Provided By KW Blog
By Jay Papasan
Austin-area REALTORS expressed shock and dismay when it was discovered that many of their coworkers were infected with the noxiously virulent and business-threatening strain of the LG1Z1 virus, commonly called the “lead generation zombie syndrome.” One local real estate board executive who spoke with us on the condition of anonymity reported, “This is a problem of pandemic proportions, not just in Austin, but throughout the industry – infected agents simply won’t ask for business.”
News of the zombie virus outbreak broke after the local Multiple Listings Service (MLS) hosted a series of meetings for agents and brokers to exchange old for new datakeys or “dkeys”, the electronic keypads that provide access to listed houses. One MLS employee—recently relocated from Colorado and in need of a real estate professional—facilitated exchange and met thousands of real estate agents without being asked if she needed an agent or even for a referral.
“This was the last day to exchange your equipment,” said KW agent Colin Platt. “I know for sure she had seen thousands of REALTORs over the previous few days.” Platt engaged her in conversation, established rapport and discovered she was new to town and thinking of buying. Platt asked for her contact information and got her commitment to meet about buying a home. “I really believe now that if you don’t ask, you don’t get,” he summed up.
Local board members called in specialists from the Centers for Disease Control and Prevention in Atlanta who issued an urgent call for KWU training and MAPS coaching. Said one CDC official, “The great tragedy of the LG1Z1 virus is that, although it is the leading killer of real estate businesses, it’s completely preventable with regular training.”
How do I know if I have LG1Z1?
You may have the lead generation zombie syndrome if you have some or all of these symptoms:
1) Infrequent or irregular closings
2) Sphere of influence deficiency notable by a lack of referrals
3) Commission atrophy and client loss
4) Long periods of boredom, restlessness or inactivity
5) Irritable spouse syndrome
6) Increased Ramen intake
With other epidemics, quarantine is often an effective strategy, however with the LG1Z1 virus, experts are advising exactly the opposite. Congregating with like-minded agents in training and coaching forums seems to be the best medicine. In test subjects, regular exposure to scripts training and coaching effectively bolstered immunity to the virus. Alexis MacIntyre, director of KWU training and faculty development, explains, “The answer to an unasked question is always no. When agents arm themselves with proven scripts and dialogues, they have more confidence to ask for business and the ability to overcome common objections. We encourage everyone to get inoculated today so we can eradicate this virus!”
Thursday, October 14, 2010
Tuesday, October 12, 2010
A Peek into the World of Short Sales and REOs
Provided By KW Blog
Want a quick peek under the tent at the large and very different world of short sales and REOs (bank owned foreclosures)?
Four top distressed property agents chatted with Gary this morning, sharing some views into a world that a relative few agents know well, and one that a growing number are learning.
Foreclosures have been growing across America in the past several years and nothing has changed about that reality. What’s new is that more agents in places like Pennsylvania and Minnesota are learning what the most distressed markets like California, Arizona, and Florida have known for some time. Distressed property is here to stay, for years to come.
The panel was short sale specialists Brian Gubernick from Phoenix, AZ, Jeff Payne from Panama City, FL, as well as REO masters Kristian Peter of San Diego, CA, and Andrew Monaghan, from the Phoenix-area. Between them, these agents listed and sold more than 1500 short sale or bank owned properties in 2009, and their businesses are all growing!
Their focus was on key business realities that define what they do. Here’s a short list of key messages they shared, and the huge crowd listening in:
Short sale lead generation is much like traditional lead gen. Gubernick and Payne use the same techniques to prospect that work in traditional markets. They make themselves very visible in all their target markets as “the short sale expert.” Said Gubernick, “The difference is we ask just one very direct question in our lead gen, “Are you behind in your mortgage payments? Are you underwater? If so, we can help you.”
Seller qualification is very important in short sales. “These homeowners are in serious financial pain, or headed that way fast,” said Gubernick. “For the best chance of selling short, homeowners need to be motivated to cooperate with their agent all the way–fully disclosing their financial status and providing all the documents including tax records that banks want to see. Gubernick does a brief qualifying phone interview (less than 30 minutes) and then emails the necessary documents from him–and also a list of what the homeowner must provide. “If I don’t get a completed document set back in about 48 hours, chances are that party is not going to work with me successfully,” Gubernick emphasized.
The all important negotiation of offers with the lender is the part many agents dread. The best alternative? Refer a short sale lead to an expert in your area, and stay focused on your own lead generation. “When an offer is received, that’s when the hard work really starts,” said Payne. Both agents confirmed the key to success is negotiating the offer to an acceptance from the bank or asset manager is “not taking no for an answer” and “being willing to escalate quickly and forcefully to higher-ups in the bank when unreasonable no answers are given.”
Homeowners are more likely to be forthcoming about their distress these days. “There’s been so much written and broadcast about short selling now that people seem less afraid to move forward,” Gubernick said. “And there are people who are planning to sell short even before they’ve missed a payment.” Payne reported more than 20% of his closed sales there days are for homeowners who were not behind in payments when they made their decision to sell.
REO agent Monaghan and Peter emphasized they live in a process-driven foreclosed property world. Their institutional clients, also banks and asset managers, insist on fast turnaround and precision from the moment a listing is assigned to an agent–that includes property inspection, rekeying and security, accurate pricing, property cleanup, and efficient cash for keys exchanges to move out occupants (tenants or former homeowners).
The institutions who hold foreclosures are expecting more from agents than ever before. “Were scored by either manual or automated systems on almost everything we do,” said Monaghan. There’s a lot at risk. A well-regarded REO agent receives listing in batches–anywhere from several to ten or more at a time. “My inventory has gone from as high as 700 listings to less than 150 in the last year or so,” said Peter. You have to be very cost conscious and have a great staffing game plan to manage it.”
REO agents make big financial commitment to have their business with lenders. “Ninety percent of expenses are reimbursable,” said Monaghan, “but I estimate my out of picket on a typical listing runs almost $4,000.” Top REO agents have full time accountants working for them.
Lead generation for REO is not unlike ordinary lead generation. The difference is who the clients are. “These are institutions. People change jobs, and it’s a world of policy and process,” Andrew said. “I spend almost all my time networking with my institutional contacts. I used to have as much as 80% of my business with one client. Now, that’s changed a lot.” Both Peter and Monaghan said they regularly work with more than 20 banks or asset managers at a time–and each one has their own systems and requirements.
Want a quick peek under the tent at the large and very different world of short sales and REOs (bank owned foreclosures)?
Four top distressed property agents chatted with Gary this morning, sharing some views into a world that a relative few agents know well, and one that a growing number are learning.
Foreclosures have been growing across America in the past several years and nothing has changed about that reality. What’s new is that more agents in places like Pennsylvania and Minnesota are learning what the most distressed markets like California, Arizona, and Florida have known for some time. Distressed property is here to stay, for years to come.
The panel was short sale specialists Brian Gubernick from Phoenix, AZ, Jeff Payne from Panama City, FL, as well as REO masters Kristian Peter of San Diego, CA, and Andrew Monaghan, from the Phoenix-area. Between them, these agents listed and sold more than 1500 short sale or bank owned properties in 2009, and their businesses are all growing!
Their focus was on key business realities that define what they do. Here’s a short list of key messages they shared, and the huge crowd listening in:
Short sale lead generation is much like traditional lead gen. Gubernick and Payne use the same techniques to prospect that work in traditional markets. They make themselves very visible in all their target markets as “the short sale expert.” Said Gubernick, “The difference is we ask just one very direct question in our lead gen, “Are you behind in your mortgage payments? Are you underwater? If so, we can help you.”
Seller qualification is very important in short sales. “These homeowners are in serious financial pain, or headed that way fast,” said Gubernick. “For the best chance of selling short, homeowners need to be motivated to cooperate with their agent all the way–fully disclosing their financial status and providing all the documents including tax records that banks want to see. Gubernick does a brief qualifying phone interview (less than 30 minutes) and then emails the necessary documents from him–and also a list of what the homeowner must provide. “If I don’t get a completed document set back in about 48 hours, chances are that party is not going to work with me successfully,” Gubernick emphasized.
The all important negotiation of offers with the lender is the part many agents dread. The best alternative? Refer a short sale lead to an expert in your area, and stay focused on your own lead generation. “When an offer is received, that’s when the hard work really starts,” said Payne. Both agents confirmed the key to success is negotiating the offer to an acceptance from the bank or asset manager is “not taking no for an answer” and “being willing to escalate quickly and forcefully to higher-ups in the bank when unreasonable no answers are given.”
Homeowners are more likely to be forthcoming about their distress these days. “There’s been so much written and broadcast about short selling now that people seem less afraid to move forward,” Gubernick said. “And there are people who are planning to sell short even before they’ve missed a payment.” Payne reported more than 20% of his closed sales there days are for homeowners who were not behind in payments when they made their decision to sell.
REO agent Monaghan and Peter emphasized they live in a process-driven foreclosed property world. Their institutional clients, also banks and asset managers, insist on fast turnaround and precision from the moment a listing is assigned to an agent–that includes property inspection, rekeying and security, accurate pricing, property cleanup, and efficient cash for keys exchanges to move out occupants (tenants or former homeowners).
The institutions who hold foreclosures are expecting more from agents than ever before. “Were scored by either manual or automated systems on almost everything we do,” said Monaghan. There’s a lot at risk. A well-regarded REO agent receives listing in batches–anywhere from several to ten or more at a time. “My inventory has gone from as high as 700 listings to less than 150 in the last year or so,” said Peter. You have to be very cost conscious and have a great staffing game plan to manage it.”
REO agents make big financial commitment to have their business with lenders. “Ninety percent of expenses are reimbursable,” said Monaghan, “but I estimate my out of picket on a typical listing runs almost $4,000.” Top REO agents have full time accountants working for them.
Lead generation for REO is not unlike ordinary lead generation. The difference is who the clients are. “These are institutions. People change jobs, and it’s a world of policy and process,” Andrew said. “I spend almost all my time networking with my institutional contacts. I used to have as much as 80% of my business with one client. Now, that’s changed a lot.” Both Peter and Monaghan said they regularly work with more than 20 banks or asset managers at a time–and each one has their own systems and requirements.
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