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Doug Pretorius (ON)

Do unmotivated sellers ever become motivated?

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It sure doesn't seem like it! I've called and mailed sellers repeatedly who have had their homes on the market for 6-12 months (when average DOM is about 45 days) and have reduced their asking prices by as much as 25%, and they still have zero interest in doing a SLO or CA. I've gone as far as offering them their original asking price just to see if I can get a rise out of them--still nothing.

 

It seems to me that people are either interested or they're not, and all repeated calls does is irritate them. Calling people back who were on the fence might be worthwhile, but calling back definite "NOs" is a total waste of time.

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I am assuming that all these houses are listed. That is why they are saying no most of the time. Are you working expireds at all?

 

I am probably not the norm on the board but I have not called a seller in probably two years and I have been in the hottest market in the country.

 

I do not knock down 10 deals a week. But I do get at least 1-2 and on good months I will do 4 per month.

 

Here is my marketing plan in a nut shell.

 

Post cards (Geographic)

Personalized Post cards (Demographic)

Hand written letter (Geographic)

News paper inserts or AD (Demographic)

Post cards & Voice Blast (follow up)

 

This gets me 100 calls to the 800# of them maybe 15-30 will speak to operator to give information. Of those I will place 1-2 under contract and the rest will go into my follow up system.

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Calling people back who were on the fence might be worthwhile, but calling back definite "NOs" is a total waste of time.
Doug, I agree that a definite "No!" is not worth the time and aggravation of calling back. I figure the market is big enough, and there are enough sellers at any given time, that there is no need to beg for business.

 

Here is my marketing plan in a nut shell.

 

Post cards (Geographic)

Personalized Post cards (Demographic)

Hand written letter (Geographic)

News paper inserts or AD (Demographic)

Post cards & Voice Blast (follow up)

Rex, interesting how you have pretty much streamlined and simplified your approach to getting noticed. And I see you're not a bandit sign advocate, either.

I wonder if you'd care to detail your approach for our members? For example, you send post cards out, geographically and demographically. Do you have a company do this for you? The Post Office? How many? What do they say? Etc. . .

I just think this is such a critical area for succeeding in this business, any insights you care to share with our members would be most helpful and appreciated. Many thanks for any information you can pass along.

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I am assuming that all these houses are listed. That is why they are saying no most of the time. Are you working expireds at all?

They're a mixed bag, some started out as FSBOs and then listed. Others listed and expired then tried FSBO. Still others have listed and expired 3 or 4 times. Quite a few did FSBO for several months then listed while continuing to try FSBO.

 

But they are all FSBOs, listed or expired. No geographic mailings.

 

Here is my marketing plan in a nut shell.

 

Post cards (Geographic)

Personalized Post cards (Demographic)

Hand written letter (Geographic)

News paper inserts or AD (Demographic)

Post cards & Voice Blast (follow up)

 

This gets me 100 calls to the 800# of them maybe 15-30 will speak to operator to give information. Of those I will place 1-2 under contract and the rest will go into my follow up system.

In addition to what MC asked. I'm curious about the volume of postcards and letters you send out on a monthly basis to bring in those 100 calls?

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MC

All post cards are handled thru USPS.com My approach for Geographic is to hit the area 4 times per year with post cards and once per month with News Paper Inserts & ADS. I alternate these. One month ads the other month Inserts.

 

Demographic is done over a period of decision making period. Example Expired listings I hit them 6 times over a 90 day period. FSBO 6 times over 90 days. Divorce 6 times over 180 days.

 

Our follow up list is once per month for post cards and if I get slow I will crank out the voice blast.

 

Its a system that once you set up and keep it going its easy to maintain. You slack off then the work piles up.

 

Doug

 

Volume changes each mailing. I get more calls off Geographic but they are not as qualified as others. When I do personalized post cards I get alot of calls but they are not a qualified either. The 100 calls are not calls that I have not tracked. Its the only ones that spoke to the operator that I track.

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I am probably not the norm on the board but I have not called a seller in probably two years...

 

Probably the best advice I ever got was to stop making cold calls. Getting people to call you makes SO much more sense. Most people start out selling their house thinking (or at least hoping) that they will be inundated with calls and that their house will sell quickly. I prefer talking to them after that delusion has worn off.

 

When they stop getting phone calls is when they start making phone calls. My job as to try to be the first (and only) call they make.

 

-Kay

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In most cases, people just say no, because it is easier. Even if they need your help they still say no if you approach them directly. But if they see your name in a newspaper or get your info in any other indirect way, they begin to perceive you differently. That is why multiple approaches, like ads, fliers, letters, etc.. work better, most of the time. (But it definitely cost money, so you have to make deals)

 

Also, if you noticed that the price was lowered by 25% and the property is still sitting on the market that would mean the property is seriously overpriced. Right? If it is priced right you can partner up with an investor and buy the place.

 

What really gets to me is when people plan to list a property for $150K and they approach us to do a private sale for $145K firm. They want more than they would get after commissions and waiting for 3 month. But they do not care; they would rather list the property and take their chances. Isn’t it something?

 

Thanks.

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What really gets to me is when people plan to list a property for $150K and they approach us to do a private sale for $145K firm. They want more than they would get after commissions and waiting for 3 month. But they do not care; they would rather list the property and take their chances. Isn’t it something?

 

Thanks.

Hehe. . .see that all the time. Patience is the key here, my friend. Let someone else overpay if they insist. Time is a great motivator. If, after three months on the market, the property hasn't sold, your offer won't so quickly be dismissed.

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MC

All post cards are handled thru USPS.com My approach for Geographic is to hit the area 4 times per year with post cards and once per month with News Paper Inserts & ADS. I alternate these. One month ads the other month Inserts.

 

Demographic is done over a period of decision making period. Example Expired listings I hit them 6 times over a 90 day period. FSBO 6 times over 90 days. Divorce 6 times over 180 days.

 

Our follow up list is once per month for post cards and if I get slow I will crank out the voice blast.

 

Its a system that once you set up and keep it going its easy to maintain. You slack off then the work piles up.

 

Doug

 

Volume changes each mailing. I get more calls off Geographic but they are not as qualified as others. When I do personalized post cards I get alot of calls but they are not a qualified either. The 100 calls are not calls that I have not tracked. Its the only ones that spoke to the operator that I track.

 

 

When do you find time for building? You are setting the bar high for us part-times. Are you still doing the signs on the weekends too?

 

Craig

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In most cases, people just say no, because it is easier. Even if they need your help they still say no if you approach them directly. But if they see your name in a newspaper or get your info in any other indirect way, they begin to perceive you differently. That is why multiple approaches, like ads, fliers, letters, etc.. work better, most of the time. (But it definitely cost money, so you have to make deals)

I haven't found that to be the case at all. First, it's much easier for people to say no to an ad--by not calling--than it is to say no to a live person. Second, those who do call are actaully LESS likely to agree to a deal. I don't know why that is, maybe sellers believe that you're insane if you advertise to buy houses when there are thousands available on the MLS.

 

Also, if you noticed that the price was lowered by 25% and the property is still sitting on the market that would mean the property is seriously overpriced. Right? If it is priced right you can partner up with an investor and buy the place.

Frankly I don't think 25% is enough overpricing to deter buyers. There are far more important factors preventing a sale.

 

What really gets to me is when people plan to list a property for $150K and they approach us to do a private sale for $145K firm. They want more than they would get after commissions and waiting for 3 month. But they do not care; they would rather list the property and take their chances. Isn’t it something?

 

Thanks.

:) How about when an FSBO tells you they're firm at $150k, months pass and they list for $170k, more months pass and they end up selling for $130k minus commissions :P

 

Nah, I've given up trying to understand what goes through seller's minds, I've also given up trying to educate them on the benefits of creative deals. I'm now only interested in one kind of seller, the kind that shuts up and signs.

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Nah, I've given up trying to understand what goes through seller's minds, I've also given up trying to educate them on the benefits of creative deals. I'm now only interested in one kind of seller, the kind that shuts up and signs.

 

 

You didn't happen to educate them too much did ya there boss?

I mean, if you give 'em too much ammo, what's the need to deal with you?

 

Hope ya have fun finding that seller you're looking for.

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You didn't happen to educate them too much did ya there boss?

I mean, if you give 'em too much ammo, what's the need to deal with you?

Exactly right! If they ask more than 1 or 2 questions it's the same as if they said no right from the start. No, I don't bother answering their questions at all anymore. If they ask anything other than: "When can you come by to sign?" I refer them to my site.

 

You tell me if my site teaches them how to do it without me? (HomesEveryday.com)

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You tell me if my site teaches them how to do it without me? (HomesEveryday.com)

 

Everything looks good, Doug.

However, when I scroll on down to the How Does It Work part I see something that I (personally) would save for when I had my appointment, in person, with the seller.

 

If, if, if, if, IF I were a "non real estate investor/entrepreneur/consultant-educated feller"...another words, your run-of-the-mill homeowner, I'd take that info....digest it and think to myself, "Why don't I just do that myself? What do I need them for? They just pretty much laid out a plan FOR me."

But, there's also the argument that they might actually NEED your services, expertise, and/or contracts.

It could be a toss up either way.

 

But like I said, it's just me...a personal thing...I save the details when presenting my offer.

I don't have a website, but whenever I'm speaking on the phone or via email with a seller (just anytime it's not face to face) I'll only use those mediums for setting the appointment.

Sure, I might tell them a lil to get them interested enough to want to meet with me.

But hardly anyone will want to do business with a stranger, offering complicated (to them) buying/selling solutions.

 

Hope this helps.

 

 

 

 

 

....yes, I still like the website!

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