Learn Short Sale Strategies From Real Estate Vets

Although the media reports gloom and doom for the real estate and banking market I am optimistic about the future of our industry. Working at BGS3 provides me with a unique perspective on the current market, its challenges, and what it will take to rebuild the economy. At the risk of sounding naïve, I believe a good old-fashioned pep talk on hard work—like the ones dad used to give us growing up—is in order for all those involved in short sales and distressed homeowner specializations. The time is now to be proactive and learn the “old ways” of Real Estate 101, taught by the 20-30 year real estate veterans you rub shoulders with on a daily basis. These real estate sages have not stayed in the game as long as they have without their ability to network, market and develop new and better ways to serve their customers. Glimpses of this kind of work ethic are creeping back into the industry as stories of agents knocking door to door in distressed neighborhoods to find homeowners in need, networking to establish themselves as the premier short sale expert in the community and seeking alternative ways to generate leads begin to surface. These strategies have been around for ages. Ask your office veterans or, better yet, watch them do it. Following their example will help all of us adapt to today’s market and stake our claim in the direction of progress and change.

Program 3648 & BGS3 Create Short Sale Forum

Anyone involved in real estate in today’s market has come across the opportunity to represent either a buyer or a seller looking to purchase or list a distressed property. The National Association of Realtors (NAR) released a statement a couple of weeks ago saying that nearly one-third of all home sales over the past few months involved a foreclosure or a short sale. First American Core Logic reports more than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, were in negative equity position as of June 30, 2009.
The demand for real estate agents with experience handling distressed property transactions is impossible to ignore. Thousands of agents are doing their best to become better educated on foreclosures and short sales by seeking distressed property certification programs, NAR sponsored designations, and short sale processors to handle a higher volume of listings. Most of the programs I have investigated provide excellent value and will increase your relevance as a reliable source of information in your respective community.
BGS3 has received an overwhelming response over the past few weeks from real estate agents registering for webinars on “How to Expedite Short Sales.” The webinar is a five-part series presented free of charge to all attendees by Program 3648. Program 3648 is a nationwide initiative created by BGS3 last year to inform homeowners of their rights and options when facing foreclosure. The first 15 minutes of each presentation is purely educational, while the last 45 minutes of each forum is dedicated to answering each attendee’s specific short sale questions.
The first few weeks of presentations showed signs that real estate agents working with distressed properties are thirsty for knowledge. The webinar is designed to create an outlet for agents who need information; plug in, receive information. If you are interested in attending the presentations, please send a request to blog@bgs3.com to have registration information sent your way. Agents from all disciplines, certifications and designations are welcome.

Converting Short Sale Home Appointments

As additional resources come available in your area to generate more leads, your ability to convert home appointments into listings will be your ultimate measure of success. Are you curious as to how other agents are approaching their home visits? How are the successful agents converting the appointment into a listing? Each newsletter that follows will feature comments and articles from program members who have captured the Program 3648 vision and are using it to help as many homeowners as they can in their respective areas. I would like you to read a comment from one of these program members who has gradually turned into a companywide standout. He responded to the question, “What makes your home appointments so successful?” and this was his response:

“…I never schedule the appointments. They are handled by a non-BGS3 person. This way she is not able to answer any questions (over the phone). We agents like to talk too much. She and I make a calendar and we communicate my hours to work with the incoming appointments. I never talk to the prospect until we meet at their home. Second, I can't think real estate. I have to believe we can offer something that they have never heard of: the short sale. My first question to the homeowner is, ‘What has the bank done to help you?’ Usually, they have not tried with the bank and we are the only ones that they have had a chance to even talk to about their problem. Then I ask what they have considered to do to fix their situation. I also explain foreclosure and bankruptcy. There are some that are not willing to be helped and I feel sorry for them. I try to tell them that I am a friend trying to help. Most people want answers and that is our purpose.” – Mark T., Coldwell Banker, KY

Mark’s comments should be applied in each of your home visits as you too do what’s best for the homeowner and be a “friend.” We all feel sorry for the homeowners who are unwilling to act in such a time-sensitive situation; however, they will remember you for your kindness and willingness to help. Professionalism, honesty, and a genuine approach will make you memorable and could possibly turn into valued referrals or other assistance in the future.

Actively Seeking Alternative Lead Sources

New properties are going into foreclosure every month at an alarming rate. Despite the frequent news of government help and assistance, at any given time approximately 2% - 5% of all mortgages in America are in default. The amount of distressed seller leads (DSLs) BGS3 receives increases daily however there are many others that are never reached who are waiting to be found. The daily pursuit of multiple lead streams plays an integral part in reaching as many distressed sellers as possible in your area. Are you relying on a single form of marketing to gather DSLs? If you are like most successful business owners, you know never to put all of your eggs in one basket!

If one is to be successful in the short sale/ real estate business, the ability to incorporate diversified marketing strategies and create multiple lead streams is imperative. BGS3 provides one lead source to its partners of homeowners who are 30 days, 60 days, and 90 days late on their mortgage payments. Using the leads provided by BGS3 can supplement your short sale business with more home appointments, but relying solely on these leads as your only lead source is not recommended. Are there other leads you can tap into besides your monthly DSLs? Yes! To get your minds thinking about some possible avenues, I would like to present a few marketing ideas that are working for me.

I hope you are already taking advantage of the lis pendens leads at your county courthouse. They are free, plentiful, and very lucrative if used properly. I have been very successful with newspaper ads offering help and information on “Three Things Your Lender Doesn’t Want You to Know,” and a variety of other titles. Have you thought about advertising in the Yellow Pages in the Foreclosure or Bankruptcy sections? I am still getting phone calls on an ad I placed in the Yellow Pages two years ago! Does your email signature say that you are a Certified Program 3648 Representative? Your clients need to know where you specialize!

I am more than willing to take your phone calls throughout the week to assist you as you experiment with these alternative lead source options. If you would like additional training on any these topics, please set up an appointment with my department at clientrelations@bgs3.com to get started.

Written by: Ryan Richins, Manager, Client Relations