Chapter 2ProspectingHow to Market, Advertise, and Promote

I. Prospecting

A. Finding Sellers and Getting Listings

New listings are the lifeblood of all real estate offices

Listing properties for sale keeps you in business.

1. The Internet Your company and personal website are in are

indispensable tools for finding sellers

Your website should contain as much useful information as possible: Properties you currently have for sale and price Properties that have just sold and sales price Your biographical information A photo of yourself A way for your website visitors to sign up for your newsletter

Listings can come from: Emails

Texting

Referrals

Social networking sites

Realtor.com

Zillow.com or Truila.com

2. Direct Mail Direct mail is a tried and true method of marketing to

your “geographical farm”

Postcards are a very useful way of getting your name out to the public

Let potential clients know what the prices are for homes in their neighborhood by leaving them a CMA

Comparative Market Analysis (CMA) is the data that gives the sellers a price range for their home by comparing the details of similar homes in a particular area that have recently sold

3. Expired Listings Your local MLS has expired listings that let you know

that someone was trying to sell his home, but was unsuccessful

All contact information is available to members and it’s up to you to convince the seller to try again, and why you are capable of selling the home

4. For Sale By Owners (FSBOs) FSBOs frequently place their property for sale in the

classified section of the newspaper

Yard signs are a great way for you as an agent to find contact information without asking

Call FSBOs and offer them a free CMA or Transfer Disclosure Statement as a gesture of goodwill

Craigslist is an excellent resource for finding FSBOs

After trying to sell their own property, owners may be delighted to hand over the responsibilities and work to a professional such as yourself

5. Professional Business Contacts

Title company employees you may be acquainted with can tell you when a home drops out of escrow

Probate Attorneys deal with heirs to property and can keep you abreast of litigation on a property that may be coming up for sale

Divorce attorneys, without breaking confidentiality agreements, may be helping their clients by referring them to a qualified real estate professional

An OPEN HOUSE is a planed period of time during which a property for sale is held open for public viewing

Open houses are excellent prospecting tools

An organized and well presented open house assures potential clients that you’re an agent with a sales plan

B. Open Houses

C. Finding Buyers In prospecting for sources of buyers, try:

Open Houses Emails and Texts Internet Search Engines Postcards FSBOs Referrals Professional Business Contacts

D. The Art of Developing Referrals

To build clientele and achieve a high referral business, your buyers and sellers must be kept fully informed every step of the way in escrow

Goodwill is earned by making it known that you have the client’s best interests in mind

You should demonstrate interest beyond the close of escrow

Helping buyers and sellers make the moving process less stressful will insure their gratitude and lead to repeat business and referrals

II.Advertising and Promotion

Advertising and Promotion For many real estate offices, advertising is

the only way to communicate their existence to potential buyers and sellers

Advertising is BOTH a listing tool and a selling tool

As the listing agent, you should always send a copy of the ad to the seller

• It is important to keep track of the ad results by

using a Traffic sheet

A. Real Estate Advertising

It gives the reader information about the benefits and specific features of a property

B. Advertising Media

Advertising is more effective for selling a company’s image than for selling just one individual property listing

Selecting the best media to get a positive reaction from the reader is important

1. Electronic Media

Internet Sites – the internet is one of the most important types of advertising media available to real estate companies

Radio and Television – only high costs limit the use of radio and TV, as they are especially effective for the multi-office operation looking to promote the company

2. Walk or Drive-By Advertising

Shopping Guides – free homebuyers’ guides

Yard Signs on Property – a “For Sale” sign with riders attached, “In Escrow” or “Sold” or “Bought”

Billboards/Outdoor Advertising– freestanding signs along streets and large billboards on buildings are eye-catching

Window Displays – large ads with pictures of properties displayed in the windows of your office

Bus, Car, Bench, & Taxi Signs – transit advertising can be locally productive in getting brief message to the general public

3. Paper Media Strategies Newspapers– a very effective medium for residential

home sales Classified Ads Display Ads – sells by using both graphics and words

Magazines – more costly, Trade and General Magazines are an important form of print medium for any brokerage

Direct Mail

Club, Religious, and Institutional Newsletters

Business Cards, Letterheads

Giveaways – calendars, maps, notepads

C. Advertising Pointers

Be consistent

Resist the temptation to overstate a home’s appeal Remember, the purpose of advertising is to meet the

clients, to bring them into the office and build a rapport with them

When deciding which media to use, the goal is NOT to reach the largest audience, BUT to reach the greatest number of potential buyers at the most economical cost

D. Writing Effective Ads

The AIDA formula is time-tested:

Attention – use a clever heading or opening phrase

Interest – get the readers to continue reading by maintaining interest and curiosity

Desire – stimulate the reader’s eye with pictures or words to paint a picture of the house

Action – compel action at the close of an ad

E. Budgeting for Advertising

No one makes money on properties that aren’t selling

You can’t sell a property without some form of advertising, and all advertising costs money.

F. Keep Evaluating Advertising Effectiveness

• You must have an evaluation system whereby you can determine which ads work and which ads need help

• Each call about an ad should be entered on the Traffic sheet showing its source and which agent answered the inquiry

G. Consumer Finance Protection Bureau (CFPB)

Advertising of real estate credit is under the jurisdiction of the Consumer Finance Protection Bureau

The Truth in Lending Act (TILA) or Regulation Z, requires full disclosure of credit costs as a percent as well as total finance charges

If any financing term is used in advertising, the ad must also mention the annual percentage rate (APR) and all other financing terms.

CHAPTER SUMMARY

• Prospecting• Finding Sellers• Open Houses• Finding Buyers• Developing Referrals

Advertising and Promotion Real Estate Advertising Advertising Media Advertising Pointers Writing Effective Ads (AIDA) Budgeting for Ads Keep Evaluating Effectiveness CFPB