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Vendor List Prospecting Strategies
- Prospecting: Prospecting is a structured process based on understanding the needs of the target market and providing added value to potential sellers.
P = L * R * CP: Prospecting success.L: Leads.R: Response rate.C: Conversion rate.
Increasing the number of leads, improving the response rate, and increasing the conversion rate all increase the likelihood of obtaining a seller listing.
- Motivation Theory: Individuals make decisions based on their desire to meet specific needs, such as the need for financial security, the desire to move to a larger/smaller home, or the need to dispose of a property that represents a burden. Prospecting should focus on identifying these needs and providing appropriate solutions.
- Data-Driven Marketing: Identify areas with the highest percentage of homes likely to be sold, understand the demographics of potential sellers, and customize marketing messages to suit their needs.
- FSBO (For Sale By Owner): Homeowners believe they can save money by avoiding paying a real estate agent commission. However, they often face challenges in pricing, marketing, negotiation, and managing the legal aspects of the deal.
- FSBO Package: A comprehensive information package that includes a CMA (Comparative Market Analysis), statistics on the time it takes to sell homes with a real estate agent versus self-selling, and a list of the services offered as an agent.
- 8 × 8 for FSBO: A structured communication plan that includes 8 contacts over 8 weeks, including phone calls, emails, personal visits (respecting the owner’s privacy), and providing valuable advice on home improvement, pricing, and marketing.
Savings_Agent = Price * Commission_Rate - (Price_FSBO - Price) Savings_Agent: Client savings using❓ an agent.Price: Expected sale price by the agent.Commission_Rate: Commission rate.Price_FSBO: Sale price obtained without an agent.Price: Actual sale price obtained.
This formula illustrates mathematically how an agent can save the client money even after deducting the commission by obtaining a better sale price.
- Expireds: Properties that were not sold during the original contract period with another agent represent a great opportunity. Sellers are often frustrated and willing to try a new strategy.
- Expired Package: An information package that includes an analysis of the reasons for not selling the property (such as inappropriate pricing or ineffective marketing), a proposed new strategy, and testimonials from previous clients.
- 8 × 8 for Expired: A structured communication plan that includes 8 contacts over 8 weeks. The goal is to build trust and demonstrate the ability to solve the problems the seller faced with the previous agent.
- Just Listeds: When a new property is listed in a particular area, local residents are more likely to think about the value of their own homes.
- Just Listed Cards: Send postcards to homeowners in the area surrounding the new property.
- Direct Prospecting: Visit or call homeowners in the area surrounding the new property. Use the postcard as a starting point for the conversation (“Hello, I am [Your Name] from [Company Name]. Did you receive the postcard I sent you about [Property Address]?”).
- Free CMA Offer: Offer a free analysis of the value of their homes.
- Just Solds: When a property is sold in a particular area, local residents are more interested in the real estate market.
- Just Sold Cards: Send postcards to homeowners in the area surrounding the property that was sold.
- Direct Prospecting: Visit or call homeowners in the area surrounding the property that was sold. Use the postcard as a starting point for the conversation.
- Free CMA Offer: Offer a free analysis of the value of their homes.
- Marketing vs. Prospecting: Marketing is a time-consuming activity that is effective in generating a large number of potential customers in the future. Prospecting is a proactive activity that allows you to stay in direct contact with potential customers and helps you achieve your goals in the present.
- Data-Driven Marketing and Enhanced Prospecting: The best strategy is to focus on marketing (to achieve long-term goals) and enhance it with prospecting (to achieve short-term goals).
- Diversify Sources: Do not rely on a single source of potential customers. Use a variety of strategies to increase your chances of finding seller listings.
- Marketing to the Database: Use your customer database to communicate with potential customers. Divide the database into different groups (such as former customers, friends, and family) and customize marketing messages to suit their needs.
- Spheres of Influence: Focus on developing your relationships❓ with your inner circles (such as allies, advocates, and core supporters). These people are most likely to refer you to their clients.
- Tracking Results: Track the results of each prospecting strategy you use. This will help you identify the most effective strategies and focus on them.
- KPIs (Key Performance Indicators): Define key performance indicators to measure the success of your prospecting efforts. These indicators may include the number of leads generated, the response rate, the conversion rate, and the cost of acquiring a seller listing.
- Continuous Improvement: Use the data you collect to continuously improve your prospecting strategies. Experiment with new methods and modify existing methods to increase their effectiveness.
- Transparency: Be transparent with potential customers about your services and fees.
- Respect: Respect the privacy and time of potential customers.
- Compliance with the Law: Comply with local and national laws and regulations relating to real estate marketing and prospecting.
Chapter Summary
This section of the training course “The Arts of Prospecting and Converting Clients into Successful Real Estate Marketing Agents” addresses the vital topic of “strategies❓ for Prospecting Seller Listings.”
Key Points:
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Four Pillars of Prospecting:
- For Sale By owners❓ (FSBOs): Develop an “FSBO package” to be delivered in person or by mail.
- Expireds: Develop an “Expired package” for sellers❓ after their contracts expire with other agents.
- Just Listeds: Send “Just Listed” cards to surrounding homes and prospect directly to start conversations about real estate services.
- Just Solds: Send “Just Sold” cards and follow up with direct prospecting and a free Comparative Market Analysis (CMA).
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Diversification in Lead Generation: Diversify prospecting methods to cover a wider range of sources as a hedge against market fluctuations.
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Balance between Marketing and Prospecting (Marketing-based, Prospecting-enhanced): Marketing is time-leveraged, allowing for long-term lead generation. Prospecting keeps the agent proactive and allows for active participation in creating job opportunities, especially important in a declining market.
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Expanding Marketing and Prospecting Activities: Gradually expand marketing and prospecting activities by adding a limited number of new activities (3-4) and measuring their impact on lead generation.
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Focus on Building relationships❓: Focus on spending time with the inner circles of the database, including allied resources, advocates, and core advocates. Direct telemarketing teams and sales specialists to work on behalf of the agent.
Conclusions:
- Prospecting for seller listings is a proactive activity focusing on FSBOs, Expireds, Just Listeds, and Just Solds.
- Diversifying lead generation strategies is crucial for long-term success and hedging against market fluctuations.
- Balance marketing and prospecting to ensure sufficient lead generation in all market conditions.
- Building strong relationships with the inner circles of the database is critical for generating referrals and achieving success.
Implications:
- Real estate marketing agents should allocate sufficient time and resources to prospecting activities, focusing on the four key areas.
- Agents should develop detailed❓ marketing and execution plans for FSBOs, Expireds, Just Listeds, and Just Solds.
- Agents should regularly monitor and evaluate the performance of their prospecting strategies and adjust as needed.
- Agents should invest in building strong relationships with their clients and professional networks to encourage❓ referrals.
