Transcription
Complete ForeclosureMarketing SystemYour guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.
Contentstwo : Introductionthree : Foreclosure statistics at a glancefour : How to get your foot in the foreclosure listing marketseven : Become the go-to agent for the most comprehensiveforeclosure listnine : Get your foreclosure listings noticed in a cluttered marketten : Get your foreclosures noticed before all other listingstwelve : Expand your social networkthirteen : Bonus tips for promoting your listings to social networksfourteen : Establish a secondary lead flow sourcefifteen : Foreclosure Marketing Checklist1
Do you have a system for capturing and or increasing foreclosure market share? In today’s realestate market, focusing on a niche market is one of the most crucial things you can do to stand outfrom the crowd. 70% of home buyers said in a recent survey that they would be more likely to workwith an agent who specialized in the property type they are most interested in. When it comes tonavigating the foreclosure market, buyers are even more discerning in their desire to work with aproven expert. That dictum also holds true for banks looking for the right agent to market their listings.Before an asset manager works with you they want to know your foreclosure sales performanceincluding your average days on market and percentage of asking price.Before home buyers and out of state investors work with you they want to know if you can show themthe most comprehensive list of foreclosure properties including homes that haven’t hit the market yet.This guide will walk you through step-by-step on how to attract more buyers who are interested inforeclosures while also giving you the tools to impress asset managers. Whether you already havea foothold in the foreclosure market and want to increase market share or have decided to make aconcerted effort to make it your predominate niche, this guide will show you how.This step-by-step guide will share ideas for ways to: Brand yourself as a foreclosure specialist Reposition your focus on foreclosures in your existing ads Make sure your sphere of influence knows you are a foreclosure specialist Get your foreclosure listings noticed in a cluttered market Win more foreclosures from banksIn the end you’ll need to decide which side of the foreclosurebusiness you want to spend your energy on. Listings will still be thedomain of top agents. However, with foreclosures the buyer’s agenttends to make the biggest profit. As an example a listing may have6% total commission - typically 3% will go to the buyer agent, 1.8% tothe listing agent and 1.2% referral fee to the asset manager.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.2
Foreclosure statistics at a glance.From the Center of Responsible Lending Foreclosure projections (2009-2012): 9,000,000 Total foreclosure starts (Q1-2008 through Q4-2009): 4,315,703 Total foreclosure sales (Q1-2008 through Q3-2009): 1,296,690 Total foreclosure inventory (end Q4-2009): 2,076,756 Total past due mortgages (end Q4-2009): 6,806,224 4Q annual change in foreclosure starts (ending Q4-2009): 11% Change in foreclosure starts (Q3-2006 to Q4-2009): 155%NAR’s chief economist Lawrence Yun said, “The so-called shadow inventory of homes taken overby banks or in the process of foreclosure may total as many as 800,000, while as many as 2 millionadditional dwellings are 90 days or more delinquent and headed for foreclosure.”Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.3
How to get your foot in the foreclosurelisting market.While the foreclosure market can be very lucrative for REALTORS it can also be daunting when itcomes to getting your foot in the door. So how can you establish yourself as a foreclosure specialistand secure listings? This guide will show you what many REALTORS are doing to get into theforeclosure business.1. Hold open houses for other foreclosure agents: This will give you an opportunity to learnfrom other agents who are already established in the foreclosure market and enable you to engagewith investors and buyers in this field.a. Make sure that you promote your foreclosure open houses in as many places as possibleto help establish your connection to the foreclosure business. Try running ads on Craigslist,leave flyers at local businesses, start a blog discussing your open houses.b. Go the extra mile and offer to take pictures and shoot home tour videos of the property toaccompany your advertising of open houses to get more people through the door.c. Getting this exposure will help you get noticed by asset managers and banks and helpopen the door for securing your own listings in the future.2. Apprentice under a foreclosure agent in your office: Many agents will often hold theirtrade secrets close to the vest, however many other agents will gladly share information if it meansgetting assistance and help selling their listings. Start talking to foreclosure agents in your office tosee if there is interest in assisting them.3. Connect with loan officers and bank managers that you already have relationshipswith: Much of your business is already based on relationships and referrals. Take that same strategywhen getting into foreclosures. Start contacting loan officers at local banks you are already workingwith and see if they can refer you to their asset manager. Make every relationship work in your favor.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.4
How to get your foot in the foreclosurelisting market. (cont.)4. Contact asset management companies: Asset managers are going to be your bestconnections to securing foreclosures. The drawback is that many other agents are targeting thesame asset managers. Your best bet is to find out which asset managers are working in your marketand begin soliciting information. While many asset managers already have agents they work with, tryfinding asset managers that are just about to release listings for your area – they may not yet havean agent.5. Complete as many Broker Price Opinions (BPO) as possible: Contact as many banksas possible to complete BPOs. Oftentimes banks will offer a foreclosure listing to test an agent outafter working with them on BPOs. You may have to complete 10 to 20 BPOs in order to establish arelationship. Sometimes they will even offer the listing to the agent who successfully completedthe BPO.6. Use short sales to connect with banks: Chances are you’ve already worked with banks tobring buyers to a short sale. Now go back to those banks and show them how you will bring buyersto their foreclosures.7. Contact the closing attorney you work with on standard transactions: Attorneys willoften times have other connections to help get your foot in the door with asset managers.8. Go to the websites of banks and look for the REO page: Doing your research is crucialand every bank has a different process and rules. Start by compiling a list of banks dealing withforeclosures and search for the asset managers. Once you’ve compiled your list, begin sending outletters and emails to promote your real estate marketing services.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.5
How to get your foot in the foreclosurelisting market. (cont.)9. Track properties before they foreclose: Start watching distressed properties before theybecome foreclosures. The more educated you are about the properties in your area the moresuccess you’ll have. This will also give you an opportunity to get in touch with banks and assetmanagers during the early stages.10. Get foreclosure certified: Many banks will require that you are certified to sell foreclosures.Some certifications include NAR’s Short Sales and Foreclosure Resource Certification, CertifiedDistressed Property Expert and REO Default Certified Professional. Many banks now have theirown certifications and may require that you take their courses as well.11. Sign up to sell HUD REOs: Any agent can apply to sell HUD homes. This will provide one moreavenue to show that you are capable of selling foreclosure homes.12. Contact FreddieMac (Homesteps) or FannieMae (HomePaths): Again these are moreresources to get your foot in the door. Both of these websites provide information and submissionforms for agents.13. Network on as many sites as you can: It’s all about relationships so you’ll want to connectwith foreclosure agents, bank managers and asset managers on popular networking sites suchas REALTOR.com REALTOR Profile Pages, REOMAC, Facebook and Linkedin .Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.6
Become the go-to agent for the mostcomprehensive foreclosure list.There are two ways to become a successful foreclosure agent. First, secure foreclosure listings fromasset managers and banks. Second, become the agent that has the most comprehensive list ofpre-foreclosure and foreclosure homes. For many agents showing foreclosures is more desirablethan listing since it can mean a higher commission on the buyer side of the transaction, less upfrontmarketing costs and a lower barrier to entry. This section of the guide will provide tips for discoveringthe most comprehensive foreclosure, REO and distressed homes listings for your homebuyer andinvestor clients.1. Pull a daily list of foreclosures from your MLS: while you won’t capture every foreclosurethat is on the market or about to hit the market, your MLS will still provide a great foundation for yourlist of foreclosures. Sometimes banks will not allow their properties to be marked as foreclosures inthe MLS, so you’ll have to try different keyword searches to pull the maximum inventory.2. Compile a list of all of the banks that have financed homes in your local market:Contact the foreclosure department of these banks and let them know that you would like a regularlist of pre-foreclosure, foreclosure and REOs to show your clients.3. Become familiar with the top foreclosure auction houses: Oftentimes the best dealson distressed homes can be found at auction houses. You’ll want to keep a freshlist of auction homes available for your investor clients along with dates.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.7
Become the go-to agent for the mostcomprehensive foreclosure list. (cont.)4. Contact the top REO brokers/agents in your area: You’ll find that many brokers withlarge REO/foreclosure inventory do not have the time to service buyer inquiries. Get to know thetop brokers who specialize in foreclosures and offer to market their listings on Craigslist and othersites. Also, offer to hold/promote open houses which will help you attract even more potential buyerclients/investors.5. Pull a list of HUD foreclosures: Oftentimes HUD foreclosures will not be represented by alisting agent nor be entered into the MLS. This will help diversify your list of foreclosures and helpmake you even more of an asset to investors and serious foreclosure buyers.6. Contact local real estate attorneys: Get to know the most active real estate attorneys inyour market. Often times they will be representing banks when it comes to sending out notices ofdefault. In other words, they will oftentimes be the first to know about potential new foreclosurelistings before anyone else.7. Check your local newspapers: Most counties require that banks give a public Notice ofDefault (NOD) or notice of intent to foreclose on a property in a local newspaper.So be sure to check local papers in the legal notices section.8. Federal, state and county seizures: You’ll also want to stay intouch with other government agencies for foreclosures. Most agencieswill provide a list for a nominal fee.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.8
Get your foreclosure listings noticed in acluttered market.In some markets there is a lot of inventory. Making your foreclosure listings stand out is crucial if you’regoing to reach enough potential buyers. It’s also important to asset managers who are searching foragents to market their listings.How do you differentiate your foreclosures? Make sure your listings are seen on the most popular real estate sites Add a foreclosure call out on all of your listings wherever they are seen Add a note on your listings offering buyers a comprehensive list of foreclosures Make sure your mobile phone number is highly visible and ready to receive callsB O N U ST I P :REALTOR.com makes it easy for your listingsto stand out by placing a “foreclosure badge”on your listings – visible from the search resultspage where potential buyers scan listings andon the detail page itself. You can also enhanceyour listings with Showcase Listings to helpgain more prominence during the search.Call888.603.7048to learn more aboutShowcase Listing Enhancements.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.9
Get your foreclosures noticed before allother listings.If your foreclosure listings aren’t being seen they aren’t being sold.Don’t limit who sees your listings. Remember even if the same people see your listings on multiple sites,you are building name recognition with foreclosure buyers and asset managers. However, more thanlikely most of the sites you advertise on will not have a large amount of overlap since many consumersprefer to stick with one major site for their property search.The key to getting calls coming in will always be based on the number of times your listings are seenonline. Getting those numbers up on as many sites as possible will be crucial. Choose the sites with themost traffic.B O N U ST I P :REALTOR.com is not only the most traffickedreal estate site,1 it also has special programsdesigned to direct buyers to your listings sothat they lead to calls and emails to you.Want your listings to be seen before all othersin your local market? Ask us about featuringyour foreclosures in a position that can boostyour consumer traffic and help increase buyerinquiries.Call888.603.7048to learn more about how to Featureyour foreclosures first.1comScore Media Metrix, May 2010.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.10
Create ads with incentives to contact you.While letting your listings generate buyer interest is key, so too are other forms of advertising. Startrunning ads that get buyers to contact you to receive something of value. Whether you are running adson sites such as Craigslist, REALTOR.com or even newspapers or magazine, having a clear offer isimportant to garner direct responses. It’s also crucial to have a lead capture page attached to your adsand even your website.What should your ads offer? Get my FREE list of Bank Owned – REOs – Foreclosures Get my FREE foreclosure buyer guide include glossary of terms Get my list of pre-foreclosures and learn about properties before they hit the market Receive my FREE daily list of reduced priced homes and foreclosuresB O N U ST I P :REALTOR.com offers a special foreclosuread campaign and lead capture system. It’sdesigned to help promote you as the localforeclosure specialist to the largest audienceof buyers online while capturing their contactinformation.Call888.603.7048to learn more about theFeatured Agent Foreclosure SpecialistMarketing System.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.11
Expand your social network.The latest NAR consumer study reveals that 53% of transactions are conducted through socialnetworks.1 More than half of real estate purchases are through someone who knew the REALTOR orthrough a referral. Now that these social networks are expanding from clubs, political organizations,and school activities to online social networks, you and your listings need to be there as well!What’s even more revealing is that many agents who specialize in foreclosures are now networkingwith other foreclosure agents across the U.S. Essentially a nationwide foreclosure referral networkhas been created. Now asset managers and bank are asking agents if they would recommend otheragents in other cities across America to represent their foreclosure listings.Why are online social networks crucial to your business? 90% of consumers use the internet to search for a home.2 Close to 177 million Americans are active on social networking sites.3 Nearly 74% of those users are active on Facebook , the #1 social networking site.3 Facebook has the highest average time spent using per visitor at 4 1/2 hours.31National Association of REALTORS Study.2National Association of REALTORS , Profile of Home Buyers and Sellers, 2009.3comScore Media Metrix, May 2010.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.12
Bonus tips for promoting your listings tosocial networks.1. Set up an account on free sites such as Facebook and LinkedIn and don’t forget to remain activewith it. As the old saying goes, out of sight, out of mind.2. Log-in a few times a week to check in on folks. Staying active is important as you never know whensomeone in your network is thinking of real estate or someone might refer someone to interested inforeclosures or investment property.3. Provide up to date information about market conditions and things of value about the localcommunity and stay in-touch with your network just as you would a friend with personal notes.4. Never spam your network with listings: one of the biggest mistake agents make is promoting theirlistings on their profile wall everyday so that their listings appear to their entire network in the areawhere comments appear. For the majority of your network who are not currently active in realestate, this can be an annoyance.5. Simply post a link to your listings on your profile in a way that does not spam your network.REALTOR.com now offers a free Facebook application that will promote yourentire foreclosure listing inventory in an unobtrusive manner.And by the way, home buyers are also able to share your listings with new social networking “sharebuttons” now installed on every listing on REALTOR.com .Call888.603.7048 or join us atwww.Facebook.com/realestatemarketer to get the app.Your guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.13
Establish a secondary lead flow source.Marketing your listings and yourself so that you stand out as the foreclosure specialist in your marketwill always be crucial to your success. However, your advertising and marketing efforts will tend to ebband flow depending on your campaigns and messaging. It’s always a good idea to find other sourcesof leads to ensure that you have a steady flow always coming in. This is also important when workingwith asset managers and banks who want to know what you are doing differently to attract buyers.B O N U Sby REALTOR.com Be among the first to see a hot new property Avoid missing out on your ideal home Save time on your home searchExamplesCity, StateZip CodeAny Town, USA91234AddressStreet123 Any Street, Any Town, USAny Street, Any Town, USSign-up for home search alerts today It’s FREE!Get StartedT I P :REALTOR.com offers a program that willenable you to work with buyers who sign up forautomated listing alerts on the site when newby REALTOR.com Sign-up for home search alerts today It’s FREE!Get Started.listings come on the market. Every time thesehome buyers receive an automated new listingGet personalized local information and listings from a REALTOR in your neighborhood. Click here to follow up with a REALTOR .Trouble seeing this email? » View online Please add email@consumer.realtor.com to your safe senders list.SEARCH ASSISTby REALTOR.com contact information will be attached. You willYour Latest Listing UpdatesHi Connie Consumer,Here are your most recent Search Assist results. Ifyou don’t find what you are looking for please contactme to help refine your search and provide homes youare interested in.As new listings enter the market you will be amongthe first to know with updates sent several times aday. To view all listings that match your search go toREALTOR.com .alert from REALTOR.com your name andKelly Agent, AgentReal Estate Redefined(800) 123-4567 cellI’m here to help you findthe home of your dreamsin Any Town.Contact me if you haveany questions.also have the ability to contact them, updatetheir search and offer your foreclosure listings.See All ListingsSearch Results View all 23 properties2243 Hollister StSave ListingAny Town, USA 279,500 ( Check Mortgage Rates )3 Bed, 2 Bath1,723 Sq Ft on 1.42 Acres (61,855 Sq Ft Lot)25Call888.603.7048to learn more about Buyer Assist.Brokered by: Quest Realty998 Pleasant ViewSave ListingAny Town, USA 329,300 ( Check Mortgage Rates )3 Bed, 2 Bath1,385 Sq Ft on 0.35 Acres (15,246 Sq Ft Lot)23Brokered by: Quest Realty5817 Colfax AVSave ListingAny Town, USA 419,226 ( Check Mortgage Rates )3 Bed, 2.5 Bath2,862 Sq Ft on 0.45 Acres (19,602 Sq Ft Lot)20Brokered by: Quest RealtyYour guide to dominating the foreclosure market andestablishing yourself as a foreclosure specialist.14
Foreclosure Marketing Checklist:Use this step-by-step foreclosure marketing checklist to help sustain your campaign.Now that you have a comprehensive plan in place, now check the list to ensure that you are:1. Able to demonstrate how you can help guide consumers efficiently thru the foreclosure process.2. Providing an offer such as “Get my list of the hottest, value priced homes or foreclosures” or“Get my Guide: everything you need to know about foreclosures”3. Available to help consumers understand the foreclosure market and what they will need to doto move forward with a transaction.4. Creating messages that reinforce your foreclosure expertise across all marketing venues bothoffline and online.5. Getting the foreclosure message to your social network so that you are the one they ask whenthere are questions about foreclosures.6. Implementing a system for capturing and responding to foreclosure leads.7. Updating your website and business card to reflect your foreclosure expertise. 2010 REALTOR.com All rights reserved. rdc foreclosure marketing system 061710
Contact the foreclosure department of these banks and let them know that you would like a regular list of pre-foreclosure, foreclosure and REOs to show your clients. 3. Become familiar with the top foreclosure auction houses: Oftentimes the best deals on distressed homes can be found at auction houses. You'll want to keep a fresh
