Every week Gooder Group provides one seller topic and one buyer topic to help you craft a new post (or two or a series) for your blog that will help educate your readers.  And, if you need more ideas for blog posts, be sure to visit our blog archive for even more seller and buyer topics.

Buyers topic for your blog:

As always, buyers are looking for the best price on a home to buy.  Mortgage interest rates are inching upwards again, but still near historical lows.  Provide a simple calculator or chart (especially good for those visual learners!) that shows a typical range of home prices in your area, different down payments, various interest rates and monthly mortgage payment.  When buyers see how much they can afford to buy in the neighborhoods they’re interested in, it can encourage some of those buyers to make a move.

Sellers topic for your blog:

Sellers who are underwater may believe that they have no options available to them except to stay put or walk away.  Various other options exist including short sales.  Explain short sales in detail explaining the pros and cons for the home seller, the future home buyer and the mortgage holder’s role.  (On a side note you may consider explaining in a later post how traditional sellers on the market fare better against these short sales by being able to sell with fewer “strings attached” and a more attractive time line to ownership.)

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Gooder Group provides one buyer topic and one seller topic each Sunday.  You can check here each week for a new topic to use on your blog for one day or a series.  And, if you’d like even more ideas, be sure to review our blog topic archive for other post ideas.

Buyers topic for your blog:

Short sales are in the news quite often, but home buyers, especially first-time home buyers, may not fully understand what short sale means.  Define short sale in detail, provide a list of pros and cons in buying a short sale home, and explain the time requirements often necessary in trying to purchase one of these homes.  Your clarity will help home buyers understand short sales and be able to make an informed decision whether trying to buy one of these properties is right for them.

Sellers topic for your blog:

Price is always the touchy subject when selling a home.  It’s always a good idea to discuss the art of pricing a home to sell versus pricing a home to sit.  Outline the advantage of pricing a home in order to not chase the market, but find a buyer quickly.  Provide some local data to showcase homes that are selling in your area and what a new home seller’s competition is up against.

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Tied directly to Dan’s presentation on the value of niche marketing for short sale listings, is his new e-book SHORT SALE MARKETING: How To Beat Your Competition To Short Sale Listings.  This e-book exclusively for real estate rainmakers takes the first comprehensive look at the offline and online worlds of short sale marketing.  Dan demystifies short sale marketing and details the proven strategies of cross-linked marketing, social media marketing, Craigslist campaigns and multi-channel marketing with practical and proven methods that have spelled success and profitability for top short sale specialists.

Short Sale Marketing illustrates that real estate rainmakers who are able to take full advantage of one of today’s hottest markets — and who know what works and what doesn’t work — are a step above and a step ahead of their competition.  The key is knowing how to bring in more leads and more short sale listings while spending less time and less money.

For a limited time, new subscribers to Gooder Group’s RAINMAKER NICHE SITES for Short Sale Sellers get a free copy of the e-book with their initial set-up. The e-book can also be purchased for $69.95 by contacting Gooder Group.

Let us know how you are capturing short sale sellers in your market.

Use code 2525 to sign up; if your registration is rejected, that demo time slot is filled so please select another time.

Did you know? 

• Foreclosures are expected to go up 10% in 2010 to nearly 2 million…the highest annual total in history…according to Moody’s Economy.com.
• Millions of ARMs will reset this year, creating a new wave of foreclosures to crest in late 2010 and spill over into 2011.
• Nationwide foreclosure rate won’t peak until after unemployment goes down, perhaps late 2010 or 2011, NAR economists predict.
• Short sales and deeds in lieu will reach 490,000 this year nationwide, up from 313,000 in 2009, according to Moody’s estimates.

Gooder Group guarantees you’ll take away at least 3 new ideas for today’s short sale market that will dramatically improve your productivity and produce more money for your business.

RSVP today and let us know how you will start targeting short sales in your market.

In today’s new market, real estate marketing is a marriage between print and web marketing.  Often the first step is a highly targeted list for economical and effective mailings.

Four target lists that work:

1. Search MLS: Identify neighborhoods with high proportion of short sales and foreclosures by searching MLS.  Search specific fields for “REO” or “bank-owned” if your MLS supports that search.  Also, search comments field for “subject to bank approval” or “possible/potential/approved short sale” and other keywords to target high concentration neighborhoods.
2. Predictive Micro Markets: In many areas there are pockets of new construction that were purchased 3-5 years ago (2006-2004) that produce high concentrations of prospects.  Rainmaker real estate agents look for areas where first-time buyers and/or aggressive financing (zero down, option arms, interest only, etc.) were prevalent.  Searches by purchase price, by purchase date and by year built are effective.
3. Obtain Lists: Arrange with your local title company to e-mail you foreclosure filings regularly.  Consider buying the pre-foreclosure (Notice of Default) lists or scrubbed prospects by phone from services, such as RealtyTrac.
4. Past Clients: Many Rainmaker real estate agents discover a large number of there past clients and sphere homeowners need information about short sales, especially if prices have dropped significantly.  Headline: “Curious about short sales?  We can help.”

Remember, your concentrated mailings will also produce “equity sellers” as well as short sales.  Targeted mailings are a great way to earn more commissions with less effort!

1. Other Agents: Many agents don’t want to deal with short sales.  As a short sale specialist, ideally with the CDPE designation, you can say: “We know what we are doing…and we pay referral fees.”
2. Multiple Options: Give your referral sources several options to earn a fee. You could: 1) pay an upfront fee; 2) offer a regular referral upon closing (percentage); or, 3) act as a mitigation negotiator (billed at hourly rate).
3. Cultivate Birddogs: Contact attorneys or title officers to exchange referrals on a reciprocal basis.  Rainmaker real estate agents ask, “If I get a short sale, will you look at the title for me to check for liens?”
4. Back Fence: In neighborhoods where many owners are underwater, one of the largest referral sources is neighbors talking to neighbors.  Close every conversation with the question: “Do you know anyone who is facing foreclosure that you can help?”

Short sales – like divorces – are going to be with us for years to come.  Learn how to generate those leads to grow your business.

Marketing Tips for Short Sale Listings

Consumer-centric marketing was especially critical for capturing short sale listings.  Here are several factors that drive this focus:

• Many homeowners don’t know they are “underwater” because they think their home is worth more than it is.
• Many owners who are at the end of their rope don’t know about a short sale option, or the difference between a short sale and foreclosure.
• Many prospective short sellers are private and guarded because they are embarrassed, hurt, scared, humiliated.
• Many prospects begin with information gathering: 1) to gain trust in the real estate agent, and, 2) to educate himself or herself before meeting with an agent.
• Rainmakers who specialize in distressed properties appreciate informed clients because working with an educated consumer greatly reduces counseling time and problems later in the process.
• High-value information is key to incubating short sale inquiries until they are ready to step forward for a personal appointment.

At the first appointment, when the prospect learns they will be “leaving money on the table” if they don’t do a short sale, Rainmaker real estate agents ask if it is “still important for them to sell.”   Commitment at the front end avoids hassles later.

What have your found that is effective to earn the trust of short sale homeowners?

What she discovered is local search doesn’t work well for listing specialists of distressed properties. Kathleen used Google Keyword Toolthat allows e-marketers to research popular search keywords to match a marketing goal. It turns out, global searches don’t generate local sellers. Yet, local searches are miniscule…or non-existent. (In fact, it appears online search is better suited to generate buyers of bank-owned homes.) When Kathleen searched using localized keywords (geographic modifier), such as “Orlando FL avoid foreclosure,” the search keyword was not recently used whatsoever by online seekers. Here is Kathleen’s article.

Judging from Rainmakers I’ve interviewed recently, if you want to generate sellers who are facing foreclosure the most effective ways include:

• Use local targeted offline marketing such as direct mail to Notice of Default owners, local print advertising, signage and publicity offering help for families facing foreclosure.

• Feature local microsites (one page websites built around a lead-capture form) specifically designed for homeowners worried about foreclosure.

• Promote targeted free reports, either printed or electronic, that offer information about the foreclosure process — and how to avoid ruining your credit if you can’t save your home.

• Cultivate word of mouth among neighbors in an area where many distressed properties are for sale. (“They talk to each other,” is the theme I hear from Rainmakers.)

• Generate traffic from craigslist or Backpage or blogging (see: “Low-Cost Marketing: Effective “Cross-Linking” Strategy Generates Short Sale Listings“) to drive traffic to a page/section of your website that offers articles about selling short — and features response forms “to find out if you qualify” as a short sale.

• Work with lenders who need field inspections (see: “Mike Hyles’ Short Sale Lead Generation Strategies“) to determine if defaulting borrowers still occupy the home (those who still live there are prime prospects for a short sale).

How to generate leads for short sales is evolving. What is the single-most effective technique you’ve used to generate short sale leads? Join the conversation!

Zac sat in on a popular workshop by national technology trainer Allen F. Hainge, and passed along a greeting.  Not to miss a blog opportunity, I asked Zac what he’s doing to generate short sale listings.  Zac BlackBerried back: “I have a short sale web page attached to my Real Pro web site as well as weekly blogging. Those that find me are coming thru Google.”  Knowing Zac, there was more to the story.  Next morning I had a note from Zac’s Marketing Manager, Jenny Pittam, sharing one of the most effective “cross linking” marketing campaigns using online and offline tools I’ve seen.  That’s when things got interesting.

Zac’s Results Speak For Themselves

In the first 6 months of 2009, Zac and his team have taken 12 short sale listings ($2,761,580 combined listing prices), 6 of those are pending lender approval of buyer offers at this time.  If (and when) all 12 listings close (positive thinking, short sales being short sales) Zac’s GCI from his short sale listing campaign will be about $82,855.  In addition, Zac has referred 4 sellers to out-of-his-area Realtors that have the potential for about $6,000 in referral income.  No wonder Zac is a RE/MAX Hall of Fame and Atlanta Board of Realtors Circle of Legends winner.

Short Sale Listings Campaign

Here’s how Zac and Jenny generate short sale listings.  First, they start with two principal websites: www.Zac.biz (Best Image) which is also reached from www.MLSInAtlanta.com and www.ZacSellsAtlanta.com (RealPro). Zac’s blog at blog.Zac.biz is hosted on the RealPro site.  As for short sales Jenny wrote, “the single most effective technique we use to generate short sale listing leads is utilizing our RealPro short sales stealth site at www.ShortSalesInAtlanta.com, which is also reached through the domain of www.SavingFamiliesFromForeclosure.com.”

Building Traffic One Cross-Link At A Time

Next, Zac captures traffic from his Zac.biz home page using an “Avoid Foreclosure” button – placed in the paramount upper-left corner position – to a page featuring a cross link to the SavingFamiliesFromForeclosure.com stealth site. In addition, Zac blogs regularly on short sale subjects such as:

• “Becoming a Certified Distressed Property Expert” (June 15),
• “What are the 7 most common short sale pitfalls?” (April 23),
• “Foreclosure Prevention Community Workshop brought to you by the zac team” (April 15),
• “What are the most common mistakes that can prevent a short sale from happening?” (April 13),
• “How do I qualify for a financial hardship?” (April 10).

All the blogging and web content and cross-linked domains earns high placement in Google.

Advertising-Driven Traffic from craigslist

Into this funnel Zac drives more traffic with ads on craigslist that generate response for his Free Reports, which are printed reports sent to prospects by postal mail to get an accurate and all-important property address.

Report titles include:

• “Three Must-Have Qualifications for a Short Sale Homeowner,”
• “Foreclosure vs. Short Sale: Homeowner Consequences,” and
• “Options and Solutions for Homeowners in Foreclosure.”

Other craigslist ads feature a “We can help” theme or “Foreclosure Prevention Seminar” held in Zac’s office.  Zac and Jenny write, “The cross-linking between our homepage, our blog, and craigslist have all helped people find us through Google.”

Here’s the full text from another craigslist ad:

Worried about the possibility of foreclosure? There are options!

The zac team @ RE/MAX Greater Atlanta, American Real Estate University, foreclosure.com, and the Credit Law Group are presenting a special community workshop this Saturday, May 16th at 10 a.m. to explain the ins-and-outs of your mortgage company, how to seek help, and ultimately, how to avoid the damage that a foreclosure can cause to your family. You can read more here at www.SavingFamiliesFromForeclosure.com and sign-up online. You can also RSVP directly to Jenny by responding to this posting, emailing jenny@zac.biz, or calling 404.564.7250.

We are here to help and look forward to seeing our neighbors on Saturday. If you or someone you know cannot make it to this event, we will be hosting workshops on the third Saturday of every month.

The workshop will take place in our office located at 1057 Ponce de Leon Avenue, Atlanta, 30306.

To add even more low-cost buzz, Zac includes the following P.S in his team e-mail signature:

P.S. Helping families avoid foreclosure while saving much of their credit is what I’m certified to do. Is someone you care about struggling to make their mortgage payments or needing to sell their home but can’t because it’s worth less than they paid? There are Options! Please visit www.SavingFamiliesFromForeclosure.com for a confidential consultation.

Nice work, Zac.  Cross-linking truly pays off.

Join the conversation!  What are you doing to generate short sale listings in the new market?

Mike Hyles (www.Hyles.com ) with RE/MAX 1st Choice in Pleasanton, California, for years is consistently ranked in the Top 10 of all RE/MAX agents internationally. Mike remembers the early 1990’s when he worked lots of short sales in the San Francisco/East Bay market. In 2008 Mike closed 31 bank-owned listings for IndyMac. In 2009 Mike has sharpened his lead generation strategies to capture more short sale listings. At the recent RE/MAX annual convention in Las Vegas he shared his strategies with RealEstateRainmaker.com.

Mike’s first step is to focus on a specific type of short sale. In his market he targets owners who purchased between 2002-2005. “Chances are these owners could short sale and get about what they originally paid for the property,” Mike said. “They are good candidates for lender-approval of a short sale.”

How does Mike target the short sale listing market?

Print Ads:

A sample headline is “If you purchased between 2002-2005, and you are unable to make your payments, call me.” Mike avoids including the term “short sale” in his ads because he finds prospects are confused with all the lingo in the news: short sales, loss mitigation, loan modification, foreclosure, deed in lieu of foreclosure, etc., etc. “Keep it simple,” Mike said.

Direct Mail:

Mike sends jumbo postcards, not envelopes. “You go into these homes and you see a stack of unopened envelopes. Postcards get noticed, and they cost less to mail,” Mike said. “Owners are pinched but they stuck their heads in the sand, hoping foreclosure would not happen to them.” Postcards are concise. Mike sends a series of cards, not just one or two cards. (Learn more about Rainmaker Postcards for Short Sales ).

Mailing List:

Mike works for several lenders who hire his staff to determine if a delinquent owner still occupies the home – before a Notice of Default action is filed. The addresses make an ideal “Facing foreclosure?” mailing list. Mike also has his title company generate a list of purchasers from his target range of 2002-2005. Owners feeling pinched are so common in areas of Mike’s market; he has also had success with blanket area mailings. “This crisis affects every price range,” Mike said. “It affects everyone.”

Headlines:

One concept that makes Mike’s phone ring is a photo of a stretched dollar bill, and the headline: “If this is your situation, you have options. We can help. Do you want to find out what options are available? Call or e-mail me.” Most people e-mail, especially those that want to keep an initial arms length. Mike counsels the prospects about questions such as “Should I move out?,” “Should I stop making payments?,” “What is ‘cash for keys’?” Mike then drips e-mails and direct mails to these prospects on these topics until they are ready to list.

Broker Price Opinions:

Another source of leads is doing BPOs for lenders. Mike has gotten on the short list for several lenders who have borrowers that are late making payments. Although lenders pay a small fee, such as $45-$95 for a BPO, Mike learns which prospects are not yet officially in default. Lenders need to know the market value to evaluate their asset records, as well as determine how aggressively to press borrowers for payment.

Internet:

On Mike’s home page at www.Hyles.com he has posted a map that features “notice of default, short sales, bank owned properties.” These properties generate buyer prospects, as well as short-sale sellers who are investigating their options. “In our market most distressed properties are receiving multiple offers because the prices are such bargains,” Mike said.

Yellow Pages:

Another large source for short sale leads is Mike’s large ad in the Tri-Valley Yellow Pages (AT&T), the largest phone book in the area. The ad is big, colorful and dominates the “real estate” section. A large headline reads: “I represent short sales, real estate owned (REOs), and foreclosed properties." "Your ad will work if it stands out,” Mike said.

Final Word:

“The secret to being successful with short sales, get the most referrals from past clients, is to be honest, sincerely put the needs of the client first. Should they stay in the home? Try to sell it? Be honest. Let the people make the decision. Get personal. Let the client know you understand how they feel. I often tell the story of my own personal bankruptcy back in the 1980’s from a failed business venture. You will come out of this too, I say. This is only a financial problem. It won’t kill you. Take that approach and you’ll be successful. Have sympathy. Listen. Let them talk. There’s a lot of money to be made in short-sale listings – when you do it right.”

Thanks, Mike! What lead-generation strategies can you add to the conversation? I welcome your comments.