The first time I heard a buyer say they thought a short sale was someone who needed to sell quickly (in other words, they thought the sale would happen in a short period of time), I giggled a little. When I thought about it, I could totally understand the thought pattern. The reality is nearly the opposite....a short sale can be anything but short!
The term actually refers to the current owners needing to sell and being "short" the funds it will take to pay off the lender. So, the current owners need to negotiate with their lender an alternate repayment plan or forgiveness of the remaining debt. In today's market, banks are doing anything to avoid foreclosures, so we are seeing more and more short sales approved; very often with full debt forgiveness to the sellers.
This is truly a win for the sellers. Sure, their credit takes a hit. But, their bank accounts and immediate financial future is far better off than if they were to go through a foreclosure. And, it is expected that many of these sellers will be eligible for purchasing again in the not so distant future.
Buyers, on the other hand, need to be willing
This is rebloged from an expert in the mortgage industry.
I don't like delivering bad news, and I know you don't like receiving it (I get unsubscribes). At the same time I want to tell you what I see: There are some serious (additional) problems right now, directly affecting real estate. It looks to me like it's going to get a lot worse worse before it gets better. Yet, when doors close, others open - there are resulting opportunities as well (See below). Here are some of the reasons/symptoms: - 1.5 million homes in foreclosure
I don't like delivering bad news, and I know you don't like receiving it (I get unsubscribes). At the same time I want to tell you what I see: There are some serious (additional) problems right now, directly affecting real estate. It looks to me like it's going to get a lot worse worse before it gets better. Yet, when doors close, others open - there are resulting opportunities as well (See below). Here are some of the reasons/symptoms:
- 1.5 million homes in foreclosure
I’ve been in the online lead generation industry for nearly five years now, and in our business, that would make me a senior citizen. I’ve worn many different hats at Reply! — from starting out on our retail real estate sales floor, selling to real estate agents, to managing our entire retail real estate sales and service departments. I’ve also worked with thousands of real estate agents from a sales and customer service standpoint. There is no doubt that over the years I’ve heard my share of both positive and negative feedback, and in all the success stories that I hear there is one common theme; Internet leads only work when they are worked.
So let’s evaluate why leads don’t close. Is it the lead buyer not properly working the leads, or is it the leads themselves? I believe the answer is, “Both.” Some of our clients tell us our leads were a waste of time, while others depend on us to hit their yearly sales targets and are very profitable. Both are right, depending on how leads are called and nurtured.
The lead provider has two responsibilities: setting the right expectations and offering controls for the buyer to segment. It is the provider’s job to communicate that on average it will take a pipeline of 40-50 Internet leads before you should expect to close your first transaction, and after 6-9 months you should be able to close anywhere between 5%-10% depending on your individual close rate. This means over a year period of time, if you purchase 100 internet leads, you realistically should expect to close anywhere between 5 deals on the low end all the way up to 10 deals on the high end. At least 90 leads, however, will never turn into anything. Once you know your close rate, you can predictably and systematically increase the volume of sales per year, simply by purchasing more leads.
It will also take work, follow-up, and persistence to close an Internet lead. Keep in mind that typically the Internet consumer is less loyal and less willing to commit than a traditional referral. Agents that do the best are focused on providing value in every step of the sales process.
Assuming the right expectations are set, and you decide to participate in a lead program you should know that follow-up can be the difference between success and failure. Our most successful clients tell us that Internet leads require time, energy and need immediate and personal attention. An immediate email to the consumer and a phone call speaks volumes about your professionalism as an agent and helps build rapport and confidence along the way. You would be shocked at the percentage of agents that wait 2 days to return a phone call, or never call for that matter.
We also need to discuss lead quality. From time-to-time, one of our customers becomes angry over “poor lead quality.” I have a rule that I follow before I call a client back. I take a snapshot of the last ten leads we’ve sent, and I call them myself. The same result happens every time; I’ll be unable to reach one lead, leave voicemails for six, and I’ll speak with two to three people that want to talk about a real estate transaction. Two to three appointments set from twenty leads should ideally result in one transaction over a period of time, and we arrive at our 5% closing ratio.
If you decide to invest in online, performance-based marketing, create a game plan regarding how you’re going to work the leads. Call the lead 3 times a day for 3 days before writing them off, and then put into your drip campaign. You never know when they may contact you back. Also keep in mind that one sale will typically cover the program for 1-2 years. We also offer a success guarantee to ensure that you get a positive Return on Investment from using our service. Visit www.replyrealestate.com for more details.
Many variables can affect your experience with Internet leads. One thing is clear—Internet leads are a predictable and measurable marketing investment, and will only work for if you go into it with correct expectations and are willing to work the leads. I’m confident if these are done, we can make it profitable for your business.
First of All, I need to know how to change this website to make it look like the newer ones......I have not been paying attention to as many things as I once did I am a 3 job person now...........
I am going to put this very bluntly....................I was what was know as a "High Maintainence" Realtor.....thru what we knew as the "Bubble Days".........I worked for on big company they have a big blue rock for 17 years (lots of office closings here) then the the red white and blue one for the past 3 years..........many closed also.......
I never had to worry about leads always could sustain my referrals and sphere of influence did relocation and made lots of friends along the way. Many of my customers are as we say upsidedown, I hear our State is going out of business like California.....................not true! Many of us are New Yorker's and will survive.
Yes, we have learned a lesson the past year. I learned to use my degree to go back out and sub in the elementary school and also how to get a few more licenses' and do some refi closings for the Title Companies. Also, loan modifications..................we are going to come back.
In the meantime please help me with a big decision I need all comments and advise from all you professionals. I am a Broker and want to open my own/ In NJ you must have a brick and mortor office so that is extra expense.
I need to make a decision on Leads who to use.............I see so many advertised and don't know which is telling the truth...........if a lead generator is servicing so many agents how do you succeed.
I can and have designed the website myself and have had Point 2 agents since they started. I need to know if anyone has used RED X it looks wonderful..................please try to help me!!!!!!!
The Garden State will be back........................soon? I also would be open to picking a name for my office...........can't do franchise now................understand......
I have been in Real Estate for over 20 years, I am a Broker with Amabile Realty, Monmouth County NJ just recently joined active/rain-I will try to keep it interesting. We got unbusy this year and hope for the best. I personally will be learning online about other markets this winter, I want to talk about everything not just real estate, family, friends, people in need how can we be of assistance and more. I sure can use more friends in this world, how about you? Jokes I like them.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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