Sam's Blog

head_left_image

FSBO Prospecting - Buyer Screening Service!

 buzzardcircling     

Just like these buzzards circling the scent of their next meal, many realtors are circling FSBOs too!  

There is another way to work with "For Sale By Owners" that I promote from what my colleagues are doing in other markets too.  Instead of asking for their listing, ask if you can help them by getting all of their prospects pre-approved before allowing prospects to see their house! 

Mention to your FSBOs that your favorite Mortgage Advisor (me, I hope!) just did another study of his prospects and year-to-date, he had the following results.   Out of 509 applications taken in this market Jan-Oct, 48% for the borrowers had a credit score lower than to 580 meaning they cannot get a loan right now. 15% were in the grey area between 580 and 619 meaning they might be able to get a loan if they have good compensating factors and if they can pay off their collections, charge-offs and judgments.  But only 37% had a 620 credit score or higher meaning they have a shot at getting approved.  

For this 37% of home shoppers in our market, less than half have any money for the down payment and closing costs and of those, many do not have an urgent need or strong desire to buy.  Also, many have contingencies too.  

Based on this, only around 1 out of 10 prospects are really a "qualified" buyer.  In other words, the FSBO is going to be wasting a whole lot of time with people who will not be buying their home.  

So, work up a flyer with your contact information and offer to give your FSBOs some suggestions on how to sell their home and ask them to tell anyone that contacts them to call you so you can screen them.  When you start getting prospects, call me and I'll try to get them pre-approved and I'll keep you posted on my progress.   

Then we can work together to try to get the borrower to use you if they decide they do not want their house!   

And by staying in touch with these sellers, when they do decide to buy, YOU are the one getting your FSBOs' listing!

mysignature
Senior Mortgage Advisor

PHH Mortgage - 843-230-7929

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

2 comments • Sam Thompson • September 28 2008 11:12PM

Transparency and Oversight needed in bailout plan.

The financial saga continues...

Buzz words that you heard from politicians and others over and over again last week was the need for more 'transparency' and 'oversight'.  

In case you are curious as I was to the definitions that these entail in terms of the relevancy to the financial crisis, here goes...

Transparency - the full, accurate, and timely disclosure of information.

Oversight - Overseeing the performance or operation of a person or another group. 

I am glad that these things are being put in the language of the bailout plan to help our industry and our economy as I am sure you are too. 

These are extraordinary times and hopefully history will show that we got it right with swift and decisive action with controls and actions to help people on Main Street while helping and controlling Wall Street so this problem does not reoccur again.  

The sooner the better so we can start selling a ton of houses!!

mysignature
Senior Mortgage Advisor

PHH Mortgage - 843-230-7929

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

0 comments • Sam Thompson • September 28 2008 11:09PM

The Doctor Analogy - Are you getting referred too?

 

doctor
 Who do you call when looking 
 for a Doctor?
 
Think about it.  How did you select your Doctor or Surgeon?  How did you select your CPA or Attorney?  What about your Plumber or Hairdresser?  Usually from asking close friends who they use, right?  You want to make sure that they are good from personal experiences and not from the ads you saw in the yellow pages, etc.
 
The same thing happens in Real Estate.  I don't know the statistics on this but my guess is that it happens more than the others because, most people don't know much about these transactions because they only happen once or twice in a lifetime.
 
People probably call someone they know that recently bought or sold a house to find out what they thought about their Realtor or they ask someone they trust that may know like their CPA, Attorney, etc.
 
This is why the good agents that have been in the business the longest are doing so well.  It's through direct referrals that they get from past clients and other service providers.  The ones that are getting the most from this are the ones that stay in contact with their past clients and network with other service providers on a regular basis.
 
Here are a few ideas I think will really help you develop this marketing strategy.
  1. Treat your clients with respect with professional and friendly service.  Keep them well informed at all times.
  2. Ask them for a reference letter after closing.  This is very valuable in building a good presentation binder and in helping your clients think about how good you were throughout the transaction.
  3. Stay in touch with them on a regular basis with holiday cards and birthday cards.
  4. Stay in touch with other service providers that are likely to get asked if they know a good realtor too.
  5. Finally, call your past clients at least annually to chat about THEM and not YOU.  People love to talk about themselves if you will pause and let them do it and this really helps your rapport with them.  But, always end the conversation with some good information about the market and ask if they know anybody that might be entering the market soon!
Then, your past clients will give you some referrals and they will remember you more and they will be out singing your praises. 
 
Think of them as your little army of PR specialists!
 
 
Also, when your clients need a great mortgage guy, don't forget about me!   If you refer them to me, I'll do everything I can to help them with professional and courteous service and I'll promote you too!
 

 

 

mysignature
Senior Mortgage Advisor

PHH Mortgage - 843-230-7929

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

1 comment • Sam Thompson • September 22 2008 09:06PM

Yard Sale Open House Idea - Neat Idea!

Here's a quick great tip for those of you with a lot of initiative.  Why not offer to hold a "Yard Sale/Open House" with your sellers?
 
One realtor in my region does this and not only does she make some extra cash by selling some of her items in the sale, she develops better rapport with the sellers and shows the property too.  This agent said I could share this with you to help stimulate your business and the market as a whole.  With the slow economy, a yard sale is really a great idea to lure in some buyers! 
 
She just made $61 a couple of weekends ago and got a buyer too!

Hey, if you are really ambitious, you can approach all of the neighbors to go in with you or get them to have a yard sale too to really bring in more people and prospective buyers into the neighborhood!  This would be a great excuse to talk to the neighbors about your listing and about your service to your client.
 
Since people are attending yard sales more and more, this is a great way to prospect for buyers and sellers.  With Christmas right around the corner, this is a great idea to unload some items and to make some extra Christmas cash too.
 
 READ THIS PART!
 
Just include this additional service in your listing presentation that will help your potential sellers see that you offer more that the next guy.  Say that "In order to help get the house in top showing condition, we can have a Yard Sale/Open House.  This will allow us to de-clutter some things so the rooms look roomier and then we can stage it at the same time so they can see the potential. This yard sale will generate interest in the neighborhood and draw in prospects from all around town!" 
 
Isn't this a neat idea!
 
__________________________
 
Are you still promoting the $7500 1st-time buyer tax credit!  This will probably make the mortgage payment for the entire 1st year for most houses in our region!  How's that for a great incentive!
__________________________ 
 
Thanks for your business.

 

mysignature
Senior Mortgage Advisor

PHH Mortgage - 843-230-7929

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

3 comments • Sam Thompson • September 22 2008 09:04PM

How to find Good Buyers - Part 2 of 2

buyergraph
 
Are you prospecting for better buyers? 
 
The trend I am seeing over the last several weeks is that less and less buyers have any cash on hand in the bank and their credit scores are lower than ever. 
 
Also, they are less informed than they used to be as well.  For example, one young lady called to get pre-approved for a $279K house since she just got a new job making $36K like the garbage collector above.  The mortgage on that alone would almost be her entire gross pay!
 
Anyway, I am sure that there are some good buyers out there looking for a great realtor to find them and tell them about the great values, tax credits and low interest rates to get them into the market. 
 
Here are 10 ideal places and ways I thought of to find them!
  1. Promote an incentive for higher than 620 credit scores!  How about promoting with something that mostly higher quality buyers want like college football tickets or tickets to a wine tasting event or maybe a play?  If you advertise for folks with bad credit, that's what you are going to get so why not do the opposite?
  2. Put out some professional looking brochures in some higher-end automobile dealership service center waiting rooms, high-end retail stores, nicer beauty salons, pet salons, nicer hotels, nicer fine dining restaurants, etc.  Promote your 'white glove' high-touch service and highlight the extra things you do.
  3. Hold an open house in your better homes and if you do not have any higher priced homes, ask a realtor in your office that does if you can hold an open house there.  Then, read the open house idea listed in my sample business plan again and see if you don't find some great buyers!  Cover this strategy with the listing agent first and then go for it.  It is a great promotional strategy for generating prospects.
  4. Scan the papers for events that higher quality people might be attending that week and make sure you are there!  Take a current client with you to increase your chances of running into people that you can talk to while building that rapport with your clients too. 
  5. Network with individuals that circulate in the right circles.  Take a super networker to lunch and try to get included in their circles and things that they are attending.
  6. Airports are great places to do some prospecting for higher-end business travelers that may be relocating to town soon so why not put out some good marketing material and attract them to you before they get serious about a new home?
  7. Libraries and book stores are great places for some prospecting for good buyers with some good literature about the local market and about your business.  And since these places are full of readers, think about some things like branded giveaway bookmarks.
  8. Take a quick trip to the beach and meet with a realtor and partner with them for some referral fee promotions.  Then promote some of their listings in your print ads with their help on the cost.  Since most people are not familar with the values that are available at the coast right now, you are sure to draw some interest from some good buyers and then, who knows, you might get them interested in some local properties too!
  9. Advertise on a cable channel that might be attractive to better buyers like the food channel, news channels and HGTV. Go in with some colleagues to promote your services and to share the expense.
  10. Put on your best professional outfit and namebadge and start networking in higher-end businesses and networking meetings as much as you can with your business cards in your pocket.  Some places that come to mind are:  Chamber of Commerce meetings, concerts, fine dining restaurants, plays, tradeshows, etc.

The main thing is to think of yourself as a higher-end realtor and think this way in all that you do.  Look your best, carry yourself with pride, wear a badge and a smile and be outgoing. 

When you do, you'll start to attract better buyers.  Believe me, these guys are a whole lot easier to close and with them, you are going to make a whole lot more money and have a whole lot more fun doing it!

 
Thank you for your referrals!

mysignature
Senior Mortgage Advisor

PHH Mortgage - 843-230-7929

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

3 comments • Sam Thompson • September 14 2008 11:31PM

Where are the good buyers? Part 1 of 2

 

Are you finding any good buyers?
 
If you are, let me talk to them so I can help you close them fast!  But if you aren't, keep reading for great ideas on how to find them.
 
Have you started working on that business plan I sent you yet?  Let me know if I can help you with that.  I am convinced you'll multiply your business if you will develop one and the one I sent you can really help you with that.
 
Also, here's a quick motivational observation.  I took an application last week for a garbage collector in Laurinburg, NC that makes $36,000 a year.  Does that get you motivated?  The way we are going this year, I am not sure we are going to make that much.  I am including myself in this since I am 100% commission just like you are and my business is suffering just like yours.
 
So, what are we  going to do about it?  Let's get a business plan fine-tuned and get some better quality buyers in and closed.  I am still working on my plan!  Here's the link to the sample plan I wrote for you again in case you deleted it.  Copy it over to your PC and tweak it for your business and let's all make some crazy money!
 

And remember the $7500 1st-time buyer tax credit and push this as much as you can!   Here's a link for more information.
 
 
Thanks for your business.

mysignature
Senior Mortgage Advisor
President's Club Member 2007
Mortgage Services
 
Click here to write your congressman to save the Down Payment Assistance program (DPA) program for FHA loans.  I wrote to all the congressmen in my territory by changing the zip codes I work in.
 
 
910-489-6918 or 843-230-7929

 

 

Thank you for your referrals!

mysignature
Senior Mortgage Advisor

PHH Mortgage - 843-230-7929

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

1 comment • Sam Thompson • September 14 2008 11:28PM

Do you have a Business Plan? Here's one you can copy to be a Top Producer!


 
 

busplan 

 A Good Business Plan is the Key! 
 
We are our own worse enemy.  Questions:  Are we working towards our goals with a strategy that will ensure our success?  NO!  Do we have a plan to help us?  I seriously doubt it!
 
If anybody ought to know this, it should be me because I used to sell business plan consulting services.  I know how important this can be and I am working on mine right now.
 
Key elements for a good plan for you is to set your goals and metrics to measure yourself, define your target markets, devise some work ethics for your business, throw in a mission statement and a good sales philosophy and you have something that can help you manage your business.
 
Then if it doesn't work like you planned it, change it!  It should be a working document that gets reviewed and tweaked and is constantly improving.  But you have to start by sitting down and writing one.
 
Okay, I know that nobody is going to write one so I wrote one for you!  Click below for the ultimate business plan that will make you a top producer.  Just copy it over to your PC and modify it to suit your business.  It is loaded with 28 target marketing ideas from my 200+ "Hit the Ground Running" ideas that you can use or just plug in your own.
 
 
 
 
Go ahead, take your business to the next level with a good business plan and include me in your plan and I'll help you get there too!
 

 

Thank you for your referrals!

mysignature
Senior Mortgage Advisor

PHH Mortgage - 843-230-7929

Senior Advisor - Helping you GROW your business!

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

11 comments • Sam Thompson • September 07 2008 11:10PM

Promote the $7500 Tax Credit in all you do!

 

Get your buyers attention now!
 
taxcredit 
 
This new government incentive is huge IF we promote it!  It worked when this was done in the early 1970s with a $2000 tax credit and will work now if we get the word out.
 
If you don't start promoting this now, other realtors will and you are going to miss good buyers.
 
So, call your advertising guru and put together a simple promotion to get your phones to ring!  Put this in all of your print ads and flyers!
 
When they do, ask them to call me and I'll explain it to them and help them get excited about buying a house right now with YOU!!

Think $7500 1st-time buyer tax credit!
 
Thanks for your business.

mysignature
Senior Mortgage Advisor
President's Club Member 2007
Mortgage Services
 
Click here to write your congressman to save the Down Payment Assistance program (DPA) program for FHA loans.  I wrote to all the congressmen in my territory by changing the zip codes I work in.
 
 
910-489-6918 or
843-230-7929
__________________

Great News for my NC Realtors!  I can now originate USDA approved loans for 100% financing in NC!  SC will have to wait until November and by then, I'll be an expert on these.   

 

 

www.activerain.com./luckydog1 - SC

www.activerain.com/luckydog2 - NC

http://samthompson.phhmortgage.com/

www.myphhmortgageadvisor.com/

 

7 comments • Sam Thompson • September 07 2008 11:07PM