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This article was published on: 03/01/2007

COVER FEATURE: The List Issue 2007

"Remember, you only have to succeed the last time."
— Brian Tracy, business consultant and author

PROSPECTING



5 inroads to FSBOs

Home owners who use a real estate professional tend to sell their homes for about 16 percent more than those who don’t use one, according to 2005 statistics from the NATIONAL ASSOCIATION OF REALTORSŪ. And that’s a great way to show your value once you find FSBOs.

1. Use a team approach. Form a FSBO referral network, composed of a lender, a home inspector, an attorney, handymen, and any other professionals you believe appropriate. The team can refer unrepresented sellers to other members of the group and help identify FSBOs you might not have otherwise come across. Also, to find FSBOs, check out FSBO Web sites, particularly those that offer free listings, and PennySaver style magazines.

2. Become a valuable resource. Offer FSBOs advice on the home selling process and become an asset and resource to them so that they’ll turn to you whenever they need help. REALTORŪ Magazine Online offers printable Handouts for Consumers, with tips ranging from marketing a home to generating buyers. In reaching out to FSBOs, be careful of running afoul of phone antisolicitation laws and the CAN-SPAM Act. You can contact FSBOs by phone only if you have a buyer who’s interested in their property or they aren’t on the national do-not-call list. And you can e-mail them as long as you adhere to the rules for commercial e-mail. Check with your state for specific guidelines.

3. Earn a commission in other ways. The more services you provide, the more business you earn regardless of whether you get the listing. If FSBOs are relocating, offer to refer them to a salesperson in their new town and collect a referral fee from that salesperson. FSBOs may also want your representation when they buy a new home, or they may be willing to pay you as a consultant for certain phases in the selling process. In addition, FSBOs’ acquaintances or family, or even their buyer who needs to sell first, can be a source of leads.

4. Don’t make promises you can’t keep. Don’t try to get the listing with bold promises that you can sell their property quickly or that you have a buyer lined up when you don’t. Build their trust and show them you’re different from practitioners who go for the hard sell.

5. Be persistent. Continue to make contact with FSBOs even when you don’t generate response from them at the beginning. Keep a database of FSBOs you contact; that way, you can easily monitor their properties’ status and tailor your message to how long those properties have been on the market. For example, if a property has been on the market for four weeks, you might send a letter saying, “Some of the properties that were exclusively listed by me at about the same time you offered your property for sale are now sold and in escrow.” Then offer them contact information on some of the professionals in your network who can assist them as they sell their home. That shows them you will continue to be a resource and are available if or when they need help. Soon they might be the ones contacting you.

Source: Walter S. Sanford, Sanford Systems and Strategies (www.waltersanford.com), Kankakee, Ill., author of Expert Lead Generation Tool Kit (Sanford Systems, 2005)

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5 tips to a picture perfect head shot

A strong head shot on your business card or Web site can help bring you more business; a bad photo can turn off potential customers. Photographer Scott Southall, owner of OC Portraits in Orange County, Calif., says a head shot should convey trust, professionalism, and confidence.
Here’s how:

1. Keep your head shot current. Your client may think you’re dishonest if your materials feature a photo of you looking 20 years younger and 20 pounds slimmer. Update your photo whenever your appearance changes, probably about every three years.

2. Think business portrait, not glamour shot. Don’t go overboard with digital plastic surgery to remove wrinkles and gray hairs. Your photo should be a true representation of yourself. Be real, not phony.

3. Find the right light and frame. Lighting and framing can make or break a photo. For example, light striking your face predominantly from the left side can subliminally convey trust; a tight crop usually creates intimacy, making you look more approachable; and a smile along with smiling eyes conveys genuineness. A good photographer can recommend proper lighting, framing, backgrounds, and poses.

4. Dress appropriately. Your target market will help determine proper attire. If you’re in a coastal recreational market, a Bahamas shirt and casual dress may be appropriate, whereas a more formal market may call for a suit and tie. Regardless, don’t let your wardrobe, hairstyle, or makeup negatively distract prospects.

5. Choose the right photographer. Find a photographer who realizes that getting a good head shot requires more than snapping five frames. The person should be tuned in to you and what you do, make you feel comfortable, and be honest in telling you when a smile looks more like a smirk.

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CAN-SPAM: What the law requires

The CAN-SPAM (Controlling the Assault of Non-Solicited Pornography and Marketing) Act went into effect in 2004, setting requirements for any e-mail that advertises or promotes a commercial product or service, including Web site content. Here are four key requirements for commercial e-mails:
  • Accurate header information. Your e-mail's “To” and “From” fields, as well as the originating domain name and e-mail address, must be accurate and identify the person who initiated the e-mail.
  • No deceptive subject lines. The subject line can’t mislead the recipient about the content or subject matter of the message. And your message must contain clear notice that the content is an advertisement or solicitation and that the recipient can opt out of receiving more commercial e-mail from you.
  • Easy opt-out method. You must provide a return e-mail address or another Internet-based response mechanism that allows recipients to ask you not to send future e-mail messages. When you receive an opt-out request, the law gives you 10 business days to stop sending e-mail to the requester’s e-mail address.
  • A valid physical mailing address.

Source: Federal Trade Commission (www.FTC.gov)

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Add zip to your e-newsletter

Your customers’ in-boxes are packed with e-mail from coworkers, friends, and advertisers. So how do you make sure your e-newsletter gets noticed and read? To find out, we consulted marketing expert Michael Fleischner, founder of Marketing Scoop LLC (MarketingScoop.com) in Robbinsville, N.J. He offers these tips:
  • Use snappy subject lines. The subject line is often the only thing your prospects see before they choose whether to read or delete your e-newsletter. Make it short no more than eight words and consistently start the subject line the same way each time. For example, ABC Newsletter: [catchy headline here].
  • Customize your content. For your newsletter to be valuable to recipients, the content must be highly relevant to their unique situation. If your niche is historic homes, for example, segment your audience into buyers and sellers, then send each group tips and articles specific to them.
  • Make it a quick read. Traditional newsletters may have articles that fill an entire page, but e-newsletters require a different approach. Consumers want to scan their e-mail in seconds. So use short paragraphs and bulleted lists. Keep headlines short and to the point. If you feel that a topic deserves more depth, provide links to more information.
  • Stick to a schedule. When customers sign up for the e-newsletter, let them know how often it will arrive in their in-boxes. Then keep your promise. They’ll be more likely to recognize your e-mail and open it if they receive it on a regular basis rather than just a few times per year.
  • Ask for feedback. Polls and surveys are great ways to get readers to interact with your e-newsletter. At the very least, ask for feedback on the e-newsletter and solicit ideas for the next issue.
  • Include stories from peers. People like to read about their peers’ experiences. Include brief interviews with recent clients. Ask such questions as, How did you know when you found the right home? What advice would you give other first-time buyers?
  • Test everything. Break up your list of recipients into two groups, A and B, and then experiment with different headlines and formats to see what your audience responds to best. Try different subject lines, types of content, design, or anything else you think could impact readership.
  • Stay out of spam traps. Certain words and phrases in your e-mail may trigger spam filters, which means your e-newsletter will go straight into the junk mail bin. Some examples: “financial freedom,” “money-back guarantee,” “offer expires,” “work at home,” “pennies a day,” and “no catch.”
  • Follow the law. All commercial e-mailers must follow the rules set out in the federal CAN-SPAM Act. (For a quick rundown of those important rules, see “CAN-SPAM: What the law requires.”)

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Hold a seminar: 4 great topics

Meet new prospects and establish yourself as a real estate expert by holding informational real estate seminars. These hot topics are sure to attract a crowd:

1. Is now the right time to buy?
Why? After years of rapid appreciation, followed by a slowdown in some markets, buyers may be worried about the timing of a real estate investment. Let buyers know that with more homes on the market, they have increased negotiating power.
Ideas: Prepare a presentation using statistics from your MLS to educate potential buyers on current market conditions. Explain how they can benefit from increased inventory (if that’s the case in your market), and why they should work with a real estate professional who can help structure the best deal. Get talking points from NAR’s recent “Buy Now” campaign. For example, mortgage rates are comparable to 40 year lows, the average home value increased 88 percent over the past decade.

2. Moving with pets
Why? People love their pets! An estimated 63 percent of all U.S. households have at least one pet, according to the 2005/2006 National Pet Owners Survey, released by the American Pet Product Manufacturers Association. That means the odds are good that pet owners are a sizable share of your prospects.
Ideas: Partner with the local humane society, a vet, or a pet shop owner to talk about handling a move with pets. Cover such topics as how to make your dog or cat less anxious on moving day, the importance of registering your pet under your new address, and finding animal-friendly hotels. As an extra draw, plan the seminar in a place that allows pets; that way, pets and their humans can mingle. Don’t forget to advertise that pets are welcome to attend.

3. What to know before buying a condo
Why? Twenty percent of all buyers purchased a condo or town house, according to the NATIONAL ASSOCIATION OF REALTORSŪ 2006 Profile of Home Buyers and Sellers. The percentage is even higher 27 percent for first-time buyers.
Ideas: There are countless topics to discuss, starting with the basics: assessments, parking, home owners associations, and the conveniences and drawbacks of living in a multifamily building. Invite a real estate lawyer to speak about bylaws, and ask clients or acquaintances who’ve recently moved into a condo to share their experiences. Be prepared with handouts on mortgages and other home buying basics.

4. Boost your home’s appeal on a budget
Why? Home owners are fascinated with learning how to make their home look better and increase in value. Now that the real estate market has softened, sellers need help positioning their home and engaging serious buyers.
Ideas: Bring in a staging expert (check www.stagedhomes.com for a listing of staging professionals) to offer simple tips for preparing a home for sale. (Buyers might be interested in the decorating pointers, too.) Or, if you have ample experience, share your own tips. A slide show of before-and-after photos will liven up the presentation. Create a checklist for attendees to take home and encourage them to take the staging quiz at REALTORŪ Magazine Online.

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8 ways to get your name in the newspaper

Seasoned newspaper editor Joan Stewart knows what it takes to get your name in the paper without charge. In fact, she’s made a second career of it. Her 12-year-old company, The Publicity Hound, in Port Washington, Wis., helps businesses of all sizes get noticed by the media. She offers these tips:

1. Establish a rapport. Make a list of all newspapers in your area and get the names of reporters who write about real estate. Simply call or e-mail those journalists and offer yourself as a source for their articles, whether it’s for commentary or background. Ask them, “How can I help you?”

2. Emphasize your expertise. Do you know how to stage homes? Are you an expert on rental properties? Let reporters know about it. You’ll be the person they call when they’re on deadline and need a quote from an expert.

3. Pitch story ideas even if they don’t involve you. As a real estate practitioner, you’re tuned in to the local buzz. If you hear about a unique new development or spot an interesting trend, let your new friend at the newspaper know about it. Reporters appreciate story tips. By pitching worthwhile article ideas, you’ll build trust.

4. Don’t appear self serving. Say you’ve been playing a major role in a local organization’s food drive. It wouldn’t hurt to get some media coverage. But rather than pitch the story yourself, suggest that the nonprofit group approach the newspaper. Reporters will be more likely to pursue a story if it’s not coming from a company that’s looking for the spotlight.

5. Never say “no comment.” The phrase is abrasive and makes it look as if you had something to hide. From a reporter’s perspective, it shows you’re not willing to be cooperative. You can’t run for cover when controversy arises and then expect media coverage when everything is going your way.

6. Create photo opportunities. A great photo can move a story from the back of a newspaper to the front page. But we’re not talking about ribbon cuttings. Remember the three things that make a great newspaper photo: people, colors, and action. Hire a magician for the opening of a new brokerage office and tie it in with a theme, “Let us create magic for you.” Or to get noticed at a food drive, have people from your company pack boxes with food rather than pose with a pile of donations.

7. Be accessible. Let reporters know you’ll be available for their calls, even if it’s after regular business hours. Make sure they know how to reach you when you’re not at your office.

8. Gear press releases to consumers. Even if you plan to submit the release to local media, you’ll want to write it with consumers as your audience. This will demonstrate to the media that you understand the value your news would have for their audience. This is also important to keep in mind if you archive your press releases online, where any Web surfer (aka prospect) may stumble upon them.

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5 Web sites that help you get connected online

Boost your network by connecting with other practitioners and professionals online. It’s a great way to get referrals and advice. Here are a few Web sites that can get you networking fast:
  • Active Rain (http://activerain.com): A free networking site for real estate professionals where members can share ideas, gain referrals, and access or create blogs. Members are categorized by geographic location.
  • Ecademy (www.ecademy.com): A social network of more than 100,000 businesspeople worldwide for exchanging ideas, building contacts, and obtaining advice from others in their field. You can also rate other members on their networking skills. The site offers a free 14 day trial, but after that you must choose between a limited basic membership or select one of two advanced memberships for a fee.
  • LinkedIn (www.linkedin.com): An online community of 9 million business professionals. Join at no charge by creating a profile, which helps you find and be found by former colleagues, clients, and partners. You can then invite others to become part of your online network, but they have to accept your electronic invitation to be added. Although basic accounts are free, paid subscribers have access to three levels of additional features.
  • Ryze.com (www.ryze.com): With more than 250,000 members worldwide, this site allows business professionals to join special networks related to their industry, interests, or geographic location. You can also set up your own network Web page and invite others to post comments. Basic accounts are free, and certain features are available for a small fee.
  • WannaNetwork (www.wannanetwork.com): A free network for real estate professionals where you can create a profile of your background that’s then used to connect with others. You can also post listings.

Sources: Brian Hilliard, Agito Consulting (http://agitoconsulting.com), Atlanta, and NAR technology reports

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Networking no-no’s
  • Don’t give out your business card right away. Some practitioners hand out their card before the people they’re meeting even introduce themselves.
  • Don’t feel you have to meet everyone at an event. Shoot for five or six interactions at a typical two hour event, which will allow more time to build lasting connections.
  • Don’t be inclined to attend every networking event. Aim for four per month, which could help you meet about 20 new people each month. That’ll keep your network to a manageable number, so you won’t feel overwhelmed about following up.
  • Don’t expect results right away. You’re not likely to make a best friend and obtain immediate new business by attending a two-hour networking event. Relationships require nurturing. Follow up with the people you meet, such as inviting them to coffee.

Source: Brian Hilliard, Agito Consulting (http://agitoconsulting.com), Atlanta

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A generation worth your attention

With an estimated 78 million baby boomers in the United States, this generation most likely makes up a good portion of your client base. By learning more about this fascinating demographic, you can tailor your service to suit their needs and wants. Here’s a look at findings from NAR’s 2006 research report Baby Boomers and Real Estate: Today and Tomorrow, based on a survey of 1,969 adults born between 1946 and 1964.

Top 5 things baby boomer buyers want from you
1. Represent my interests and coordinate with other parties involved in the process (23%)
2. Manage the closing process from start to finish (14%)
3. Explain all contracts, forms, and agreements (14%)
4. Negotiate on my behalf (11%)
5. Provide advice on critical issues throughout the process (7%)

Top 5 things baby boomer sellers want from you
1. Help establish the right asking price for my home (17%)
2. Represent my interests and coordinate with other parties involved in the process (14%)
3. Show my home to potential buyers (12%)
4. Explain all contracts, forms, and agreements (8%)Manage the closing process from start to finish (8%)Screen and prequalify buyers (8%)Negotiate on my behalf (8%)
5. Advertise my home in the media and on the Internet (7%)

Common misconceptions about baby boomers
  • They’re rich. When describing their financial situation, 54 percent of respondents said they were either “just making ends meet” or “having financial difficulty”; 4 percent described themselves as “well off”; and 43 percent said they were “comfortable.” (Percentages total more than 100 percent due to rounding.)
  • They’re self-absorbed. It’s been called the “me” generation, but baby boomers clearly think of others: 42 percent expected to pay at least some college costs for kids or grandkids; 35 percent said it’s important to leave a significant sum of money to family; 22 percent expected to help kids or grandkids with a home down payment; and 17 percent said it’s important to leave a significant amount of money to charities.
  • They have lots of buying and selling experience. Most baby boomers have at least some experience in the real estate market; 78 percent are home owners. However, the majority haven’t purchased a home in 11 years, and a hefty 48 percent of home owners have never put their house up for sale.
  • They’re old. Watch whom you’re calling old! The U.S. Census Bureau estimates that nearly half 47 percent of baby boomers are in their 40s, and 26 percent are 50 to 54 years old. Just 27 percent of baby boomers are 55 to 60 years old, the age range in which many workers start thinking about retirement.

What do they want to buy?
Baby boomers who said they were extremely or very likely to purchase real estate in the next year indicated they would like to purchase the following types of property. Respondents could choose more than one type.
  • Primary residence (66%)
  • Commercial property (14%)
  • Land (26%)
  • Vacation home or seasonally occupied home (15%)
  • Rental property (19%)

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Online Exclusive List
Best places to raise a family

Where are the best places in the United States for kids and adults? Author Bert Sperling (founder of www.bestplaces.net) and researcher Peter Sander teamed up in 2006 to answer that question. They analyzed an array of data, including cost of living, health and safety, and education, to come up with a list of the top 100. On the basis of their research, they also categorized some of the 100 cities by lifestyle. (Cities are listed alphabetically.)

Best for nature lovers:
    Bellingham, Wash. Located between Seattle and Vancouver, this small city boasts scenic views, a large harbor, miles of hiking trails, and nearby ski areas.

    Eugene, Ore. Tree lined downtown streets, waterfront parks, and plentiful bike trails make this college town an ideal spot to enjoy the great outdoors.

    Farragut, Tenn. A short drive from hilly Knoxville, residents of this suburb enjoy Fort Loudon Lake, the Tennessee River, and scenic mountains.

    Gainesville, Fla. Southern pine forests, state parks, and nature preserves draw outdoor enthusiasts to this college town in north central Florida.

    Mount Vernon, Wash. Like to fish, hike, ski, camp, and boat? If yes, you may want to move to this small town north of Seattle, near calm Puget Sound.

    Norwood, N.J. Woods, lakes, and open spaces are accessible in this suburban town just about 20 miles northwest of midtown Manhattan.

    Olympia, Wash. Mild summers and winters give residents of Washington’s capital city favorable weather in which to enjoy the more than 50 city, state, and national parks located within an hour’s drive.

    Vancouver-Camas, Wash. National forests stretch across the area north of Camas, and to the east you get spectacular views of the Cascade Mountains.

    Waukesha, Wis. Thanks in part to the many nearby lakes, it’s easy to stay busy with outdoor activities and water sports in this suburb about 20 miles west of Milwaukee.

Best for history buffs:
    Arden-Brandywine, Del. History lovers settle here to enjoy the assortment of museums and historic sites that dot the community, including a renovated 1871 theater in nearby Wilmington.

    Charlottesville, Va. Thomas Jefferson chose this town for his famous home Monticello and the University of Virginia, which he founded in 1825.

    Chelmsford, Mass. Head to the town square for dining and shopping, or take a short drive to the nearby towns of Lowell and Lexington for historical parks and museums.

    Franklin, Tenn. A well preserved Civil War battlefield and old plantation sites are sources of pride for this city, which is 20 miles south of downtown Nashville.

    Hixson, Tenn. This quiet, middle class suburb on the Tennessee River is 8 miles north of Chattanooga, surrounded by Civil War history. Wooded mountains and bluffs set the scene.

    Oak Park, Ill. Frank Lloyd Wright masterpieces including his own home and studio and the birthplace home of Ernest Hemingway give this Chicago suburb historical credentials.

    Richmond-Tuckahoe, Va. The quiet capital city has many important sites to see, from the Governor’s Mansion to the Museum of the Confederacy.

    St. Charles, Mo. It’s the second oldest city west of the Mississippi, with a historical downtown brimming with pre-1850 buildings.

    Winchester, Va. On the north end of the Shenandoah Valley, this town could be the setting of any Civil War or 19th-century period film. Brick and stone streets, old buildings, and period homes abound.

    York, Pa. Parts of this small city look as they did 200 years ago. A revitalized downtown includes some new buildings but retains a strong historical character.
Source: Best Places to Raise Your Family: The Top 100 Affordable Communities in the U.S., by Bert Sperling and Peter Sander (Wiley, 2006).

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Online Exclusive List
5 sources for prospects

Gain referrals and clients by being a joiner. Get involved with:

1. Business organizations. Join your local chamber of commerce or a business association to tap into the business community in your area. Many practitioners sign up for chambers of commerce, which offer opportunities to network at a countywide level, but you might also look on the smaller scale, such as economic alliance groups or business associations, which also allow you to meet frequently with business owners.

2. Community clubs or organizations. Depending on your hobby and interests, join a community group, such as a bicycle or car club, a bowling or softball league, or a religious congregation.

3. Service clubs or charities. Service-oriented groups such as Rotary, Kiwanis, or Lions clubs get you involved in your community by working on projects side by side with local residents. Or volunteer directly with charities. Read about the contributions REALTORŪ Magazine’s Good Neighbor Award winners are making in their communities around the country.

4. Neighborhood councils. These government or nongovernmental bodies are in charge of handling neighborhood problems as they arise, and they may find it helpful to have someone with expertise in real estate join the group.

5. Real estate groups. Sign up for industry organizations the Asian Real Estate Association of America, the National Association of Real Estate Brokers, the National Association of Hispanic Real Estate Professionals or referral groups such as BNI to swap ideas and leads. BNI (www.bni.com) offers opportunities for business professionals, including real estate practitioners, to meet and expand their network of referrals.

Source: Wendy Furth, ABRŪ, CIPS, RE/MAX Olson & Associates, Northridge, Calif., and Howard Brinton, CEO of Star Power Systems (www.gostarpower.com)

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