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Walter Sanford is an international speaker and author of 15 books for top-producing real estate salespeople. He has sold real estate for 28 years in Southern California, but has followed his heart to Kankakee, Il., where he runs a real estate speaking business and is one of the most-requested real estate trainers in the country. Visit him at booth #2206, Nov. 3-5, and hear him speak at the NATIONAL ASSOCIATION OF REALTORS® Annual Convention at 1 p.m. on Nov. 4, 2001. You can reach
him at waltersanford.com or at Sanford Systems & Strategies, 800/792-5837.
Want selling and marketing advice? Send your questions for Walter Sanford to salesclinic@realtors.org
Previously by Walter Sanford:
Income Ideas--Thinking Outside the Box
A Week in a Top Prospector's Life
| | Niche market
An Oft-Forgotten Prospect: Absentee Owners
Use direct mail to court out-of-town owner-buyers, a group that your competition probably won't be targeting.
BY WALTER SANFORD
When targeting prospects, it makes sense to correspond with a group that appreciates your help, needs you, and has a high propensity to sell real estate. In my market area, out-of-town property owners meet this description and represent an ignored opportunity. One of my favorite demographics, out-of-town owners fall outside my normal marketing and geographical presence, but also far away from the reach of the competition’s local marketing. It’s sometimes difficult to obtain a phone number or e-mail address for these prospects. Therefore, direct mail is your best initial contact option.
You can use tax billing records to track down these prospects’ addresses. Visit your local assessor’s office or search online to find these public records. Look for local bills sent to addresses outside your city limits. The tax records can also tell you a property’s type, so you can focus on the type of property you’re experienced with.
Your goal with direct mail is to create offers irresistible enough to generate a response. But what can you do that’s so irresistible? I’ve found the following services to be effective, yet inexpensive, ways to acquire clients.
1. Free 15-minute phone consultation with my CPA regarding 1031 Tax Deferred Exchanges--my future clients’ most probable mode of transfer.
2. Free digitized photographs of owners’ properties e-mailed to them as often as they request.
3. A free list of vendors that I’ve personally used or that come highly recommended. You might offer contact information for roofers, plumbers, electricians, lenders, or property inspectors.
4. Free rental management forms, including applications, pet agreements, delinquency notices, or other forms available through local or state apartment house associations. (Forms may vary slightly by area.)
5. A free consultation with a local management company on accounting practices and management and maintenance techniques.
6. A free phone CMA within 24 hours of request, provided for clients who answer some simple questions by phone or online.
7. A free list of properties fitting their investment parameters within the same geographic area as their current properties. Since they own in the area, and have already addressed any management challenges, maybe it’s time to acquire additional rental properties.
8. Free investment index analysis. Internal rates of return, gross rent multipliers, capital return indexes, appreciation rates, and other indices can be calculated with standard real estate investment software. Clients especially appreciate comparing the indices on competing properties.
9. Free 1031 exchange analysis, analyzing available options for potential up-leg purchases. I stress with potential buyers that up-leg requirements are meant to increase their depreciable base, cash flow, appreciation potential, and ease of management.
10. My own consultation on how to increase income and decrease expenses in running any real estate investment.
Including these offers in my lead generation direct mail resulted in my controlling way more than my share of out-of-town business. Offering these services before I ask for business gives me a leg up on my competition and establishes career-long relationships with owners.
For me, these relationships result in many referrals, repeat business, and kudos that were profitable and made me feel that I was offering a greatly needed service.
Ask Walter:
Q. Are there any good books about how to better penetrate the Hispanic real estate market? I am a Hispanic REALTOR® in San Antonio, Texas, and would like to do better in servicing the Hispanic community.
Nelson Torres
Century 21 Manor Realty
Universal City, Texas
A. Dear Nelson:
Great question, I don't know of a book on the subject, but let’s think together to write our own:
· Chapter One: Understanding Your Target Market. What do my Hispanic neighbors need that I can deliver? Look for common needs Hispanic customers in your area may share. For instance, do many extended families live together? If so, you might want to develop a specialty in large homes or duplexes.
· Chapter Two: Speaking Their Language. Does a language barrier present obstacles? In many cities with large Hispanic populations, you can hire translators to work on a per-job basis if you’re not fluent in Spanish. If you have Hispanic clients from more than one area, team up with another associate or an assistant from a different Spanish-speaking country to provide greater cultural diversity.
· Chapter Three: Delivering Notice of My Services. This involves many of the same tasks as targeting any market segment, such as researching demographics, telemarketing, and e-mail newsletters. However, you will probably want to add Spanish-language options. For instance, create both an English and Spanish version of your website and your newsletter, or hiring bilingual telemarketers. If there’s a large Spanish-speaking population in your area, you might also want to advertise your services in a Spanish-language newspaper or on Hispanic television channels.
· Chapter Four: Building a Database for Follow Up. Again, this step is similar to the strategies you’d use for any other personal marketing and prospecting. Consider creating a field where you can indicate if a customer has requested Spanish-language materials.
In many ways the needs of Hispanic homebuyers are no different than those of any other group. They still want great customer service, a good home at a good price, and a safe neighborhood. If you give your customers those things, they’ll come back to you regardless of their background.
Want selling and marketing advice? Send your questions for Walter Sanford to salesclinic@realtors.org | |
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