Typically, relocation is the most time-intensive of the buyer groups. Relocation requires many hours of informing the client about the benefits of the area. You do this for the benefit of the relocating company so that the potential employee has a much better understanding of the community and what it will provide. The relocating company in turn benefits with a happier employee.
Furthermore, a job well done with a relocating employee generates additional referrals in the future. The problem is that relocating employees have options, and often have not made a decision yet about whether or not to move and/or take new employment. As discussed in all of my systems and strategies, I would much rather work with a decided client than an undecided client.
However, since many people do work relocation, it is important that a potential relocation source offers the following benefits to you prior to your commitment of working with them:
1. Exclusivity – you should be their “go to” person regarding buyers and sellers from their company.
2. Presentations – you should have the opportunity to make presentations to their employees in seminar or written form; a social media outreach promising education would work well.
3. Buyer and Seller Contracts – you should receive an equal amount of listing contracts and buyer contracts; a relocating company that just offers you incoming buyers and allows their sellers to pick any real estate agent of their choice is a much less profitable account; push for those listings.
4. Incoming Buyer Services – you should agree on reasonable services offered the incoming buyer; I have had many companies ask for pick-up service at the airports, arrangement of accommodations, babysitting services, and nice lunches; I personally did not want to provide these items; therefore, you need to establish realistic expectations with the relocation company.
Once you have found a company that handles relocations and meets the above criteria, then we have something very important to talk about: the ability of a company’s relocation service to ask for commissions that are not due them. In real estate, this is a very ticklish situation in which you have earned the business and respect of a client only to find out that later a third-party relocation company comes in to ask for a referral fee. In my opinion, this is extortion. Keep in mind that future business could be at stake and proceed cautiously. This is more of an attitude than a system. Please be aware that many times, you have already earned the business before a relocation company comes in and refers you. However, if the relocation company is the procuring cause for the client, then obviously a referral fee would be justified. Negotiate a better commission split and enlist the help of your client if the relocation company wants a commission on a previous relationship.
The services that I believe should be offered to a relocation company are as follows:
1. FREE 24-hour phone value analyses for their clients’ properties.
2. FREE 1031 tax-deferred exchange analysis on any investment properties that the employee might have.
3. FREE referrals to any management companies to take care of a property should it become vacant while the employee is not available to take care of the property.
4. FREE suggestions on how to make a property more valuable before marketing.
5. FREE presentations done for the employees on the company premises.
6. FREE VIP Client Club benefits.
7. FREE Secret Property at Wholesale Price service for the buyers.
8. FREE introduction to the “team” concept.
The system to acquire relocation business will do the following:
1. Obtain the names, addresses, phone numbers, and email addresses of all the relocation directors of the all the major companies within your geographic area.
2. Begin a direct mail campaign that offers the services mentioned above and offers lunch to discuss the employees’ well-being.
3. Implement a follow-up program that requires a phone call every quarter to make certain that the relocation director is taking advantage of all the services that you offer.
Initiating this service will allow you to have an arrangement with all the relocation directors of the companies in your area. Once you get a lead and please your client, more business will come your way.
Here is the following letter that I would use to introduce my services to the relocation director(s) in my area:
Date
Name
Address
City, ST ZIP
Name:
I send this letter as a way of introducing myself and the services that I provide for relocation directors. At your convenience, please take advantage of any of the following services that we might be able to provide your employees. These services can be provided in either a seminar format which I will custom design for your company and/or on a one-on-one basis with your relocating employees.
Please keep this letter as a reference for any real estate services that your employees might need. Also, please remember that for your company, these services are free of charge. Here are the following services that I would like to supply for your company with a hope of earning the privilege to advise on real estate.
1. FREE property tax reassessment forms researched and completed for you. An appointment is necessary.
2. FREE estimates of value on all types of property; some are completed in 24 hours.
3. FREE amortization schedules on your mortgages, customized for any payment or interest amount.
4. FREE investment analysis of any income property showing internal rates of return, financial management rates of return, cost per unit, gross rent multipliers, and capitalization rates.
5. FREE rental forms necessary to conduct a rental property business.
6. FREE advice on buying and selling decisions.
7. FREE referrals to the best contractors, lenders, and other real estate services.
8. FREE evaluation of relatives’ contracts and real estate decisions if made outside the (city) area.
9. FREE comparative market analysis and marketing plans done for all friends, relatives, and business associates of our clients.
10. FREE analysis of refinance viability.
11. FREE advice on homestead declarations.
12. FREE analysis of improvement vs. cost vs. value enhancement of any improvement contemplated on a piece of real estate.
13. FREE 20 ideas on how to increase income and decrease expenses on apartment buildings.
14. FREE referrals to the best insurance agents for policy comparisons.
15. FREE complete lender negotiation facilities that will facilitate short payoffs or interest rate reductions.
16. FREE referrals to top agents in any city of North America should you contemplate a move.
17. FREE analysis of purchase showing payments before income taxes are considered and payments after income taxes are considered.
18. FREE rent vs. buy analysis.
19. FREE buyer qualification estimates for a new purchase.
20. FREE cash flow analysis of a real estate investment.
21. FREE closing cost estimate on new purchase.
22. FREE depreciation analysis of the purchase of any real estate improvement.
23. FREE introduction to vendors who might be useful.
As you can see, the list is extensive, but I recommend even more services. I can custom design services especially for your company, so let us meet for lunch. I will soon be calling to arrange a lunch appointment so that we can further discuss how we can work together.
Sincerely,
Walter Sanford
Sanford Systems
We want to make selling real estate in your town fast, fun, and efficient for the relocation director. I believe that your system should start with an initial direct mail letter with a follow-up phone call. Later, depending upon how the phone call goes and your contact date in your database, it will dictate your future contacts. Please get started on this system at your earliest convenience so that you can start controlling the relocation business in your town.
