Articles of Interest

How to Get Listings in Today's Hot Market
By Darryl Davis (Reprinted with Permission)

A top industry trainer offers eleven winning techniques for building inventory.
There's an old saying in our business: the office that controls the inventory controls the marketplace. Many agents, however, steer away from listing presentations because they don't have a clear process to follow. Below, I'll reveal ten specific tips for obtaining listings — all of which are now used with great success by students participating in my year-long training course, The POWER Program ® .

1. Advertise for a Free Phone Appraisal. There are potential sellers in your market who are curious about how much their home is worth, but they won't call an agent because they fear the “hard sell.” With the Free Phone Appraisal approach, you create an ad encouraging homeowners to call for a market analysis over the phone. The ad says there's no obligation and, in fact, there isn't. During the phone call, you would get a general property description and offer a wide range of possible selling prices, dependent upon certain factors. Of course, if the seller would like a more specific estimate of his or her home's value, you would be more than happy to drop by for a visit. (One of my students recently got three listings from running one of these ads!)
2. Offer Free Special Reports ... and Capture ‘Em When They Call. I know of a company that provides special reports of interest to sellers. Titles such as “How to Avoid the Most Common Mistakes When Selling Your Home” or “How to Prepare Your House for Sale” can save the seller thousands of dollars. Advertise for these, and leave an 800 number with an extension. When callers reach your line, they leave their name, address and phone number. But, even if they don't, your 800 number “captures” their identity, allowing you to see the details of who made the call — whether or not they choose to volunteer their information. Make sure your 800 service provides this call capture feature.
3. Pursue Old FSBOs. There are people who were trying to sell their home a few months ago, were unsuccessful and then stopped advertising it in the paper. You can locate them by going to the library, reading through old newspapers and making photocopies. Then call and introduce yourself and your services.
4. Adopt an “Orphan.” These are folks who already bought or sold a home through your company … only the agent who was involved in the sale is no longer around. You can “adopt” these orphans by calling them, introducing yourself as their appointed agent with your company and letting them know that if they need anything, they can call on you. You may find some people who bought four to seven years ago who might be thinking of selling within the next 30 days.
5. Visit Current FSBOs and Expireds. I've always been a proponent of calling FSBOs and Expireds rather than knocking on their door. But some of my students have been more successful by going face to face. The key is, when you knock on their door, tell the owner that you have a new marketing plan that can get them more money than what they were expecting. (Or, pick something else that you feel is unique about what you would do for them and focus on that.)
6. Practice Cause-Related Marketing. Get involved in your community; participate in career days at local schools and tell children what you do for a living. Hand out pencils, magnets or other goodies for kids to take to their parents. (One of my students is only in the business three years and already has a six-figure income mainly due to this approach.) In addition, you could promote good will by volunteering at local hospitals, speaking before Rotary Clubs, sponsoring charity events to raise money for breast cancer awareness, etc. Whatever you decide to do, don't be ashamed to have a photo taken of yourself and send it to the local paper, along with a caption, to publicize your good deeds.
7. Go After Rental Owners. Homeowners who are presently renting their property may want to stop being landlords. Call them, tell them you've noticed that they're trying to rent their home. Let them know that in today's hot market, we have more buyers than sellers. It's an ideal time to “cash in”, as home prices may not remain at this level.
8. Don't Neglect Past Clients. Any six-figure producers I've met derive 75% of their business from referrals. Plain and simple, you need some kind of system to stay in touch with past clients at least four times a year. Get a contact manager such as Top Producer and create a consistent follow-up program. Whether it's a newsletter, postcard, flyer or a simple letter, it's imperative that you keep your name (and face, when possible) visible.
9. Sphere of Influence. While you are making the phone calls, you can send a letter out to your sphere of influence offering a real estate related service that can save them money without obligating them to buy or sell a home. For instance, you can send the following letter:
   
   Dear Hunna Hunna,
   If you have owned your home for more than five years, here is a tip that might save you thousands of dollars. Homes purchased with a loan greater than 80% require Private Mortgage Insurance, PMI. The premium is typically one to two percent of the mortgage at closing and approximately ¼ to ½% per month for the renewals.

   When your equity has increased to 20%, in most cases, you are no longer required to have the PMI but you will have to petition them to have it removed. One way for your equity to increase is to reduce the principal down to 80% of the original purchase price. However, this usually takes 12 or more years unless you are making additional principal contributions.

   The most common way for your equity to increase is for the value to increase. The difference between the unpaid balance and what it is worth is your equity. The mortgage company may require a new appraisal to prove the current worth but before you spend the money, ask them if they'll accept the assessed value.

   Just give me a call at xxx-xxx-xxxx and I'll supply you with the assessed value and sales of comparable homes in your area. If there is anything else I can do for you, please let me know.

   Your real estate professional,
   
   When you get requests for this information, be sure to record the mortgage and values in the person's file in your contact manager. This may be valuable information in the future. Also, remember that you need to be sending letters like this on a regular basis that is considered by most experts to be monthly. Build a reputation for supplying real estate

10. Create a Web Presence. There are a lot of savvy sellers today who make decisions in part based on an agent's technological know-how. With this in mind, show potential sellers that you can promote their property on the web. It's an impressive tool … and it works. (In fact, one of my students generated nearly $20,000 in commissions from their web site over the course of a full year.)

11. Become a Specialist. As in most any field, specialists make more money. Therefore, develop a niche in which you want to concentrate and keep working it. For instance, one possible specialty is waterfront properties. Let's say you enjoy selling these homes and develop a good reputation. Well, you can stay in touch with past customers and future prospects by sending them mailings of interest to them — like details about the water table. If your niche is older Colonials and Tudors, you can forward articles about doing home improvements.

The more of these techniques you put to use, the greater your chance of building your listing inventory and ensuring a steady stream of commissions. So, don't delay. Choose at least one of these tips and get moving — TODAY!

About the Author:
For the past 14 years, Darryl Davis has traveled around the country coaching agents and brokers on how to achieve their next level of success. In 1993, he created The POWER Program , the only training course for agents that meets once a month for a full year. On average, graduating Power Agents double their production over their previous year. In addition, Darryl is the author of the best-selling book How To Become a Power Agent in Real Estate. To learn more about Darryl please visit www.DarrylDavis.com or call 1-800-395-3905.