advertising costs. Up until now I've been content with the system; however, recently a number of agencies have been calling me and offering better reward systems. Two of them have a similar setup to ReMax.
If I decide to change my employer, I need to know how to convince vendors to pay for advertising, and therein lies my challenge. Up until now, I've never had to do it, and now I want to learn how.
After reading your very useful suggestions on Inman News, I'm hoping you might be able to help. Hopefully, you can direct me to a site that offers helpful suggestions?
I look forward to your reply. Thanks for any help you might be able to give Walter.
Tim
P.S. What is vendor paid advertising known as in the United States?
A: Seller-paid advertising is virtually non-existent in the US. Having a seller happy with your service but you spending less on the marketing is a balancing act that includes:
1. A better listing presentation offering perceived service items.
2. More leads so that it is easier to let the cement heads go.
3. Checklists and multiple delegation sources to make your marketing more efficient
4. Presenting your lead generation as marketing
5. Understanding that the web has replaced print
6. Knowing in your heart that 95% all properties sell because they are priced right, behind a sign, and put in the MLS.
Hope this helps and thanks for the nice words.
1/11/08
Q: I hope all is well in Illinois. I am thinking of retiring and moving on. What is the best way to sell my business? I am not the owner, just an agent. I have not told anyone of this possibility so please keep this info under your hat. The past 7-8 years gross is $450K-650K per year. Thanks.
A: Hey, pal! It's about time. I hope you have the financials worked out. Here are the ways that I have first-hand knowledge of:
1. Go to a top agent who has good systems and skills, and give them your sphere. You will need to send a series of three letters to your sphere explaining how much you love them, how you will miss the business, and how you have found the best in town to replace you. Implement a sliding scale of referral fees for 7-10 years. The problem comes in holding the agent accountable. The problem might arise where you need to address the challenge of the referred agent claiming that they already had this client or that your referral did not produce this client and they would have gotten the client anyway. It works if you get a Schedule C and audit it against copies of closing statements, then compare that to your database which was referred.
2. The straight sale based on a percentage of the money that you can prove has come from referral and repeat business in one year. This will be the smallest amount you receive but the fastest. Problem is that few agents have cash so you will need a note secured with equity. 30% of last year’s provable income from sphere on repeats and referrals is about right. There is no need for monitoring on this!
3. The largest income comes from you staying involved as the CEO. You come in for meetings, strategy planning, and difficult problems. You might even make a showing on a huge listing presentation. This, of course, assumes that you have great systems and great assistants. Your assistants would just keep doing what they have been doing, and you will have to choose one who will take over most of your duties. The challenge is finding someone who can do your duties. Will they trade off a salary plus production bonuses against what they could make as a 100% commission agent? Even if you do a big commission split with them, what would keep them from taking your clients, systems and moving to their own office? Obviously, you have to have the right person for this. You keep your fingers in the business, and it frees you up to develop another stream of income or travel. This system will require the most preparation. Of course, I suggest you use my systems to set up your business so you can hand it to your #2!
Good luck, pal!
1/08/08
Q: My name is Marcus, and I'm 28 years old from Chicago, Illinois. I'm currently working full-time for the USAF and part-time doing what I really love -- real estate.
I came across an article of yours titled "The 15 Minute Open House Tour" and I was blown away. I'm gathering my team to implement this idea into my community, and it is coming together very smoothly. Everyone loves the idea and it is kind of like our little secret. However, our team still needs to put an advertisement in the paper.
Instead of re-creating the wheel, I was curious if you have any templates of what your team advertised in the paper to kick off this event? Any guidance and or help would be greatly appreciated. I look forward to hearing from you.
As we say in the military, have a great Air Force Day!
Marcus Poulos
Hawaii Realty Associates
A: The Poulos Team offers a free real estate tour of the Riverview Historical District. Main Source bank will be at each home to hand out pre-approval certificates for loans, and we will also have a drawing for a $100 gift certificate to the Home Depot. Your chance of winning goes up at every home you visit.
Here are the addresses, in order of showings, and the time each home is open.
123 May Street 1:00 to 1:20
119 First Street 1:30 to 1:50
ect. x 6
THIS IS A FIRST FOR THIS NEIGHBORHOOD AND WILL BE GREAT FUN! It will be fast, fun, and educational! Call Marcus Poulos at XXX-XXX-XXXX or email at XXX@XXXXXXXXXXXXX for more information. If you would like your home to be included in our next tour, please call XXX-XXX-XXXX or visit our website at www.XXXXXX.com.
1/04/08
Q: Hi Walter,
Thanks for the #1 Agent ad wording! We did get it for this year again! Thanks for your help! We are completing a 16-page plus back cover spread in Distinctive Homes. One page will be condo properties. We have 6 units in MGM, 2 units in Soho Lofts, and 2 in the Meridian, for a total of 10 properties. We recently sold one of them. What should I use for wording on the ad itself?
Thanks! Have a great day!
Andrea Wells
The Tom Love Group
A: It takes a certain kind of person to appreciate condo living, and we have the buyer services to reach the buyers who want luxury in the sky! With world-wide promotion, extensive condo buyer databases, move up promotions from lesser buildings, and the best search engine strategy in Vegas, let us demonstrate why you will NEVER hear -- "It's a tough market!" at the Love Group. We do what it takes to meet our client's goals. If you want proof of that statement, call our office and tell us you want to participate in a Vegas purchase or sale. See how many questions we ask to make sure that your exact needs are met!
1/01/08
Q: There are a lot of companies out there that offer real estate coaching. Most of them seem full of it; however, a name that is out there, that seems to be at the top and very credible, is Mike Ferry. I understand you followed him for awhile, worked with him and that you were actually friends. A lot of what you say and teach seems to be very to the point and logical -- similar to MFO. What do you think of his coaching and him as a person and how does your system differ? What are the pros and cons? Thanks, Brandon
A: Happy New Year, Brandon! Thanks for the question. If I am going head to head with Mike, I have better real estate systems than he does, but he has been doing it longer than I have been doing this business. However, it is not Mike against me. You probably would get one of his coaches and then the answer is clear.
I will personally make a larger difference in your net with more time available for your life. My office will follow up with you on Monday with more information. The next step is to schedule a phone appointment with me next week to make sure we are a fit. Then you should check some references which we can provide.
Good due diligence on your part! You have the two best coaching companies available.
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