Complete Foreclosure Marketing System - Move€¦ · Complete Foreclosure Marketing System ... As...

Complete Foreclosure Marketing System

Your guide to dominating the foreclosure market and establishing yourself as a foreclosure specialist.

two : Introduction

three : Foreclosure statistics at a glance

four : How to get your foot in the foreclosure listing market

seven : Become the go-to agent for the most comprehensive

foreclosure list

nine : Get your foreclosure listings noticed in a cluttered market

ten : Get your foreclosures noticed before all other listings

twelve : Expand your social network

thirteen : Bonus tips for promoting your listings to social networks

fourteen : Establish a secondary lead flow source

fifteen : Foreclosure Marketing Checklist

1

Contents


Do you have a system for capturing and or increasing foreclosure market share? In today’s real

estate market, focusing on a niche market is one of the most crucial things you can do to stand out

from the crowd. 70% of home buyers said in a recent survey that they would be more likely to work

with an agent who specialized in the property type they are most interested in. When it comes to

navigating the foreclosure market, buyers are even more discerning in their desire to work with a

proven expert. That dictum also holds true for banks looking for the right agent to market their listings.

Before an asset manager works with you they want to know your foreclosure sales performance

including your average days on market and percentage of asking price.

Before home buyers and out of state investors work with you they want to know if you can show them

the most comprehensive list of foreclosure properties including homes that haven’t hit the market yet.

This guide will walk you through step-by-step on how to attract more buyers who are interested in

foreclosures while also giving you the tools to impress asset managers. Whether you already have

a foothold in the foreclosure market and want to increase market share or have decided to make a

concerted effort to make it your predominate niche, this guide will show you how.

This step-by-step guide will share ideas for ways to:

• Brand yourself as a foreclosure specialist

• Reposition your focus on foreclosures in your existing ads

• Make sure your sphere of influence knows you are a foreclosure specialist

• Get your foreclosure listings noticed in a cluttered market

• Win more foreclosures from banks

In the end you’ll need to decide which side of the foreclosure

business you want to spend your energy on. Listings will still be the

domain of top agents. However, with foreclosures the buyer’s agent

tends to make the biggest profit. As an example a listing may have

6% total commission - typically 3% will go to the buyer agent, 1.8% to

the listing agent and 1.2% referral fee to the asset manager.

2

3

Foreclosure statistics at a glance.

From the Center of Responsible Lending

• Foreclosure projections (2009-2012): 9,000,000

• Total foreclosure starts (Q1-2008 through Q4-2009): 4,315,703

• Total foreclosure sales (Q1-2008 through Q3-2009): 1,296,690

• Total foreclosure inventory (end Q4-2009): 2,076,756

• Total past due mortgages (end Q4-2009): 6,806,224

• 4Q annual change in foreclosure starts (ending Q4-2009): 11%

• Change in foreclosure starts (Q3-2006 to Q4-2009): 155%

NAR’s chief economist Lawrence Yun said, “The so-called shadow inventory of homes taken over

by banks or in the process of foreclosure may total as many as 800,000, while as many as 2 million

additional dwellings are 90 days or more delinquent and headed for foreclosure.”


4

How to get your foot in the foreclosure listing market.

While the foreclosure market can be very lucrative for REALTORS® it can also be daunting when it

comes to getting your foot in the door. So how can you establish yourself as a foreclosure specialist

and secure listings? This guide will show you what many REALTORS® are doing to get into the

foreclosure business.

1. Hold open houses for other foreclosure agents: This will give you an opportunity to learn

from other agents who are already established in the foreclosure market and enable you to engage

with investors and buyers in this field.

a. Make sure that you promote your foreclosure open houses in as many places as possible

to help establish your connection to the foreclosure business. Try running ads on Craigslist,

leave flyers at local businesses, start a blog discussing your open houses.

b. Go the extra mile and offer to take pictures and shoot home tour videos of the property to

accompany your advertising of open houses to get more people through the door.

c. Getting this exposure will help you get noticed by asset managers and banks and help

open the door for securing your own listings in the future.

2. Apprentice under a foreclosure agent in your office: Many agents will often hold their

trade secrets close to the vest, however many other agents will gladly share information if it means

getting assistance and help selling their listings. Start talking to foreclosure agents in your office to

see if there is interest in assisting them.

3. Connect with loan officers and bank managers that you already have relationships

with: Much of your business is already based on relationships and referrals. Take that same strategy

when getting into foreclosures. Start contacting loan officers at local banks you are already working

with and see if they can refer you to their asset manager. Make every relationship work in your favor.



5

How to get your foot in the foreclosure listing market. (cont.)

4. Contact asset management companies: Asset managers are going to be your best

connections to securing foreclosures. The drawback is that many other agents are targeting the

same asset managers. Your best bet is to find out which asset managers are working in your market

and begin soliciting information. While many asset managers already have agents they work with, try

finding asset managers that are just about to release listings for your area – they may not yet have

an agent.

5. Complete as many Broker Price Opinions (BPO) as possible: Contact as many banks

as possible to complete BPOs. Oftentimes banks will offer a foreclosure listing to test an agent out

after working with them on BPOs. You may have to complete 10 to 20 BPOs in order to establish a

relationship. Sometimes they will even offer the listing to the agent who successfully completed

the BPO.

6. Use short sales to connect with banks: Chances are you’ve already worked with banks to

bring buyers to a short sale. Now go back to those banks and show them how you will bring buyers

to their foreclosures.

7. Contact the closing attorney you work with on standard transactions: Attorneys will

often times have other connections to help get your foot in the door with asset managers.

8. Go to the websites of banks and look for the REO page: Doing your research is crucial

and every bank has a different process and rules. Start by compiling a list of banks dealing with

foreclosures and search for the asset managers. Once you’ve compiled your list, begin sending out

letters and emails to promote your real estate marketing services.


6

How to get your foot in the foreclosure listing market. (cont.)

9. Track properties before they foreclose: Start watching distressed properties before they

become foreclosures. The more educated you are about the properties in your area the more

success you’ll have. This will also give you an opportunity to get in touch with banks and asset

managers during the early stages.

10. Get foreclosure certified: Many banks will require that you are certified to sell foreclosures.

Some certifications include NAR’s Short Sales and Foreclosure Resource Certification, Certified

Distressed Property Expert and REO Default Certified Professional. Many banks now have their

own certifications and may require that you take their courses as well.

11. Sign up to sell HUD REOs: Any agent can apply to sell HUD homes. This will provide one more

avenue to show that you are capable of selling foreclosure homes.

12. Contact FreddieMac (Homesteps) or FannieMae (HomePaths): Again these are more

resources to get your foot in the door. Both of these websites provide information and submission

forms for agents.

13. Network on as many sites as you can: It’s all about relationships so you’ll want to connect

with foreclosure agents, bank managers and asset managers on popular networking sites such

as REALTOR.com® REALTOR® Profile Pages, REOMAC, Facebook® and Linkedin®.


7

Become the go-to agent for the most comprehensive foreclosure list.

There are two ways to become a successful foreclosure agent. First, secure foreclosure listings from

asset managers and banks. Second, become the agent that has the most comprehensive list of

pre-foreclosure and foreclosure homes. For many agents showing foreclosures is more desirable

than listing since it can mean a higher commission on the buyer side of the transaction, less upfront

marketing costs and a lower barrier to entry. This section of the guide will provide tips for discovering

the most comprehensive foreclosure, REO and distressed homes listings for your homebuyer and

investor clients.

1. Pull a daily list of foreclosures from your MLS: while you won’t capture every foreclosure

that is on the market or about to hit the market, your MLS will still provide a great foundation for your

list of foreclosures. Sometimes banks will not allow their properties to be marked as foreclosures in

the MLS, so you’ll have to try different keyword searches to pull the maximum inventory.

2. Compile a list of all of the banks that have financed homes in your local market:

Contact the foreclosure department of these banks and let them know that you would like a regular

list of pre-foreclosure, foreclosure and REOs to show your clients.

3. Become familiar with the top foreclosure auction houses: Oftentimes the best deals

on distressed homes can be found at auction houses. You’ll want to keep a fresh

list of auction homes available for your investor clients along with dates.

Become the go-to agent for the most comprehensive foreclosure list. (cont.)

4. Contact the top REO brokers/agents in your area: You’ll find that many brokers with

large REO/foreclosure inventory do not have the time to service buyer inquiries. Get to know the

top brokers who specialize in foreclosures and offer to market their listings on Craigslist and other

sites. Also, offer to hold/promote open houses which will help you attract even more potential buyer

clients/investors.

5. Pull a list of HUD foreclosures: Oftentimes HUD foreclosures will not be represented by a

listing agent nor be entered into the MLS. This will help diversify your list of foreclosures and help

make you even more of an asset to investors and serious foreclosure buyers.

6. Contact local real estate attorneys: Get to know the most active real estate attorneys in

your market. Often times they will be representing banks when it comes to sending out notices of

default. In other words, they will oftentimes be the first to know about potential new foreclosure

listings before anyone else.

7. Check your local newspapers: Most counties require that banks give a public Notice of

Default (NOD) or notice of intent to foreclose on a property in a local newspaper.

So be sure to check local papers in the legal notices section.

8. Federal, state and county seizures: You’ll also want to stay in

touch with other government agencies for foreclosures. Most agencies

will provide a list for a nominal fee.

8


B O N U S T I P :

REALTOR.com® makes it easy for your listings

to stand out by placing a “foreclosure badge”

on your listings – visible from the search results

page where potential buyers scan listings and

on the detail page itself. You can also enhance

your listings with Showcase Listings to help

gain more prominence during the search.

Call 888.603.7048

to learn more about

Showcase Listing Enhancements.


9

Get your foreclosure listings noticed in a cluttered market.

In some markets there is a lot of inventory. Making your foreclosure listings stand out is crucial if you’re

going to reach enough potential buyers. It’s also important to asset managers who are searching for

agents to market their listings.

How do you differentiate your foreclosures?

• Make sure your listings are seen on the most popular real estate sites

• Add a foreclosure call out on all of your listings wherever they are seen

• Add a note on your listings offering buyers a comprehensive list of foreclosures

• Make sure your mobile phone number is highly visible and ready to receive calls

B O N U S T I P :

REALTOR.com® is not only the most trafficked

real estate site,1 it also has special programs

designed to direct buyers to your listings so

that they lead to calls and emails to you.

Want your listings to be seen before all others

in your local market? Ask us about featuring

your foreclosures in a position that can boost

your consumer traffic and help increase buyer

inquiries.

Call 888.603.7048

to learn more about how to Feature

your foreclosures first.


10

Get your foreclosures noticed before all other listings.

If your foreclosure listings aren’t being seen they aren’t being sold.

Don’t limit who sees your listings. Remember even if the same people see your listings on multiple sites,

you are building name recognition with foreclosure buyers and asset managers. However, more than

likely most of the sites you advertise on will not have a large amount of overlap since many consumers

prefer to stick with one major site for their property search.

The key to getting calls coming in will always be based on the number of times your listings are seen

online. Getting those numbers up on as many sites as possible will be crucial. Choose the sites with the

most traffic.

1 comScore Media Metrix, May 2010.

B O N U S T I P :

REALTOR.com® offers a special foreclosure

ad campaign and lead capture system. It’s

designed to help promote you as the local

foreclosure specialist to the largest audience

of buyers online while capturing their contact

information.

Call 888.603.7048

to learn more about the

Featured Agent Foreclosure Specialist

Marketing System.


11

Create ads with incentives to contact you.

While letting your listings generate buyer interest is key, so too are other forms of advertising. Start

running ads that get buyers to contact you to receive something of value. Whether you are running ads

on sites such as Craigslist, REALTOR.com® or even newspapers or magazine, having a clear offer is

important to garner direct responses. It’s also crucial to have a lead capture page attached to your ads

and even your website.

What should your ads offer?

• Get my FREE list of Bank Owned – REOs – Foreclosures

• Get my FREE foreclosure buyer guide include glossary of terms

• Get my list of pre-foreclosures and learn about properties before they hit the market

• Receive my FREE daily list of reduced priced homes and foreclosures


Expand your social network.

The latest NAR consumer study reveals that 53% of transactions are conducted through social

networks.1 More than half of real estate purchases are through someone who knew the REALTOR® or

through a referral. Now that these social networks are expanding from clubs, political organizations,

and school activities to online social networks, you and your listings need to be there as well!

What’s even more revealing is that many agents who specialize in foreclosures are now networking

with other foreclosure agents across the U.S. Essentially a nationwide foreclosure referral network

has been created. Now asset managers and bank are asking agents if they would recommend other

agents in other cities across America to represent their foreclosure listings.

Why are online social networks crucial to your business?

• 90% of consumers use the internet to search for a home.2

• Close to 177 million Americans are active on social networking sites.3

• Nearly 74% of those users are active on Facebook®, the #1 social networking site.3

• Facebook® has the highest average time spent using per visitor at 4 1/2 hours.3

1National Association of REALTORS® Study.

2National Association of REALTORS®, Profile of Home Buyers and Sellers, 2009.

3comScore Media Metrix, May 2010.

12


13

Bonus tips for promoting your listings to social networks.

1. Set up an account on free sites such as Facebook® and LinkedIn® and don’t forget to remain active

with it. As the old saying goes, out of sight, out of mind.

2. Log-in a few times a week to check in on folks. Staying active is important as you never know when

someone in your network is thinking of real estate or someone might refer someone to interested in

foreclosures or investment property.

3. Provide up to date information about market conditions and things of value about the local

community and stay in-touch with your network just as you would a friend with personal notes.

4. Never spam your network with listings: one of the biggest mistake agents make is promoting their

listings on their profile wall everyday so that their listings appear to their entire network in the area

where comments appear. For the majority of your network who are not currently active in real

estate, this can be an annoyance.

5. Simply post a link to your listings on your profile in a way that does not spam your network.

REALTOR.com® now offers a free Facebook® application that will promote your

entire foreclosure listing inventory in an unobtrusive manner.

And by the way, home buyers are also able to share your listings with new social networking “share

buttons” now installed on every listing on REALTOR.com®.

Call 888.603.7048 or join us at

www.Facebook.com/realestatemarketer to get the app.

B O N U S T I P :

REALTOR.com® offers a program that will

enable you to work with buyers who sign up for

automated listing alerts on the site when new

listings come on the market. Every time these

home buyers receive an automated new listing

alert from REALTOR.com® your name and

contact information will be attached. You will

also have the ability to contact them, update

their search and offer your foreclosure listings.

Call 888.603.7048

to learn more about Buyer Assist.


14

Establish a secondary lead flow source.

Marketing your listings and yourself so that you stand out as the foreclosure specialist in your market

will always be crucial to your success. However, your advertising and marketing efforts will tend to ebb

and flow depending on your campaigns and messaging. It’s always a good idea to find other sources

of leads to ensure that you have a steady flow always coming in. This is also important when working

with asset managers and banks who want to know what you are doing differently to attract buyers.

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Hi Connie Consumer,Here are your most recent Search Assist results. Ifyou don’t find what you are looking for please contactme to help refine your search and provide homes youare interested in.

As new listings enter the market you will be amongthe first to know with updates sent several times aday. To view all listings that match your search go toREALTOR.com®.

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Foreclosure Marketing Checklist:

Use this step-by-step foreclosure marketing checklist to help sustain your campaign.

Now that you have a comprehensive plan in place, now check the list to ensure that you are:

1. Able to demonstrate how you can help guide consumers efficiently thru the foreclosure process.

2. Providing an offer such as “Get my list of the hottest, value priced homes or foreclosures” or

“Get my Guide: everything you need to know about foreclosures”

3. Available to help consumers understand the foreclosure market and what they will need to do

to move forward with a transaction.

4. Creating messages that reinforce your foreclosure expertise across all marketing venues both

offline and online.

5. Getting the foreclosure message to your social network so that you are the one they ask when

there are questions about foreclosures.

6. Implementing a system for capturing and responding to foreclosure leads.

7. Updating your website and business card to reflect your foreclosure expertise.

©2010 REALTOR.com® All rights reserved. rdc_foreclosure marketing system_061710

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