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Old December 3, 2014, 10:43 AM
ron lafuddy
 
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Default Re: The Power of EGO and...."Already Done"

Quote:
Originally Posted by clawJAMMER View Post
Yes, you're spot on Ron. Realtors are generally cheap but like most businesses, 20% of realtors are doing 80% of the business I found out.

Locating the 20% is the key. Those are the 'movers-n-shakers' who will generally spend money to make money and have some longevity.

About 6-7 yrs ago I was doing what Don has described only with a different twist.

I found 99% of the realtors in my general vicinity didn't want to spend any money marketing houses other than relying on sticking a sign in the yard and the MLS (multiple listing service).

And the average house in my area that was listed was for under $100k.

So, I thought about targeting FSBO's (for sale by owners) instead.
Figuring they didn't want to list their house with a realtor to save the 6% commission or they were close to foreclosure and didn't have any equity in the house anyways to pay 6%.

I'd call or drop in on a FSBO - they initially assume I'm interested in their house, I am, but not as a buyer.

I'd take photos inside and out, use WMM video and put them up on their own website -their house address 747NMain.com with a description just like a realtor would normally do. As an upsell I'd even do the marketing for them. I tell them all they have to do is answer their phone.

I put their phone # in the video and on the website, NOT in the ad. That way if their phone rang about the house they'd know whoever was calling had already seen the video and would be more interested than just a random caller from the sign in the yard.

I replaced the FSBO sign in the yard with the website address only, no ph # on it, ex: FSBO Visit www.747NMain.com w/ black and red lettering on a white background.

I charged $249 for the video and website and another $50 to market it on various websites for up to 6 weeks, using mostly Craigslist.

I'd tell them $249 or $299 is a ton cheaper than 6% of their selling price and a realtor isn't going to do what I'm willing to do to help them sell their home for a fraction of that. A realtor is just going to stick a sign in the yard, list it on the MLS and that's it, and wait for the phone to ring. Maybe a classified ad.

I've dealt with realtors for years and that's how 99% of them operate. They figure 3% is better than nothing after they split the 6% with another realtor who brings a buyer to the table. Then that 3% gets split again when they have to pay their brokerage 1 1/2 %.

Anyways, it was a struggle mostly due to the fact that the ave house in my area is under $100k. Trying to convince a homeowner with $4000 equity in a $71,000 house is nearly impossible whereas a homeowner in a $150,000 house thinks it's a bargain. But I had to travel a distance looking for $150k FSBO's with no guarantee burning gas and time in search.

I did sell a half dozen FSBO's for homeowners using this technique over 3-4 months. Just not enough $ to sustain me and I eventually lost interest. I tried raising the price, lowering the price and settled on the $249.

I received great compliments from every homeowner whose house 'I sold' with the video and website and they all said without that they'd still be trying to sell it.

I also did several of these on top of what I did on my own with Jason Hatchett, a member of this forum. I'd secure the property, take the pics, description and pass them on to Jason and he'd build the site and we split the fee. Again, not enough biz to sustain us.

Remember, this was quite a few years ago and video was in it's infancy compared to today where it's almost a necessity when marketing a property.

Maybe Don's idea today would fly better for realtors in higher end listings compared to several years back. I never had much success dealing with realtors period, as a wholesale investor or selling them video marketing.

Glenn

Glenn,

Thanks for giving some thoughts on this idea based on your experiences.

I think this might work well in the $200K and up market but I'd have to
test it.

Tell you what I like about your approach with the FSBO's. It got you in
the door talking to them about price, terms, equity and their financial
position. It'd be pretty easy to slide an option agreement across the
table, (where it's not illegal) if they had some equity to work with.

You could then market the house, just like you'd be doing with the video
& website, but you'd stand to profit in the thousands of dollars from your
endeavors, instead of a couple of hundred.

Yes, you'd have to search for these opportunities, but they are out there.
And, you'd have NO competition.

Ron
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