The Listings Handbook
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- Leo Bailey
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1 The Listings Handbook Your Guide to Winning More Listings
2 Table of Contents Identify Your Resources 3 Sources of Seller Leads 4 Working with Millennials 5 Scripts to Engage Sellers 5 About Market Leader 9 When you list, you last, or so the old real estate saying goes. But how do you generate listings when the market is so competitive that off-market homes are receiving bids before sellers have even thought about listing? Many experts recommend returning to the basics in this changing market if you hope to attract homeowners who want to sell. Heed the following guide to secure your share of listings, regardless of a dry market! 2
3 Identify Your Resources Sadly, more often than not, agents aren t fully aware of what their tools are capable of. Assuming you re using a CRM to manage communications with your contacts, are you also using that system to track your lead s behavior and automate the lead nurturing processes? Knowing what your technology is capable of and taking the time to understand how it can help you will be enormously beneficial for your processes, relationships, and business. Your network, database, website, blog, social profiles, affiliates, and marketing tools are all great resources and potential sources of seller leads. Identify the resources and tools already in your arsenal that you can leverage to engage, nurture and convert leads. Tap Your CRM Start with the warmest contacts in your database and work your way to the coldest prospects. This means starting with your sphere of influence reaching out to family, friends, and past clients with the age-old question: Do you know anyone who is planning on selling their house? Even if the answer is no right now, the story may be completely different next week, and you ll be top-of-mind for them because you reached out. Revisit Cold Leads According to Inman, the biggest mistake Realtors make is throwing away great leads, because they aren t ready to transact. Ironically, 95 percent of the real estate journey takes place before a lead is ready to make contact, let alone transact. You ve likely got leads in your system that went cold a long time ago that should be revisited and more likely to list today than they were when you first made contact. In her efforts to find homes for her buyers, St. Paul, Minnesota, broker Teresa Boardman struck on an interesting idea. She went through her database and pulled out the names of homeowners she d given a listing presentation to within the last three years. After checking to ensure they hadn t sold with someone else, she started contacting them. Some of them were unrealistic, she explains, wanting $275,000 for a house that s worth $200,000. Out of the few calls she s made so far, however, the plan seems to be working. One I m going to list for sure, and another one looks like a real strong possibility, and another is trying to decide if he should rent out the house or sell it, she said. 3
4 Revisit Cold Leads (cont d) Another technique that works during low inventory periods is to go after expired, cancelled, and withdrawn listings. Tom Ferry suggests choosing the worst year to be on the market out of the past three years and aggressively marketing to the homeowners with these types of listings. Even if these homeowners don t want to list right now, you can put them on a drip marketing campaign; chances are good that they ll reach out if they sell their homes in the future. Sources of Seller Leads Easily the fastest way to generate new seller leads is to buy them. If you work them right, paid online seller leads can be a cost-effective marketing tool. Paid Seller Leads Paid online leads are leads that are bought, most commonly through paid advertising or third party companies. Advertising Leads: Leads that are bought by way of advertising dollars essentially land on your website by paying search engines or social networks to get your information in front of the right seller audiences. These can be great, but they often come at a pay-per-click (PPC) cost rather than cost per user who registers on your website. This means that anyone who clicks on one of your advertisements is costing you, whether you end up getting their information or not. They may land on your website, but that doesn t mean they re going to register their information with you i.e., become an actual lead. Third-party Leads: Another type of paid lead can come to you via third party. Third-party leads can be tricky and extremely competitive so be sure you understand exactly what you re getting when you sign up for any third-party lead service. With some services, each lead is sent to multiple agents who then compete to earn that prospect s business, so be sure to read the fine print before you commit. Always take the time to research the best option for your specific business objectives, strategy, and make sure you fully understand the what you re getting when you advertise or pay for leads. When you list, you last! Want more seller clients? Get a guaranteed number of exclusive seller leads each month with HouseValues leads. These leads are pay-per-lead, meaning you only pay for the leads you receive! Learn more 4
5 Working with Millennials 53 percent of millennials are already homeowners and their average home-ownership tenure is four years shorter than other generations. Of millennials that currently own homes, 60 percent reported plans to sell next year. They are buying and selling homes at a rate that will continue to fuel the housing market for years to come and will be the generation that provides relief to the clogged market caused by Baby Boomers holding onto inventory. They are a potential real estate gold mine for agents prepared to meet their needs. Nela Richardson, chief economist at Redfin, reported seeing 73 percent of millennial sellers try to negotiate with the listing agent for a lower commission, compared to 44 percent of Gen-Xers and 24 percent of boomers, and nearly two thirds of millennials who tried to get a lower commission rate percent reported being successful. We re not recommending that you discount your commissions, but consider the lifetime value millennials bring to the table with recurring business and their network of referrals it might be worthwhile to create a loyalty or referral program to offer incentive (and improve loyalty). Everyone loves incentives. These programs serve as a proactive approach to tackling negotiations, and a great way to meet such requests. Millennials may have been late bloomers, but they have arrived and will continue to power the real estate market for the unforeseeable future. Scripts to Engage Sellers We ve covered what resources you can tap to source listings, and now we give you the tools to engage them! Remember, these scripts can be modified for phone calls, , or talk tracks once in front of your seller leads. Practice them and make them your own! Expired Listings Get as much information as you can on the home before picking up the phone so you can better connect with the homeowners. Learn about the home itself, or find mistakes in the listing, price, marketing, or showing availability that their previous agent missed. Find a way to offer value and be mindful of the fact other agents might also be calling them. Set yourself apart by being genuine, transparent, and showing concern for their situation. 5
6 Expired Listings (cont d) Hey [their first name], this is [your name] with [your company] calling how are you? Are you another real estate agent calling about my listing? Yes, I figured you were getting calls because we are all thinking the same thing you are how could a listing possibly expire in this good of a market? Obviously, something went wrong and I wanted to see if you were open to having a quick conversation around that? Yes, but at this point I am totally frustrated with the process. I don t know what I am going to do right now. I figured as much. Obviously, you listed your home because you wanted it to sell and the reason it expired wasn t because of you. The reason I am calling is that at some point you are going to list again and when you do, you will interview agents. I am hoping to be one of those agents. Would you be willing to give me 20 minutes when that time comes? FSBOs Hi there, this is [your name] with [your company], and I m calling about the home for sale. Is this the owner? Is this another agent calling to try and sell my house? I am. [their first name], I am calling because I m wondering the same thing every other agent in the area is thinking: WHY? We feel good about selling ourselves without having to pay commission. Tell me this, [their first name] what is more important to you in selling your home selling it on your own, or selling it at the highest price and making the most money? Sounds to me like making the most money. What if we could help you and help you sell your home faster, with less hassle and risk, and net more money; would you consider interviewing us? How can you guarantee that? Great question. When we get together, I will show you. Does tomorrow or [other day of week] work for better you? 6
7 Hot Market Hi there I m [your name] with [your company] and I m calling to give you an exciting update on the real estate market in your area. [x] homes in [neighborhood] have sold in the past 60 days and [x] sold above listing price! Did you know that? This is a great neighborhood consider selling in. When one home sells, it s pretty common for 2 3 more to sell right away. Curious, have you given any thought to selling your home? No, I have no plans to sell. I understand. How long have you lived there? Wow! Can I ask, how did you pick this [neighborhood/community]? School district, commute, etc. I know! I ve thought about relocating for the [specific school, commute, etc.] alone! Tell me, how long do you see yourself/your family staying here? If their response is longer than a couple years: Great, homeownership is a long term investment. If you find yourself wondering what your home s worth in your hot market, don t hesitate to reach out. I offer free home valuations and resources, whether you re ready to move or just curious. Do you know anyone that IS looking to buy or sell that I could help? Add them to your CRM and send a follow up card with your contact information to thank them for their time. If they are thinking about selling or moving in less than a year: Think about when you ll be ready sell and the process of selling. Did you know, it can take months to get a home prepared to sell? No, I didn t think about that. Well, let s talk about it. Let me walk you through the home selling process so you know what to expect and, when the time comes, you re better prepared to start that process. Does [day of week and time] work for you? 7
8 Just Sold or Pending Sale Get homeowners to think about selling, even if they haven t entertained the idea before. A great way to get in front of potential listings is to convince them, if they haven t thought about selling yet, now is the time! Hey [their first name], this is [your name] with [your company] calling and I m proud to say we just sold your neighbor s home at [listing address], for $[sale price]. Did you know it was on the market? When one neighbor sells their home, it s pretty common for 2 3 homes in the same neighborhood to sell right away. Curious, have you given any thought to selling your home? No, I have no plans to sell. I understand. How long have you lived there? Can I ask, how did you pick this [neighborhood/community]? School district, commute, etc. I know! I ve thought about relocating for the [specific school, commute, etc.] alone! Tell me, how long do you see yourself/your family staying here? If their response is longer than a year: Great, homeownership is a long term investment. If you find yourself wondering what your home s worth in our current market, don t hesitate to reach out. I offer free home valuations and resources, whether you re ready to sell or just curious. Do you know anyone that IS looking to buy or sell that I could help? Send a follow up card with your contact information and thank for their time. If their response is a year or less: Think about when you want to sell and the process of selling. Did you know, it can take months to get a home ready to list, marketed and sold? No, I didn t think about that. Well, let s talk about it. Let me walk you through the home selling process so you know what to expect. Does [day of week and time] work for you? Remember: identify your resources, reach out to past clients and leads in your CRM, and differentiate yourself! If you re creative in your lead generation techniques, not only will you start generating seller leads in a tight market, you ll be stocking your pipeline for seasons to come securing listings despite a dry market. 8
9 9 About Market Leader A leader in real estate technology since 1999, Market Leader proudly serves over 250,000 agents and teams across the United States and Canada. You can build and manage your business, lead-to-close, with our products: Market Leader Professional One intuitive system for agents and teams to generate and convert leads. It includes an end-to-end contact relationship management system, customizable IDX website, and a fully-integrated marketing design center. Learn more Leads Products We wrote the book on generating leads. Get a guaranteed number of leads not just impressions delivered directly to your CRM. These leads are exclusive not shared with other agents. Lead inventory is limited, so check availability today. Learn more 9
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