6/15/2004 A. Are you a buyer or seller? -------------------------------------------------------------------------------- 6/14/2004 A. You are on the right track. Your goal is an appointment and to help people. However, once I learned that there is negative equity, I would have called the seller to find out if they have a source for paying the amount that is short. Maybe you can mitigate the shortfall with a short sale? But that's another story.... Get the lead, determine motivation, see if the seller is willing to solve the problem and then spend the time on the appointment.
-------------------------------------------------------------------------------- 6/9/2004 A. The easiest way to become a builder's partner is to send them land/lot offerings on a weekly basis. Offer to promote them on your website with their bio, elevations, and other information. Offer to sell their client's resale homes and give them a referral fee. Most importantly, loan them the commission that you earn on any land they buy from you in return for a limited partnership interest in the build project. You are now a partner, making a return (hopefully) on the project, being a partner of the builder and probably listing the property on the way out - think out of the box!! Thanks, Walter S. Sanford
-------------------------------------------------------------------------------- 6/7/2004 A. Hello Diana! There are some articles or Ask Wally sections regarding this very thing on my website. Go there for more information. Yes, FSBO is one of the "legs" of your business plan. It will even be better when they can't sell so fast. A great method is to send them my letters, call them to see if any of the services offered are needed, send them to your website for more of my services for FSBO, visit and then re-call and send more letters. This should be done consistently and a system like that could capture 20% of the available listings. I know it works. I did it many times. Good luck!! Q. What do you mean by "services for FSBO's" exactly? What services would I provide a FSBO? Thanks, Diana A. Get up a sign, put in a combo lock box, give them access to your team, offer lender pro formas, and offer free web advertising. You can also offer them free contracts, advice, pre-listing services like maximizing value analysis and lots more. -------------------------------------------------------------------------------- 6/2/2004 A. Thanks Sam. I have never had the identity theft objection. However, I am sure that with only their name, general location, and their glowing testimonial -- that no one would have enough info to steal their identity. If when we ask and they say "no" then we just plug in another of our happy clients!
-------------------------------------------------------------------------------- 6/2/2004 A. GO TO COLLEGE!
-------------------------------------------------------------------------------- 5/28/2004 Q. Hi Walter, I stumbled upon your site tonight and discovered some of the best advice I’ve heard yet for building and growing business. As a newbie to real estate with a strong tech background, what software products do you feel deliver the most bang for the buck? Currently, I’m using Goldmine as my contact database for prospecting new leads, mainly demographic “data dumps” from tax records and the Haines Cris&Cross directory. However, I find it difficult to use for tracking true client activities (listing, sales, etc.), mainly because the database has grown so large. I’ve looked at Top Producer but am leery of software that is proprietary, difficult to customize and/or which tries to “host” (read: “capture”) your client info online. Thanks for the great ideas in your article session, especially the lender/agent teamwork. Sincerely, Lee Harrison A. I am afraid Top Producer is the way to go. They have the user base and therefore the support. Thanks for the question. Walter S. Sanford
-------------------------------------------------------------------------------- 5/12/2004 Q. I'm getting back into real estate after being out for several years, so I thought I would see what you were up to. Last I knew, you were in Southern California. What are you doing in Kankakee?! Kankakee! I grew up in Kankakee. Surely you didn't end up there by accident, so what gives? Jeffrey Leone A. Hello Jeff! Welcome back. Your timing will be challenging. We are at the top, but you know that agents get out of the business faster than the business goes down. Let me know how I can help your already excellent skills. Regarding living in Kankakee -- I married the world's finest woman. She is tops in real estate here plus I can buy little houses (that rent for $1000.00 a month) for $90,000.00. I am like a kid in a candy store. Thanks, Wally
-------------------------------------------------------------------------------- 5/10/2004 A. Hi John! First of all there are no standard methods of lead generation. All of them can be moved to a higher standard. The one you choose is a demographic database. Your first job is to obtain a database of the group. The database is to include name, home address, home phone, business phone, email address, and business address. Next, you need to make a list of services that would excite them. For instance, medical investor groups that you find and manage property for or offer a free 24 phone value analysis of their current holdings. Maybe put yourself out as a 1031 tax deferred exchange expert? I would not start until you could think up 30 amazing services that do not cost a lot but will excite people. Next introduce yourself, your theme and 5 of your best services by mail and email. Follow-up by phone on a cleaned list (visit donotcallprotection and mention me for a discount). Mail again with more services and so on. Send a
-------------------------------------------------------------------------------- 5/10/2004 A. Jesse, tell them that your reach is longer. You beat the list to sale ratios of your area because of your buyer database, your internet strategy, your search engine strategy, your telemarketing effort, your direct mail effort, your human resources deptartment solicitation effort, and your Realtor to Realtor strategies. Let them know that you will price correctly and you will net them more because of the extra buyers you net from your efforts. You will also cut the costs of the transfer because of the utilization of your team's buying power. More buyers, more offers, higher prices, less problems, faster service - Mr. Johnson would 6 or 7PM be more convenient for me to show these systems to you in person and in writing with a guarantee? Good Luck!! Wally
-------------------------------------------------------------------------------- 5/1/2004 A. Hello Barbara, and thank you. The answer is -- it is not legal but necessary! Like everything, my answer comes with a system. -- Inform the seller that to keep the negotiations moving freely much negotiation is done over the phone with documents sent or faxed for signatures later. Tell them it is sometimes impossible to coordinate the schedules of the property sellers, the buyer's agent, and yourself. Also, ask for written instructions signed from the seller for the buyer's agent to submit all offers to you directly for evaluation prior to presentation. This will allow you to make your own schedule, do any research you need to and to keep the buyer's agent out of the equation which will make the presentation doable over the phone. Leave a standard contract with the seller so that they have something to refer to when the offer does come in. It is hard to read that little printing on a fax sometimes. It also shows how sure you are of yourself at the listing presentation. When the offer comes in tell the buyer's agent to submit to you by dropping off at your office or they could fax or email it to you as well. If there is a problem than you can always meet with the seller but try this first. I was famous for a double standard - I always presented my own offers and tried to present those of other agents to my sellers without them! Sometimes you get away with such a policy and sometimes not. Call the seller, presents and get acceptance, counter or rejection. You have saved hours. Submit results to buyer's agent for their acceptance, rejection, counter. Remember the statute of frauds says that if it's not in writing, it did not happen. So when you get acceptance by all parties - get them in to sign immediately. Did I ever loose a deal between agreement and signature? They would have wiggled out anyway. Good luck, save your seller's time and yours. But understand you have nothing till it is signed. Thanks, Wally
-------------------------------------------------------------------------------- 5/1/2004 A. Yvette, since any kickback scheme can be questioned by the licensing authority and also by the recipients in regards to your sincerity, I believe there may be a better way. Most giving is more successful when nothing is expected in return, but like most things -- that is when it returns the most. Give freely of your time when community wide challenges arise. Stop the tearing down of that antique library. Show up with clothes, money, and a ready to go rental from one of your investors when a family loses a home to a fire. Coach a little league team. Start a real estate scholarship at the local community college. I know you are looking for the business first then you give the spiff -- but it works better the other way both for you and your eventual accomplishments. Thanks, Wally -------------------------------------------------------------------------------- 4/27/2004 A. David, the best method is to contact the attorney's directly with some of my letters and add obbits to your just sold/ just listed campaign. Walter S. Sanford -------------------------------------------------------------------------------- 4/26/2004 Q: Hi, Walter! What is the Goal of Absentee Owner Phone Call- CMA for prospects to be closed later, right? Q: Have you or anyone in your coaching closed for listing in just the phone call? If so, what as the script? 1. a listing appointment 2. LLA -- listing leads "A" class, which are the hard copy files on your desk of anyone that will pop in 60 days or less 3. Buyers that are willing to jump through my buyer hoops and works the buyer program with me 4. LLB -- listings leads "B" class -- people that will list in 61 days or more and should be calendared in your database 5. life is too short to work with these buyers and sellers -- they should be refered out for a 35% referral fees Rocky, these are your goals in order when you are on the phone. When we get more lead generation groups going, you will have more leads and you will have to be tougher with servicing only the most motivated. Q: Can you please give 3 reasons(questions that will move them forward will be great) to get these prospects moving forward witheach of the following scenarios: A: I understand. Is there any reason to call you in the future? May I put you on my information packed ezine/newsletter? It has a lot of local information. Q: 2. Will Never Sell Q: 3. Take me off the list Q: 4. Already have an agent/I am an agent/Friend etc. an agent Q: 5. Sell myself vs Agent to save commission Q: 6. Will rent it vs Sell it -- it is Source of income and do not want to change that.... Q: 7. Children/relative etc. live in it Q: 8. Property is free & clear no need to sell and pay taxes, mortgages, high cost of buying new property Q: 9. Not now maybe later Q: 10.Like your letter keep sending it. Q: 11.Call back later- Unreachable to reach by phone after couple of tries - what message to leave to get a instant call back? Q: 12. Live close to the property and do not need your service. What should be the service for Absentee Owners who live close to subject property? Q: 13. I already have offers. Q: After Service is provided (CMA/Rental analysis/photos/Maintenance recommendation etc.) what should be next step? Thanks, Walter!
-------------------------------------------------------------------------------- 4/22/2004 Questions: 1. Your web site hints that real estate firms have to "restaff for the new age using 'unpaid helpers' ". Can you describe key types of "unpaid helper" technologies that real estate agents should explore and potentially embrace? 2. What type of systems should agents explore for low-cost lead generation? 3. Is it always wise to eliminate paid help in favor of low-cost technologies? When doesn't such a move make sense? In other words, when does it pay to stick with paid help rather than a technology? 4. Any other thoughts you'd care to add on technology that empowers real estate agents? Thanks for your help! Joe Panettieri, contributor, The Residential Specialist A. (see questions and Walter's answers in CAPS) 1. Your web site hints that real estate firms have to "restaff for the new age using 'unpaid helpers' ". Can you describe key types of "unpaid helper" technologies that real estate agents should explore and potentially embrace? KEY AFFILIATE MEMBERS OF A TOP PRODUCER'S TEAM WOULD BE UNPAID HELPERS, BUT THIS MAY BE AN UNFAIR ADJECTIVE! A TOP REAL ESTATE PRODUCER HAS THE POTENTIAL TO PROVIDE A GOOD MARKET SHARE OF SERVICES TO ONE AFFILIATE. IF THAT AFFILIATE WAS GIVEN FAIRLY EXCLUSIVE USE AND WAS NEVER REQUIRED TO MAKE THE DREADED SALES CALL WITH DONUTS, RATE SHEETS, STICKY PADS AND PENS AND WAS FREED UP TO CALL ON OTHER CRS TOP PRODUCERS THEY WOULD BE VERY GRATEFUL. I WENT TO ALL MY AFFILIATES AND OFFERED THIS ARRANGEMENT BUT I WILL USE MY LENDER AS AN EXAMPLE. I COUNTERED ALL OFFERS WITH THE FOLLOWING CLAUSE: BUYER TO BE PRE-APPROVED THROUGH JOHN AT ABC MORTGAGE, AFTER PRE-APPROVAL BUYER IS FREE TO USE ANY LENDER OF THEIR CHOICE. I REFERRED OTHER REAL ESTATE AGENT FRIENDS TO THEM, I FEATURED THEIR BENEFITS ON MY WEB SITE - I HELPED THEM IN MANY WAYS - I WAS A GOOD TEAM MEMBER. IN RETURN I MADE SUGGESTIONS ON HOW THEY COULD HELP ME GET LISTINGS THAT I WAS PRESENTING ON BY USING THIRD PARTY ENDORSEMENT LETTERS TO THE SELLERS. I HAD THEM HANDLE MY FSBO RESEARCH WITH LETTERS AND PHONE CALLS THAT HELPED THE FSBO'S, GOT THEM LOANS AND IDENTIFIED TENDERIZED FSBO'S THAT MAY WELCOME THE HELP OF THE SANFORD TEAM. I HAD THEM SOLICIT DIVORCING HOMEOWNERS WITH REFINANCES THAT TOOK THE VACATING SPOUSES NAME OFF THE UNDERLYING LOAN DOCUMENTS. WHEN THEY COULD NOT GET A NEW LOAN BECAUSE OF EQUITY OR CREDIT, I WAS MENTIONED AS A POSSIBLE SOLUTION AS THE SALES COUNSELOR. WE HELPED EACH OTHER GREATLY HELPING PUT OFF THE HIRING OF AN ASSISTANT. 2. What type of systems should agents explore for low-cost lead generation? 1. 1800 INTERACTIVE TELEPHONE LEADS 2. A STICKY WEB SITE THAT HAS SUCH GOOD INFORMATION A CLIENT WILL LEAVE INFORMATION ABOUT THEMSELVES 3. AUTOMATIC EMAIL RESPONSES 4. THIRD PARTY WEB SITE LEAD GENERATORS REMEMBER, ALL THE ABOVE EXCEPT NUMBER TWO CREATE LARGE NUMBERS OF UNDER-QUALIFIED LEADS THE TOP PEOPLE IN THE COUNTRY STILL LOOK FOR SELLERS IN THE TRADITIONAL DEMOGRAPHICS LIKE EXPIREDS, FSBO, ABSENTEE OWNERS AND DATA BASE AMONG MANY OTHERS AND APPROACH WITH A MULTI MEDIA AND FACETED APPROACH THAT MAY INCLUDE MAIL, EMAIL, ADVERTISING, PHONE, DOOR KNOCKING AND WEB DESTINATIONS 3. Is it always wise to eliminate paid help in favor of low-cost technologies? When doesn't such a move make sense? In other words, when does it pay to stick with paid help rather than a technology? LOW COST TECH TO REPLACE PERSONAL CLIENT INTERACTION NEVER WORKS EXCEPT AS A SUPPLEMENT TO AN ALREADY STELLER PERSONAL CONTACT SYSTEM AND HOT DEMOGRAPHIC LEAD GENERATION REQUIRES A HUMAN. WE ARE NET SELLING WIDGETS AND TECH SYSTEMS ARE NOT YET FLEXIBLE ENOUGH TO REPLACE A GREAT RAINMAKER AND A WONDERFUL EXECUTIVE ASSISTANT. 4. Any other thoughts you'd care to add on technology that empowers real estate agents? TECHNOLOGY MAKES THE OLD PROVEN SYSTEMS FASTER AND CHEAPER AND THEREFORE THE SMART USERS CAN DO MORE OF THE SMART STUFF! -------------------------------------------------------------------------------- 4/20/2004 A. Barb, The ones that use web sites correctly, love them. The ones that got them for the so called "wow" value are correctly not putting in the effort because there is little return. Get a search engine strategy, be close or on top when your geographical location is searched, have amazing content and free services that people are willing to fill out forms to get and there you have it - a cbo (cyber branch office)! Walter -------------------------------------------------------------------------------- 4/20/2004 A. Hello Tari, Sure, it is possible but not fun. But neither is four kids on $10.00 + an hour. Why don't you call John Pinto and learn from the best and work for him. Also call Danielle Kennedy, a trainer. She was a success as a single mom with four kids. Also call my old partner, agent, Monica Reynolds at the Mike Ferry Organization, she was a top agent single mom with three kids. They should spend some time with you.. But if it was up to me, I would go for it being an agent even if I had to bring all four kids on a listing presentation!!. Two hours every evening after work where it is not a conflict should be enough to call all the expireds and FSBO you find for the day, they will be home and after a few listings you will have the momentum to quit. Walter S. Sanford -------------------------------------------------------------------------------- 4/11/2004 A. Russ, the best method is to take excerpts from past testimonial letters and send them to the client with a self addressed, stamped envelope and then from you priming the pump, you usually get back something pretty good.
-------------------------------------------------------------------------------- 3/28/2004 1. lead generation If this is incorrect, I would like to receive your take on the processes of the business. Ray A. Ray you are pretty close. Here is what I think the evolution of this business looks like: 1. Determination of the demographics or systems to go after and obtain seller leads based on budget and time. These will range from a letter, visit, phone, web campaign to FSBOs to a search engine strategy pointing to an i for i site. 2. Based upon your available time, power to delegate or propensity to hire, time blocking regular times to research, implement and follow-up on above. 3. With the goal of obtaining a listing appointment your skill in counseling the client, preparing the pre-list package, making a listing presentation, overcoming commission objections and receiving terms upon the property that make it saleable and profitable. 4. Your ability to leverage your now past client for more business and leads integrated with the other lead generation systems in number 1 that you are adding to all the time. Hope this helps!! Walter -------------------------------------------------------------------------------- 3/19/2004 A. Karen, don't you just hate seminars. They give you all those ideas but never tell you how to do it. Here is the obtaining testimonial system: 1. On your listing checklist and closing checklist have a line that reminds you to ask for testimonials: A. "Gee Mr. Johnson, we are sure getting a lot of play from my advertising....when this is all done will you write me a testimonial letter on your stationery?" B. "Heck, replacing wonderful clients like you is the hardest thing that I have to do. Would you please write me or email me some thought from your heart as to how you liked working with me?" 2. When you have done the above, you can now remind them about the letter at closing. "Here, let me get some paper for you and let's do it now while we are waiting." 3. Since, with my systems, you will be sending out a critique after close with the VIP client club letter, you can ask again. 4. If you still do not have it, send out the TESTIMONIAL LETTER PRIMER. What it does is give them quotes from other happy clients so that they can get ideas to get their creative juices flowing. Send a self-addressed, stamped envelope with this one. 5. Only after you have done all the above, offer to write it for them, if they have not asked already! Then repeat the highlights of the transaction through your client's eyes to the best of your ability. Walter S. Sanford
-------------------------------------------------------------------------------- 3/14/2004 A. Con's: You can work for free for years for someone before you ever get paid. Net income beyond your wildest dreams -------------------------------------------------------------------------------- 3/10/2004 I'm working on an article for Texas Realtor that will cover "negotiating strategies for Realtors" and I'm looking for a few experts/consultants/coaches who might be available next week to do a short phone interview based on 4-5 interview questions that I can send over ahead of time. Can you let me know if you might like to participate? The article I'm working on will be published in an upcoming issue of Texas REALTOR magazine, and will give readers hands-on strategies/advice that they can use when negotiating deals or helping clients do the same. We're looking to cover solid, fair negotiating strategies and tactics that agents and brokers can put to work in their own day-to-day routines. Below, please find a few interview questions that I'd like to discuss with you sometime this week or early next week (my deadline is 9/26). Best times for me are between 10:30 and 4pm Eastern, so just let me know what works for you. Interview Questions: Your name:________________________________________ Title: _______________________________________________ Company name: _____________________________________ Location: ___________________________________________ (for agents): years in real estate, sales #s for 2002: (for experts): a sentence describing your firm and what it does. For starters, just how important are negotiations to the agent's overall duties when working with homebuyers and sellers? How important is this particular element of the process? How does one go about preparing a client on what to expect during the negotiating process? What can an agent do to ensure that the process goes smoothly? Please outline 2-3 of the most important negotiating strategies that you feel an agent/broker should be using right now, tell what the strategy is, how one goes about using it and what results/benefits an agent can expect from using the strategy: On another note, what are a few top strategies that an agent/broker can use when negotiating directly with a client, say over commission rates? What strategies work best during these situations and why?
Thanks, Bridget McCrea A. Here is a start: I was in real estate as a broker, working as an agent from 1978 to 2001. My best year was 78 million in personal sales in one year. I made over 1.6 million in commission for 11 years straight. I now have moved to Kankakee, IL from Long Beach Ca and have two new daughters (first time daddy) and speak about 100 times a year all over the world but mainly in the US and Canada. I teach high production systems to top producers and soon to be top producers. I have authored 13 books on high production real estate that I self publish. Here are some thought on your questions: 1. This is a huge concern. Are Realtors® responsible to make the transaction happen or make it happen at the best price. The answer is to negotiate with the clients motivation in mind. Price and other contract negotiations can alienate the seller or the seller's agent and force them to look at other buyers, when if explained to the buyer they might not care about a 10,000 savings over 30 years which is $60.00 per month - they might want the house as their top priority. It is the Realtors@ responsibility to determine what the hierarchy of motivations the buyer and seller has because sometimes they are mutually exclusive. Work on the client's needs, not the agent's. 2. To make the process smoother the agent must counsel the client. Here are the questions that I would ask a seller: A. " Mr. Johnson, if price becomes a stumbling block and they refuse your counter - offer tell me how that affects your future. I want you to realize that if they refuse the counter offer you have in essence bought your property back for the amount of the counter. Are you sure that is your goal?" All potential stumbling blocks must be covered to understand the seller's resolve before you risk losing the transaction to tough negotiations. B. For a buyer I would recommend that they understand the comparables and offer the best price possible that will accomplish the buyers goals and the seller's goals if the buyer really wants the property as their primary goal. If price for a buyer is the primary goal they prepare the buyer for many offers on many properties. 3. The most important negotiating strategies for an agent currently are: A. Obtaining the listing without giving away the store. Walking out with a well priced listing, with full listing time period and a full commission without promising expensive marketing is the hallmark of a professional. To accomplish this the agent must know about the seller's hopes, wants, dreams and aspirations by an extensive pre-counseling session prior to the appointment. Needs, motivations, concerns must all be realized and a plan for solving them must be planned before the agent should go on the appointment. B. The second most important negotiating tech. is the ability to negotiate a relationship with a buyer. I do this by making them clear hurdles before I give them my time, my life and my family's time. The must complete a nice phone interview consisting of 38 questions. They must then be pre-approved by my lender. They must then meet me at my office. They must then listen to my presentation. They must then sign a loyalty agreement (Buyer Brokerage Agreement). These four hoops must be jumped through (negotiated) before I will work on a contingency basis. C. The third most important negotiation for an agent is one for their time. Here agents are negotiation with life. To be successful they must determine their core values i.e.: time with family, health, faith, friends, fun etc. and then determine their goals on a one year, three year, five year and ten year basis, - every year. Then they must determine a life plan. I do this by taking a week-at-a-glance calendar and time blocking my perfect week. What is left is my time for lead generation and other functions of my real estate business based upon my production goals. There is a famous quote: "Life only gave me what I asked of it." 4. There is only one way to negotiate commissions in my opinion: A. Isolate the objection: "So, Mr. Johnson am I hearing you correctly that if I can increase your net proceeds by one percent then you can go ahead with me tonight on the marketing of your home at my regular fee?" B. If there is agreement and that is the last objection then all I have to do is show him how to increase his net proceeds by 1% to keep all of my commission. I can do that by: Bridget, I hope you like this and can use it. I am of course still available to speak with you. Thanks, Hello Walter: I'm working on an article for Florida REALTOR (the piece is national in scope) and was wondering if you might like to participate via a short email or phone interview. I've pasted the details and interview questions below -- let me know what you think. Thanks, Bridget McCrea 727-733-4446
The article I'm working on will be published in an upcoming issue of Florida REALTOR Magazine, and will focus on specific strategies that REALTORS can use to stand out in a competitive market. Below, please find the interview questions that I'd either like to discuss with you, or that you can answer via email. If you choose the latter option, please be as detailed as possible with your answers. The magazine would also like a headshot/photo of all interviewees, so please let me know if you have one available. I'll be interviewing this week and next for a March 17th deadline. Best interview times for me are between 10:30am and 4pm Eastern, so just let me know what works for you. Regards, Bridget McCrea 727-733-4446 Interview Questions: Your name: Walter S. Sanford Title: Owner Company name: Sanford Systems and Strategies City, State: 559 S. Washington Ave., Kankakee, IL 60901 For agents: #years in real estate and 2003 sales volume For experts: description of your firm: ANSWER: Walter Sanford was one of the top agents in North America in the 80's and 90's. Walter Started speaking on his strategies, checklists and systems that enabled him to do 70 million dollars a year in sales consistently for 20 years. He has written 11 books with software on how to implement those systems. Please detail what you feel are the top 2 strategies that you use (or, that agents should consider using) to stand on in a marketplace where NAR expects a 5% drop in home sales in 2004 combined with a 2003 membership increase of 27 percent. Please include the following: a) Details on the strategy itself: what it is, how it works, etc. b) When you started using it and why – where did the idea come from?THE IDEAS THAT I WROTE ABOUT CAME ABOUT BY USING THEM MYSELF IN MY 30 YEAR REAL ESTATE BROKERAGE CAREER c) How much time/money you've invested in this strategy (or, how much a Realtor can expect to invest): THE DATA BASE STRATEGY CAN START TODAY WITH NO INVESTMENT EXCEPT THE 1/2 OF TIME. THE FSBO STRATEGY WILL REQUIRE WEEKLY RESEARCH, LETTERS AND EMAILS SENT LETTING THEM KNOW WHY YOUR STRATEGIES WILL ALLOW THEM TO SELL THEIR HOME FOR MORE MONEY IN LESS TIME AND WITH LESS COMPLICATIONS. THE ANTI-COMMISSION CUTTING STRATEGY CAN BE IMPLEMENTED IMMEDIATELY AT LITTLE OR NO COST. d) The results that have come from using the strategy (what percentage increase in sales? What percentage increase in inquiry calls? Etc.), or the attainable results that a Realtor can expect: THE RESULTS ENJOYED BY CALLING YOUR DATA BASE IS ONE NEW LEAD FOR EVERY 13 CONNECTED PHONE CALLS ASKING FOR REPEAT BUSINESS, REFERRAL BUSINESS, NEW INVESTMENT BUSINESS. THE RESULTS ENJOYED BY COMMENCING WITH A FSBO PROGRAM THAT INCLUDES EXHAUSTIVE RESEARCH OF THE FSBO'S NAMES, ADDRESSES AND PHONE NUMBERS FROM ALL POSSIBLE SOURCES, AND THEN CALLING AND EMAILING HELPFUL SERVICES WEEKLY WITH A GOOD FOLLOW-UP PLAN CAN RESULT IN A 10% MARKET SHARE OF THE AVAILABLE FSBO MARKET. BEING TOUGHER ON THE COMMISSION ISSUE CAN HAVE THE GREATEST IMPACT ON AN AGENT'S BOTTOM LINE. ANSWER: Based on 2004 maintaining bargain interest rates, more new agents starting in the market and a small drop in units being sold means that the most profitable segment of the market will continue to be the intelligent acquisition of listings and inventory. The fastest and most profitable models for the acquisition of listings in the balance of 2004 will be A. Database solicitation B. FSBO A. Database solicitation. Your client's are the least expensive means of generating new business. Properly handled they are outside the confines of the "DO NOT CALL RULES". They are getting tired of impersonal technology and want to hear from the head honcho with services that will change their lives. The main rainmaker (don't delegate this one) has to get back on the phone everyday. I want you to call them twice a year and try two times. That means take your data base and divide it by 250 working days and multiply by two. If you have 700 in your database then the numbers would be 700/250=2.8X2=5.6 calls a day during the work week. It will be more that that because if we get a no answer, left message, or have to research a new number, you have to make a second and sometimes third call. I would say a time blocked section of a half hour a day would handle the above situation. Calling is easy, just tell them about all the things you and your team is doing. Investment property research, refinance viability, Free equity check or free tax advice from your accountant could be just a few hooks to cause them to return your call or discuss their future plans. B. FSBO solicitation. With slower sales and unrealistically priced FSBO sellers, that segment will find that they need a professional when showings drop off. FSBO are "do not call" compliant for my company because we also buy real estate. If purchasing the property does not meet our criteria then we will offer out exclusive marketing plan. A systemized approach to FSBO research, multi-media contacts and follow-up is required to capture this niche. SECOND ANSWER: With more agents chasing fewer transactions we can only see the trend of commission cutting to continue. Shaving a percentage point by going from my commission rate of 6% to 5% and taking the hit on the listing side therefore going from 3% to 2% cuts my net profit in half assuming a 33% overhead. Therefore systems must be put in place to keep the profit intact. There are hundreds of scripts floating around about how to say no to a seller that wants a reduction, but the most impactful and client pleasing method of commission negotiation is to show how you and your team and systems actually brings more money to the table making commission reductions moot. These special values that you can bring to the table are: 1. Beating the Board's average list to sale ration by your superior negotiating ability 2. Beating the average days on the market therefore cutting carrying costs 3. Supplying a team for the same cost of a single agent 4. Demonstrating contract knowledge so that disputes and litigation are minimized 5. Systems and checklists in place to provide continuity and completeness of service 6. A marketing plan, internet strategy and search engine regimine that pulls more buyers through the home and therefore a greater chance of a higher offering price. 7. Service standards like our "three hour return phone call guarantee" that saves the client time to tend to their own job. And many more! I hope this is enough information to make your article great, thank you for the opportunity!! Regards,
-------------------------------------------------------------------------------- 3/7/2004 A. Good morning Marti, You did not give me the right answer in your choices. If I am in your sphere and I am not getting something neat from you every month my spam software will hunt you down and eliminate you. The neat stuff are item in the area and the Nation that effect the value of my investment. The sales and how long they take. The ways to save money on insurance, property taxes, income taxes, or something that I buy personally. Your personal experience on a Culligan water softener, a new deck, a Jacuzzi, a kitchen re-do or an ion air freshener. An email service that tells me what any address sold for and when. A brand new business that you have obtained on line coupons for. A fun local city event that you will be at and have stuff for the kids - a summer concert were you have Frisbees with your name on them if they call you. What day will your boat tour of waterfront properties be on. I am already looking forward to your ezine with interesting subject lines with stuff I am interested in. Walter -------------------------------------------------------------------------------- 3/3/2004 First of all, I would like to thank you for the quick reply to my email, my question was answered very straightforward and clear. I have been reading the Q & A section, and have experienced that it's a very resourceful section of your website. Reading it, a few questions popped into my mind. Being a RE/MAX associate, I daily perform in a team of other sales associates. I understand you are not the greatest supporter of forming teams. Being someone that reads various literature 2-3 hours a day in the real estate field, I have already experienced that people ask me questions about various areas in the field. Should I continue to invest in the team, lose some time and answer all questions. Or should I be a bit closed, not lose time and keep the knowledge to myself? What number of hours do you think a starter should be working in the real estate field. I have heard estimates of 40 in the beginning and 20 later on, and I have heard stories about putting in 100-80 hours. What is your personal experience? What do you think about relying heavily upon your center of influence. I have chosen one particular area, and have put in all I've got to become a market leader in that area. Should I expand my thinking, or rely on that? If I'm interested in purchasing your materials, what materials would you recommend? I'm a relative newbie, and I'm living in Europe, so laws about real estate are different here, might want to keep that in mind when dispensing advice. The people's attitude might differ too, is that a problem. Is it possible to purchase material, and if so, what are the shipping costs? This has become quite a long question, but I hope you can help me out with this. Thanks in advance. All the best, Arno Wingen A. Hello Arno, selling in Europe with the newer commission structure is transforming your market to a closer model of our all the time. Your question about teams is unclear. I do not like partners - people that share in the production of income, expensed and profits. It is rare that a situation like that works - there will be resentment by one sooner or later. I love teams, people you hire or people that help you, like lenders in the expectation that you will be loyal to them. Unless you are the manager, owner, broker do not hang out with real estate agents. Be nice, but remember I get paid for training - you do not. I spent 30-40 hours a week in the business for 30 years and was the top agent in North America for many of those years. It takes discipline and good client pre-qualification, good systems and checklists to do that. I believe in controlling the inventory and if center of influence means data base, yes that is one of the top ten ways to generate listings. The starting place for my materials and the ones that are European safe are 1,2,3,4 at www.waltersanford.com. When you buy four, we will pay shipping. Thanks for your question, Walter -------------------------------------------------------------------------------- A. How about this: Happy St. Patrick's Day! St. Patrick's calling was to convert the pagans of Ireland to Christianity. He used the shamrock to represent the Holy Trinity - how three separate distinct entities can be one. What does this have to do with Vegas real estate????? Nothing. However, we have pagans in Vegas and its a good time to write you all a little note wishing you good luck in the balance of this years hot real estate market. Many of my clients believe me to be a real hero. Prices are way up for my sellers, but I have found some secret stuff for my buyers. My investors have made a ton of equity and my clients still appreciate my little services that they get by being a VIP client. Call my staff or I today and request some of the items that have made me a hero: These are just seven of the favorites, what do you need from the number one agent in Vegas? If you see me out and about on St. Patty's day and you can't use any of the free services above, at least consider this a drink coupon. Sincerely, -------------------------------------------------------------------------------- 2/20/2004 A. You need to get all of the REO depts. of all the banks in the nation that own loans in Orange County. I did it about 10 years ago but the list is now old. Then you need a newsletter, email, phone campaign to show them all the services that you offer. All the letters that I wrote that won the business in Long Beach back in the dark days of 93-95 are in my Letter/Email book. I think you are a genius in getting a jump on the reo and short sale opportunities that will abound when the rates go up. Being first in any lead generation trend insures your success if you use my systems. Thanks, Walter -------------------------------------------------------------------------------- 2/13/2004 A. Katheryn, this is one of those tough decisions. I will make it better for the future, so that you never have to have this happen again. On your next listing presentation I want you to offer KATHERYN'S EASY OUT LISTING AGREEMENT which offers for any reason and instantaneously you will cancel their listing should they need to. There is a $1000.00 cancellation charge that will help defray your overhead and it is fully refundable should they ever list with you again during your career and the property sells. Also, a full commission is due should the property be transferred to anyone except a family member for 24 months after this agreement. All terms are negotiable. It is a great listing tool and cures the problem upfront. Now what to do now. I don't like being a weenie head or being taken advantage of. If they want out for nice and good reasons, let them on the provision that they will list with you again. If they do not want to list with you again tell them you will accept $1500.00 to pay for your time and overhead and they can pay you over time or out of the proceeds of a sale. You can take a lien on the property. If they do not agree to that, then you have to decide if the fight is really worth it. You can expend so much negative energy, that if re-aligned to a positive pursuit of listings, you could probably get five. Thanks for asking. Walter S. Sanford
-------------------------------------------------------------------------------- 2/13/2004 A. Hello Katheryn: I do not like partnerships, have not seen too many work. There are exceptions. I think I would ask for 20% of every one of her transactions that you help with. She will want to learn quickly at that rate and you get paid for taking valuable time away from your own lead generation. -------------------------------------------------------------------------------- 2/13/2004 A. Hello Katheryn: I do not like partnerships, have not seen too many work. There are exceptions. I think I would ask for 20% of every one of her transactions that you help with. She will want to learn quickly at that rate and you get paid for taking valuable time away from your own lead generation. Walter S. Sanford -------------------------------------------------------------------------------- A. Arno, if you do not have exact objections that the clients have given you, it is in your head. You cure that by being prepared, having self confidence and always doing the right thing for your client. That includes always telling the truth, even if you do not get the deal because of it. There is nothing you can do that is better than having truth on your side. Do not take the non motivated or over priced or wienie head client. Spend more time generating leads. You will be proud of yourself and always have another client - where that one came from. If you have a specific objection, I will tell you the script to use next time. Walter S. Sanford -------------------------------------------------------------------------------- 1/20/2004 A. Like all of my material, it has to knock their socks off for them to add you to their rolodex, favorite's file, palm pilot and assistant's database. It must offer amazing services such as one of the letters in my LETTER BOOK. Free expert witness consultation for the first hour -------------------------------------------------------------------------------- 1/6/2004 My SOI knows I'm in Real Estate, but for many of them the alarm isn't going off to tell people about me when they're talking about Real Estate. Currently I call/mail twice a year, plus I have a monthly newsletter I put out via email that's fairly well received. So far I have about 1/4 of my SOI on the newsletter, and am working to get them all signed up. I do have a few enthusiastic "fans" who refer to me consistently. I need to know how to make it more of a priority to mention me in conversations about Real Estate. I'm calling my SOI right now but don't know how to pop the question. What's the best way to ask? I'm especially stumped on how to ask individuals whom I've already asked before and have received positive responses from but have no referrals from. Thanks for your help --Peter PS Using your approaches to back-office operations, prospecting and servicing clients I've almost tripled my business from year one to year #2. This in spite of a fear of prospecting and an introverted, overly analytical nature. I will probably double my business again this year. Your "Ask Wally" column is the best Sales training I've found, and I've done the research - in the bookstore, in the Library and on the Web. Thanks! A. Peter, you have hit on the problem that I have with all the Referral only trainers. It is just a small part of the total picture. Here is what I would do for a client. Start the asking process far before the transaction closes. Offer them 30 reasons to call you, things they could actually loan to their friends (their SOI). Call them more often. Get off email, no one reads it anymore - I get over 20 newsletters and just cut it down to 2. Start direct mail with unbelievable offers that create incoming phone calls. Stop depending on your database - it is a great source but their are other databases out there just as good. You are on the verge of limited returns on investment in your database - exploit the other databases that I like. Walter S. Sanford
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