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Door Knocking for Short Sales

Reblogger Peggy Santmyer
Real Estate Broker/Owner with The Santmyer Team

So Basic, so True.

Original content by Jacob Swodeck

In the past (late 1990's), door knocking on properties in default was a staple for any blue collar realtor working the pre-foreclosure sector.  We had a whole army assembled and equipt with data, scripts, knowledge of available options, compassion, and savvy.  You never know when you're going to get a cigarette flicked in your eye (it has happened) but you did it anyway.  Evenings and weekends were prime time and you expected to put in some work in order to continue your success.  At one time, we had over 200 listings with over 90% being short sales.  Many were obtained as a result of door knocking N.O.D.'s. 

As a national short sale trainer and a top active agent, I find much less door knocking being done as a major part of realtors' business plan.  However, it never ceases to amaze me how many times the top short sale agents in the respective towns I visit are "door knockers".  I always ask, "so, how did you get so many listings? What's the key to your success?"  I sit back and either expect them to say that they door knock or spend major dollars with direct mail campaigns. 

One weird fact is that it seems there is a stigma attached to "door knocking" as well.  People who door knock or who refer to others who door knock tend to consider it "old school".  Almost like it is something only people with no other marketing options do.  That couldn't be farther from the truth. 

At the doors is where real estate business thrives.  Real people with real problems are out there.  Carefully constructed scripts and conversations along with a healthy knowledge of the subject matter can breed fantasctic results.  There is no short cut to success in real estate in this downturn.  Homeowners are desperate for knowledgable Realtors who will put the needs of their prospects first and help them find the most favorable solution to their real estate crisis.

Below, I have laid the groundwork for the mind-set for the 4 levels of door knocking your prospects:

1. Pre-foreclosure profiling - Homeowners who obtained risky loans during the span of 2004-2007

*Soft passive "Trusted Advisor" approach, informing homeowners in the area about foreclosure relief    options in case they know someone who may need more info (wink wink)

2. 30-60 day late on mortgage payment (credit lead)

* Soft semi-passive "Trusted Advisor" approach, in the area sharing current info on foreclosure relief options, laws are changing, stay informed, someone you know may need our help (wink wink), asking them if they have any questions about loan modification, short sales or any other relief options, positioning yourself as THE source for this info.

3. N.O.D. has recently been filed / recorded

* A little more forthright, confirming an N.O.D. has been filed.  Asking them if they have a "bullet proof" solution they are working on, offering a short sale as a plan "B", having conversation, not being pushy, talking about timelines and ramifications if their plan possibly fails

4. N.O.T.S. has been filed / recorded 

* Strong yet very polite, confirming N.O.T.S. has been set, making sure they understand what that means, politely probing their current status (many will be attempting to modify their loan), offering a plan "B" to increase their chances of avoiding forclosure, it helps to have a very good understanding of the Making Home Affordable program (www.MakingHomeAffordable.gov), being persistant.  This type of lead is not for a wimpy agent.  Got to know your stuff and be strong. 

Well, Ihope this post either confirms what you're doing (if you're a door knocker), or convicts you to get out there and help some people if you're not door knocking.  There is plenty of business out there...and you're not going to get it just by being on facebook :)

Show All Comments Sort:
Jean Hanley
Coldwell Banker Kivett Teeters - Hemet, CA
Specializing in Folks Who Want To Buy/Sell Homes

Peggy, I am SO happy to hear you say that door knocking is not "old school".  Having been in this business since the late 70's, that is what I cut my teeth on, and although I have been a little lax on door knocking, I am still a heavy "farmer"--yes,another old school term.  Thanks for the useful tips.

Nov 28, 2009 01:27 AM
Christine Hynes
American Capital Corporation - Laguna Beach, CA
Orange County Senior Loan Consultant

Peggy,

Great post!!   It is amazing that getting good information that is accurate is tough in this market.  My experience is on the lending side, which I love, and spending time everyday learning something new.   I have a large network of agents that work with me and have over the years, my network is still growing.  I also have a couple Real Estate Attorneys on my team and a few CPA's to help with advice for my own knowledge.   I do spend alot of time helping my agents with education in the area of Loan Modifications and also Loans, as both continue to change almost daily.  It is tough for me to keep up and I spend many hours each week reading guidelines and talking to underwriters.

Nov 28, 2009 01:33 AM
Anonymous
Eddie Petrie

Peggy,

Outstanding. To the point and right on. Too many people, agents and investors alike are focusing on the low hanging fruit while missing the point that a little, extra hard work will go a long way to building their business. Yes, door knocking is "hard" but I would rather door knock than sit in a trench in the Iraqi desert. I would also rather spend my time talking to a real lead than spending thousands on "potential" leads. Plus, I know that maybe I will be competing with  1 or 2 other agents or investors. Maybe.

I would love to see one of the scripts so if you could email one over that would be great. One tip I love to utilize is visiting craigslist to see if any of the weekend yard/garage sales have the same addresses as my NOD leads. If I can't find them on craigslist I just go out early Saturday and I can't tell you how many people I find who are having a yard sale that are in some kind of trouble. I probably pick up 2-3 new clients every weekend this way.

Again, great job in showing people that they can't just sit back and wait for the clients to come to them. And...so everyone knows I settle on average 7-10 deals a month and still door knock. So door knocking is not just for the entry level agent or investor.

May 13, 2010 02:49 AM
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