Real Estate Assistant Certification Training Program

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2 Real Estate Assistant Certification Training Program Learn To Become A Highly Sought-After Real Estate Support Professional REA UNIVERSITY An organization dedicated to the Real Estate Assistant Community REA University Direct Marketing, FSBOs, Expireds and Farms 2

3 24 Kelley Crescent Wasaga Beach, ON L9Z 1J3 Canada Phone: (705) For more information on other programs and services, us at Version 3.0 REA University All rights reserved for entire book and audio/video programs. Reproduction or translation of any part of this work by any means without permission of the publisher is unlawful. Purchase of this training program does not grant you resell rights. REA University Direct Marketing, FSBOs, Expireds and Farms 3

4 DIRECT MARKETING, FSBOs, EXPIREDS AND FARMS What You Will Learn Section I: Introduction To Lead Generation: Direct Marketing to Farms, FSBOs and Expireds Section II: Definitions - Introduces the student to the terms of real estate direct marketing Section III: Farm Campaigns Section IV: FSBO Campaigns Section V: Expired Listing Campaigns Section VI: Conclusion Section VII: Lead Generation: Direct Marketing to Farms, FSBOs and Expireds REA University Direct Marketing, FSBOs, Expireds and Farms 4

5 Introduction to Direct Mail, FSBOs, Expireds, and Farms Direct Marketing involves printing materials that are sent to a particular market or group of people. Examples include former clients, expired listings or advertising promoted by the real estate professional. The point of Direct Marketing is to get the agent s name known in his preferred market. Direct Marketing is extremely important to any agent s business. It is as important as Internet Marketing. Any agent must have direct, concrete contact with his or her local customers. A Direct Mail strategy is relatively straightforward. The Direct Mailer creates hard copy marketing materials that are sometimes individualized for each recipient and sends them out to a particular group or market. In this module, we ll talk about several Direct Mail strategies. We ll also provide you with samples for illustration. An agent can do a great deal with Direct Mail, such as sending out a weekly newsletter, postcards describing recent sales, a brochure with personal information about the agent, custom imprinted promotional products, or advice for home buyers. The possibilities are endless. Direct Mail allows the agent to constantly change and expand the methods with which she gets her name known in her preferred market. The agent will likely rely on your expertise to create a Direct Marketing Strategy for them. Your goal will involve creating timelines for your agent to determine and track when the Direct Mail will and has occurred. But don t worry. You have many options for creating Direct Marketing strategies. For instance, you may do all of the Direct Mail writing, printing and mailing from your own REA University Direct Marketing, FSBOs, Expireds and Farms 5

6 desk, asking only for a fee to cover your costs. You might, however, pay for the services of a local printer and a mailing house to aid you. The most important thing you need to serve your agent is to find what works for you depending on your skills and desires. Real Estate Direct Mail Definitions Farms - A farm is the area that an agent does business, one that she claims some kind of ownership over. The agent, with your help, often cultivates the farm through direct marketing. People Farms - This refers to people your agent may relate to in a club or association setting. These people may change their residence but often stay connected with these clubs or associations. House or Neighborhood Farm - House or neighborhood farms are made up of dwellings outlined on a map and concentrated in one or a few areas. The agent reaches owners through their properties. In a house or neighborhood farm, people come and go but the house remains, so the occupants are the people agents will market. SOI - Another acronym, SOI refers to Sphere-of-Influence. These are people the real estate professional knows and would be apt to do business with them because they know them. This includes family, friends, acquaintances, people they do business with, belong to groups and clubs with, etc. FSBO (prounounced Fiz-bo) - FSBO is the popular acronym for For Sale By Owners. These are people who attempt to sell their own homes without enlisting the services of a real estate professional. Expireds - This is the term for expired listings, and those people who own the expired properties. REA University Direct Marketing, FSBOs, Expireds and Farms 6

7 Farming Campaigns Strategies for Direct Mail Suppose you are asked to generate a direct mail strategy. We recommend you begin with The Millionaire Agent written by Gary Keller, the founder of Keller Williams. We ll review the three strategies he details in his well-known book. Of course you won t want to copy these strategies directly. Rather, use them as a guide; you ll want to personalize whatever you do to a large extent, keeping in mind the target market and community of your agent. Farming: The Keller 8 x 8 Campaign Strategy #1-8 x 8 Campaign The following is a schedule for the campaign you might offer. Week One: The agent should drop off this package while introducing themselves to their farm. Create a letter of introduction Gather your agent s Resume and Testimonials REA University Direct Marketing, FSBOs, Expireds and Farms 7

8 Design a Personal Brochure for your agent Produce Business Cards Week Two: - Create and send a recipe card, inspirational card, Week Six: Produce and send a real estate investment or home maintenance tip. Week Seven: Produce and send a refrigerator magnet, notepad, or other usable giveaway (not throwaway!) with your name, logo, and contact infomation on it. Week Eight: Have your agent make another phone call inquiry to see if they received the giveaway, if they have any questions, if they're moving soon, etc. AND ask for a referral to anyone they may know that might be thinking of buying or selling. Farming: The Keller 33 Touch Program Strategy #2-33 Touch Program 18 Touches - A combination of eighteen s, mailings, letters, cards or drop-offs (which should include the agent's business card) and may be one of the following: A letter of introduction, personal brochure, market reports, Just Sold or Just Listed postcards, holiday cards, personal newsletter, recipe cards, property alerts, real estate news or articles, investing news or articles, community calendars, invitations, service directories, promotional items, etc. 8 Touches - Thank you or "thinking of you" cards. 3 Touches - Telephone calls by your agent. 2 Touches - Birthday cards (husband and wife). 1 Touch - Mother's Day Card 1 Touch - Father's Day Card * Source: The Millionaire Real Estate Agent, Gary Keller REA University Direct Marketing, FSBOs, Expireds and Farms 8

9 Farming: The Keller 12 Direct Program Strategy #3 12 Direct Program What follows are merely suggestions. Attend to the structure of the plan broadly for the main idea: First Month: Produce and distribute an Introductory Letter, with a brochure, resume, business card and relevant testimonials. Second Month: Produce and distribute a Fun Facts Postcard. Third Month: Produce and distribute a Dave Beson letter, perhaps concerning realtor values or integrity. Fourth Month: Produce and distribute a website introduction letter and enclose a business card. Fifth Month: Produce and distribute a second Fun Facts Postcard. Sixth Month: Produce and distribute a second Dave Beson letter concerning a new topic, such as realtor vision. Seventh Month: Produce and distribute a third Dave Beson letter concerning a third topic, perhaps concerning patience when selling your home. Eighth Month: Send Out a Third Fun Facts Postcard. Ninth Month: Send Out a Fourth Dave Beson letter, perhaps covering the topic of personal convenience and enclose a business card. Tenth Month: Continue to send out Dave Beson letters, maybe this time covering honesty in real estate transactions. Eleventh Month: Produce and distribute another Fun Facts Postcard. Twelfth Month: Send a final Dave Beson letter, perhaps concerning realtor services and enclose two business cards. You can begin this cycle at any particular time. Further, you can rearrange the order of Fun Facts cards and Dave Beson letters. But do have a stack of Fun Facts postcards ready to send when your plan calls for it. Dan Gooder Richard offers various pre-made postcards and agent reports that mimic Keller s that can be found at * Source: The Millionaire Real Estate Agent, Gary Keller REA University Direct Marketing, FSBOs, Expireds and Farms 9

10 FSBOs (For Sale By Owners) Campaigns Working For Sale By Owners, or FSBOs as they're better known in the industry, (pronounced "fizz-bows") is often a time-consuming activity but one that can reap great rewards in the way of new business for the agent. And because the best tactics are quite time intensive, they can be a terrific way for you to assist the agent. FSBOs are aplenty - especially in today's economic climate. You know the ones, the people that believe that there's nothing more to do to sell their properties than to stick a for sale sign on the lawn and watch the people rush in with offers in hand. FSBOs typcially try their hand at selling their own properties to save the real estate commission they would otherwise spend if they used a professional. Many though, often discover that it's a lot more difficult than they originally thought, and after a number of no-show appointments, and less-than-optimum interest in their properties, turn to a real estate professional in the end. You want the agent to be that professional, so you will need to devise a plan to make your agent memorable and of course, perceived as one who is well informed, reliable and competent to handle one of the largest transactions of their lives. According to NAR statistics, 75 per cent of FSBOs end up utilizing the services of a real estate professional to sell their homes. Here are some additional stats: For Sale By Owner (FSBO) Statistics Only 9 percent of today s sellers are FSBO sellers, and among those who chose the FSBO route, 44 percent knew the buyer who bought their home. Among those who did not previously know the buyer of the home, 15 percent of those were contacted directly by the buyer to purchase the home. FSBOs typically have a lower median selling price, though FSBOs typically received 98 percent of their asking price. Those who first tried to sell their home as a FSBO, but ultimately sold via an agent, were the youngest of all sellers and had the highest median household incomes. REA University Direct Marketing, FSBOs, Expireds and Farms 10

11 Most Important Reason for Selling Home as FSBO Did not want to pay commission fee: 47% Sold it to a relative / friend / neighbor: 24% Buyers contacted seller directly: 15% Did not want to deal with an agent: 8% Agent was unable to sell home: 4% Seller has real estate license: 1% Could not find agent to handle transaction: 1% Seller has a real estate license: 1% Other: * less than 1% Source: 2014 Profile of Home Buyers & Sellers, (National Association of REALTORS - Research, 2014). A working familiarity with For Sale by Owner, or FSBO, will help you work with an agent who sees FSBOs as a source of business. The term is used to identify property, usually homes, which are sold by the owner without help from a real estate agent. Typically, owners advertise their properties by means of websites, classified ads, word of mouth, and other means. Following are a number of ideas for keeping in touch with FSBOs and helping to keep the agent top of mind in the instances that these people decide to give up their plans to go it alone. REA University Direct Marketing, FSBOs, Expireds and Farms 11

12 Assist the Agent In Building A FSBO Campaign Offering to create and monitor a FSBO campaign increases your value to an agent. Among the tasks you can do are: Offer to create a FSBO campaign via an action plan in the agent s database, such as Top Producer. If the agent offers free FSBO material via ads or via his or her Web site, monitor the s from the FSBO in answer to the requests Gather a list of current FSBO s online. Some sites for doing so include: HomesByOwner.com For Sale By Owner.com FSBO.com PropertySites ByOwner.com ByOwner.com You could also suggest adding a FSBO section to the agent s Web site which includes a registration page that must be completed prior to the visitor reviewing the FSBO properties. This allows you to gain contact information from the FSBO in order to market to them. Contacting FSBOs As A Buyer s Agent Often, an agent will contact the FSBO and ask if they work with Buyer Agents. The agent can show the property to any buyer that is interested, and if he or she sells the property, the agent earns a commission. Many agents will call the FSBO and ask if they have permission to show the property to a buyer. Having initiated contact, they can offer their services to list when they are ready to use an agent. Important Note The unlicensed assistant (VA) cannot contact the seller. REA University Direct Marketing, FSBOs, Expireds and Farms 12

13 The key in contacting a FSBO and hopefully listing their home is being the first to get them direct mail or information on the agent s services. You might send them a package of information on the agent which would include: A bio of the agent Testimonials Personal brochure with a cover letter introducing the agent Useful information that would help the FSBO sell their home themselves, such as a checklist for pre-qualifying potential buyers, typical real estate forms that may be needed, etc. A package including a CMA (Comparative Market Analysis) for the seller s home, together with a list of services the agent could offer the FSBO for a flat rate or explain how the commission works. An offer to refer the owner to a good agent in their new location, should they be moving out of your area. Relationship Building Why help the FSBO by providing such items as real estate forms and checklists? As previously discussed, the great majority of FSBOs eventually enlist the services of a real estate professional to sell their home. They will be more likely to engage the services of a real estate professional who has been helpful and informative (know, like, and trust factor). Enhancing FSBO Campaigns Your Outlook databases and real estate specific databases allow you to create a system for tracking the campaign to get the FSBO s business. Using Outlook for example, you would create a category under the agent s name and then another category called FSBO. You would list all the FSBO information in the Contact Record. If there is a photo of the home, you can also insert it in this Contact Record. REA University Direct Marketing, FSBOs, Expireds and Farms 13

14 A better tool in building an ongoing FSBO campaign is the agent s real estate specific database. Such databases are designed to incorporate these types of campaigns. Either Top Producer or Online Agent, the two leading real estate databases, give you the ability to create action plans, a pre-planned series of contacts for any target group. In this case, a FSBO campaign. Becoming familiar with the action plan function of a real estate database should be one of your first goals as you learn the database. Dave Beson s FSBO letter campaign is included in Top Producer. In addition to utilizing some sort of systemized tracking campaign, there are several programs available that help in that effort. They include: Mark McKee Success Strategies Dave Beson s LetterWriter Series Warnock Landvoices Two FSBO Campaign Ideas Send A Letter A Day. Personalized form letters, combined with phone calls can lead to a successful listing meeting. Create A Free Service Package. Research market values in the area, and your agent can knock on the door armed with this information. Phone for an Appointment. Send . REA University Direct Marketing, FSBOs, Expireds and Farms 14

15 FSBO Campaign Idea #1 - Send A Letter A Day This system can be carried out with all FSBOs in the agent's farm or other targeted area without any research beyond learning each FSBOs name, address and phone number. Enclose your agent's business card with every mailing to ensure they remain top of mind if/when they decide to enlist the services of a real estate professional to sell their property. In a large kraft envelope, send a blank copy of a purchase agreement. Hand-write a note (preferably on personalized paper with photo, and phone number): Day One: "Sorry you're leaving us! Here's a copy of the form you'll need to sell your house. If you'd like an explanation of any of the terms, please give me a call. No obligation." Day Two: In a #10 envelope, send a blank sellers' net sheet and a hand-written note: "Here's the form we use to figure your net walkaway dollars. Please feel free to give me a call if you don't have the formula to figure these items. Again, no obligation." Day Three: In a square envelope, send a blank Guidelines to Market Value form and a handwritten message: "We use this form to summarize the market price setting facts. If you'd like me to develop this data for your home, please give me a call. No obligations, of course. We're here to serve you." Day Four: Have your agent wait until they've received that day's mail, then knock on the door or phone and say, " Hi, I'm with (real estate company name). Are you getting the forms I've been sending to help you market your home?" People will often feel obligated to give the agent some details about their home because they've been providing them with useful information. They can then continue to work the lead depending on how warm or cold. FSBO Campaign Idea #2 - Create & Provide A Free Service Package Develop a package of written material to help the FSBO market their home, and offer it to them at no cost during an evening phone call. The package should provide information they can use, and it should also introduce them to the complexity of real estate transactions. The package should consist of flyers and blank forms. The flyers should be created on the company letterhead and contain your agent's phone and contact information. REA University Direct Marketing, FSBOs, Expireds and Farms 15

16 This package can contain: Real Estate Purchase Contract/Agreement Receipt for Deposit Buyer's Net Sheet Seller's Net Sheet Power of Attorney form Guidelines to Market Value Advertising Rates & Numbers ot Call to Place Ads in Local Newspapers and Magazines A Tip Sheet On How To Get Your Home Ready For Sale A Tip Sheet on How To Ready Your Home for the Open House Federal and State/Province Financing Plans Available to Finance the Purchase of the Home A Brief Discussion of Conventional Home Financing Fixed Rate and Adjustable Rate Mortgages Your Agent's Latest Newsletter List of Items Needed to Complete the Sale (i.e., termite inspections, roof inspections, appraisals, assessor's parcel number, legal descriptions, building permits for any improvements, title insurance, etc.) REA University Direct Marketing, FSBOs, Expireds and Farms 16

17 Expired Listings An expired listing is a property that was listed by another agent but that did not sell during the time of the listing agreement. Expired listings are a good source of business, one that many agents pursue avidly. Most MLS systems contain a list of expired listings. Should your agent wish to conduct a campaign to list expired listings, you might be the person in charge of monitoring the MLS each day so that you can present him or her with a list of the new expireds. You can create a spreadsheet or some other kind of document that lists the property address, owner s name and any information available from the previous listing, such as the price of the property. Your agent might want you to begin an automatic contact campaign as soon as the expired listing comes through. Keep in mind that as with any campaign or program you put in place for your agent, he or she will want to have input as to how the campaign is to be conducted. Other Items to Consider When Undertaking FSBO or Expired Listing Campaigns As with any other facet of the agent s business, it is important that you are the detail person. In other words, your job is to adequately track your efforts and activities. A few things to consider include: You should provide the agent with a weekly list of all the expired and FSBO s that have been contacted. You will also need to keep track of all expenses involved in your marketing efforts. Provide accurate and timely feedback whenever you have contact with an expired or FSBO Note: The unlicensed assistant/va cannot contact an expired or a FSBO directly. This would be considered prospecting and is not legal in most states and provinces. You can write letters, send material, etc., but you can t literally talk to anyone about a property. Note: The newer privacy acts prohibit direct contact with expireds in many areas. What may be permitted is promotional efforts to a neighborhood that includes the expired listing. Check your state or provinces regulations to ensure your intended campaign is permitted. REA University Direct Marketing, FSBOs, Expireds and Farms 17

18 Just Listed and Just Sold Postcard Campaigns A popular marketing strategy is to distribute Just Listed and Just Sold postcards. When a new property is listed, creating a Just Listed postcard and having it distributed to the surrounding neighborhood not only lets people know the property is on the market, but also serves to increase the awareness of the real estate professional There is a terrific method to use Just Sold postcards that I learned from one of my highly successful clients (he was in the top 3 for his franchise in all of Canada). It s called the technique, and I believe he learned it from one of his coaches. Pass it along to the agents you work with: Create a Just Sold postcard for a property that has just closed. The agent personally knocks on the doors and hand-delivers the postcard to 10 houses on the left of the property sold, 10 houses on the right, and the 20 houses across the street. This gives the agent the opportunity to introduce herself and to inquire if these property owners are considering selling. Many a new listing has been signed by my client in this manner. The real estate business (along with a great majority of other businesses), are built on relationships, and this is an excellent way to foster them. Newsletters and ezines Another way to build relationships is to regularly keep in touch with farms and other potential and past clients by creating and distributing a regular print newsletters or online ezines. Provide readers with information they will find interesting and valuable, such as current market updates (the state of the current real estate market, number of properties listed and sold in their area, homeowner maintenance tips, recipes, etc.). A message from the agent can help to keep it personal and allow the reader to get to know her. Property Value Postcard You ve probably seen a postcard from a local real estate professional that says something like, Find out how much your home is worth. These can be very effective in persuading prospective clients to contact the real estate professional for a complimentary, no obligation CMA (competitive market analysis). REA University Direct Marketing, FSBOs, Expireds and Farms 18

19 Offbeat Idea Here s an idea I came up with when I was working with an agent in Alaska that we found quite successful. Alaska, being a state that a lot of people move in and out of, referrals often play an important part in a real estate professional s earnings. In order to cultivate referrals from out-of-state agents, we created an ezine for other real estate professionals. In it, we included information that would interest them, such as marketing tool reviews, personal sales improvement articles, along with market information from my broker s area and an outline of his referral program. Exam Please proceed to the Direct Marketing examination. REA University Direct Marketing, FSBOs, Expireds and Farms 19