HOT PROSPECTING

Definition of prospecting: the continuous set of activities

performed by a sales partner that will ultimately allow the sales

partner to get a “ face-to-face” appointment with a buyer or seller

The flow chart of prospecting

Contacts: someone you have had contact with by buying or selling

Leads: someone who has said “YES” they might be interested

Prospects: someone you have an appointment to show a home or a listing presentation to make on their property (will they get in the car with you on Saturday?)

Clients: someone who has written a contract to list their home or purchase a home with you

Categorized your clients

Hot Warm Cold Dead 1 2 3 4 A B C D

Contact Strategies

Ready to buy Right away Marry them and don’t let them know your site!

Ready to buy 1 to 6 months Stay in close touch, once or twice per week

Might buy “Eventually “ Put them on a mailing list and contact them 4 -6 times a year

Lost the need Put them on your mailing list, to buy or sell and contact 2 – 3 times a year

Average Agents Income Flow

I N * * ** ** * * C * * * * * * * * O * * * * * * * * M * * * * E T I M E

Activities must be Frequent and Continuous

Active prospecting activities Cold and warm phone prospectingDoor knocking: FarmingFace-to-face: “seven second presentations”

You go to them

Activities must be Frequent and Continuous

Passive prospecting activities Advertising Floor time Open housesFarm mailings

They come to YOU!

Follow up to activities

Follow up notes to open-house clients Follow up notes to people you have met Follow-up calls (within “ Do Not Call”

guidelines only)

Effectiveness of various types of prospecting

Mail outs 2-1000 Phone calls 1-100 Door knocking 1-100 Expired listings (in person) 1-20 Expired listings (mailings) 1-100 FSBO (in person) 1-20 FSBO (mailing) 1-100 Print advertising 1-10,000 Open houses 1-10 Floor time 1-10

Do your prospecting math Collect your “NO” rejections and have some

fun $300,000 home at 3% commission =

$9000 60% agent commission split = $5400 100 “NO’s” before getting a “YES” =

$54.00 per call

Every time you get a “NO” it is worth $54.00 to you!

Phone and Face to Face Prospecting

They should always be: 1. Be Brief 2. Be Polite 3. Be Direct

What to do when you get a “YES”

You should always: Ask for an appointment to meet Offer to show them what you can do for

them Find out what THEY are looking for Confirmed the appointment Thank them and get off the phone or

leave the house!

FSBO’s (For Sale By Owners)

What you should know: Nearly 90% of FSBO’s end up listing with

an agent FSBO’s change their own oil, as they feel

they can do everything themselves Working FSBO’s is like shooting fish in a

barrel Average FSBO list after eight weeks of

trying to sell themselves

FSBO’s (For Sale By Owners)

The average agent contacts a FSBO 3 times

Persistence pays: there are only two reasons to stop calling a FSBO

1. They have sold or are listed with another agent

2. They had change their mind and now don’t want to sell.

FSBO Campaign You should contact them: 1. Called to see if they will pay you a

commission if you bring them a buyer (yes or no)

2. Make an appointment to see the home so you can tell your buyers about it!

3. Meet the FSBO and give them a card. Ask them if you can stay in touch to show their home when you find them a buyer.

4. Set a schedule to follow-up and… Follow-Up – Follow Up – Follow Up

Expired Listings

Create a system for follow-up: - The date expires - Two weeks after it expires - 30 days after it expires - 6 months after it expires

Sphere of Influence What to look for in a Sphere of Influence: Usually, a higher referral rate than other

types of prospecting How many names to having your phone book Do you have a good accountant? Hand-written notes are very powerful! 3

notes a day x five days a week x four weeks a month = 60 personal notes

It’s not about your friends and acquaintances buying or selling. It’s about every one they know that might buy or sell.

Geographic Farming Choose area – drive the area and note

how many or who has the listings Call Orange Coast Title for owner/non-

owner names Create a marketing plan to make contact,

a minimum of once a month Deliver scratch pads, postcards,

refrigerator magnets, newsletters, etc. ( an item of values)

Be consistent. If you don’t farm consistently you might as well not start. You want to become “ Famous” in your farm

Geographic Farming

The ideal farm is between 500 – 1,000 properties depending on your budget.

Farming Math: 1,000 homes in an area with a 5% turnover rate per year will equate to 50 listings. If you have 10% of the market share in that neighborhood, you will have five listings in one year. If you have 30% of the market share, you will have 15 listings!

Geographic Farming

Something to keep in mind when farming: the person who is going to sell their house next month does not know it today. There is going to be an event that will trigger the sale but the event has not happened yet. (Death, birth, job transfer, job loss, job promotion, marriage, divorce, etc.)

Geographic Farming

How long will it take? Geographic farming is a long-term investment. Seeds need to be planted and watered to grow. Only after much “farming” do you reap the harvest

How much as a cost? Farming costs can vary substantially depending on how you design your campaign, what materials you decide to mail, and what mailing methods you use. First class mail will cost more than bulk mail.

Geographic Farming

Bulk Mail: for bulk mail, Dilbeck Real Estate offers a program that will reimburse to sales partners for a portion of their direct mail costs. The amount of reimbursement is based on the commission schedule at the time of the mailing. The company will reimburse up to $.20 per piece for the allowable number of pieces.

How Good of a Job Are You Doing Prospecting

Here’s a question for you: Take any prospecting activity and pretend this one activity is the “only” activity that you are allowed to perform in real estate to make money. Now ask yourself, how you would do it differently

The “SEVEN Second" presentation

“Will you do me a favor?I’d like you to keep my card.

When you know of someone interested in buying or selling Real Estate,

ANYWHERE,Will you please ask them to give me a

call?”

Prospecting Make Prospecting a Habit! Prospecting is either a

habit or a problem, but never both. Make prospecting a daily habit. Just like marketing, you never stop prospecting. Make prospecting activities a part of your daily calendar and where ever possible, make it automatic by using a contact management system like the Real Living Business Center.

By scheduling prospecting into your daily calendar, it will become a habit and not a problem.

Floor Time Agents are looking for Clients

Floor time…. Do’s and Don’ts

You must know your inventory, both listings and other well priced homes on the market

Make sure you have seen ALL of our listings in your market place, whether they are listed by your office or another Dilbeck Office

Look at the ads that were advertised. Talk to the previous floor agent or the receptionist about what properties buyers have been calling about

Floor time…. Do’s and Don’ts

Always be familiar with 3-4 listings that you feel are good values and preferably in various price ranges that you can discuss with perspective buyers. You never know who you may run into at the market, car wash, soccer games, etc.

OPEN HOUSES THAT PRODUCE RESULTS

Why Open Houses?

Emailing Door Knocking Distribution Phone Calling Mailing

Marketing system that builds on Multiple Prospecting Techniques

11 days before (Wed)

Familiarize yourself with the Property

Familiarize yourself with the Neighborhood

Determine High Traffic areas

Select the property YOUwant to hold open

11 days before (con’t) Consider additional agent to assist Confirm with Listing Agent Prepare Advertising Send to Ad Coordinator Know regulations regarding permits, flags and

balloons

10 days before (Thurs)

Select Area(s) to Invite Surrounding Neighborhood Lower Priced Area that would move up to

this property Your Prospects Your Sphere of Influence

10 days before (con’t)

Determine Marketing Piece(s) Invitation Flyer Door Hanger

Create or Order

E-Flyer

9 days before (Fri) Preview Property Preview Comparable

Properties Active Contingent (if possible)

Preview Neighborhood Properties

6 days before (Mon)

Mail Invitations Install Open Sunday

Rider Door Knock

Invitations Door Hangers

5 Days before (Tues) Have Escrow Prepare Buyer Closing Costs Have Assurance Mortgage prepare Financing Flyer Continue Marketing Efforts that you selected

4 Days before (Wed)

Collect Local Area Information

Chamber of Commerce School District Association of Realtors

Schools Shopping Parks Transportation

4 days before (con’t)Start the process over for the next Open HousePrepare E-Flyer as Open House Personalized with your name (if not your listing) Make copies Email to Sphere Of Influnce, Prospects

3 Days before (Thurs)

Prepare Handouts for Open House Copy of E-Newsletter Local Information

Check comparable properties Availability/Status Open same day?

2 days before (Fri) If using laptop, prepare slide show of

comparable and or neighborhood properties

Prepare, Personalize, Print Active Comparable Listings from MLS as handout

1 day before (Sat)

Add to Craigslist as an Open House

The later in the day the better to get better placement when searched

Open House Day

Gather Information to Take Flyers Business Cards Local Information

Name Tag Comparable

Information Guest Book or Registry Laptop

Check advertising to be aware of other open houses in the area

Open House Day

Stop at the Market Buy a bag of ice

Put in kitchen sink with water bottles

Dry Candy/Mints Flowers Gift Card for Drawing ($25)

Open House Day Arrive in time to set up

Go to the home FIRST! Prepare home for showing

Get seller’s permission A/C or Heat Fireplace

Candles or Air Freshener No Animals!! No Land Mines Lights On, Drapes Open

Open House Day (con’t) Put note on door…back in xx minutes Go to furthest point out and place

open house signs Often consumers will follow you to

the house…and you’re ready!

Actual Open House Wear your name tag

Your safety is most important. Be aware of your surroundings and security of the home.

Your attitude is key!

Guests Arrive

Greet them with a warm welcome Ask them to sign the guest registry on your laptop

“The seller requests that anyone who wants to see the house please give their name and contact info”

Ice Breakers Do you live in the neighborhood? How did you find out about this Open

House? Are you working with an agent? What size home are you looking for? Have you seen any homes that you’ve liked?

During the Open House Have your laptop running a slide show of

comparable homes Offer copy of comparable homes that you

have personalized with your name, email, websites etc

Buyer Broker Agreement…just in case you can sign one up!

Buyer Sale Package

Your attitude dictates your success Be Positive Be Helpful Listen to them and Learn their needs and wants Provide Premier Service to both the Seller and Buyer

Closing the Open House

Put a note on the door that you’ll be back in xx minutes

Go to the furthest sign out and pick up signs…often there will be someone looking until the last minute, they’ll follow you…again you’ll be ready!

Return the home in the condition in which you received it.

Closing the Open House (con’t) Leave a note for the

seller

Thanking them for the opportunity

Recap Activity

Day 1 After the Open House Add Contacts to your Real Living Business Center

Contact Manager Contact all guests through whatever means possible

Set the contact up on a campaign Ask for feedback on the home Ask for appointment to qualify and get their

commitment to you Offer to show them properties that fit their needs

Miscellaneous Thoughts If you are working the open house with

another agent Have a written agreement on how you will be

handling the public that attends Referral? Split Commission? If one of you brings the buyer?

Miscellaneous Thoughts Consider yourself as putting on a performance:

A buyer or seller may be evaluating you to be their agent

People will look for your enthusiasm, confidence, trust

This is your opportunity to show your Premier Service Attitude