Real Estate Marketing Idea; Farming Expired Listings

If you think there’s no good way to increase your listings and sales you need to think again. The best real estate marketing idea going may be farming expired listings. Here’s why!

Expired Listings Are Hardly A Secret, But…
Expired listings are probably expiring from your Multiple Listing Service even as you read this article. It’s a common occurrence that happens daily, from coast to coast. Many agents know about them, yet choose to do absolutely nothing about it!

Many agents assume other agents will be farming them, which is exactly why farming expired listings can be so lucrative. If a majority of real estate agents assume other agents are pursuing them there’s no limit to how many you can covert to new listings!

So, although expired listings are hardly a secret, they are hardly over worked!

Expired Listings Are Plentiful
Just how plentiful are expired listings in your area. Let’s take a moment and find out.

1.Log into your listing system
2.Do a search for expired listings for all of last month
3.Now divide that number by the number of days in the month to get a sense of the average number of listings that expired daily.

No matter what the number is it represents an opportunity for an entrepreneurial type agent to create business where they had none before. Unlike what you might think, owners of expired listings are usually eager to get on with the business of re-listing and selling their properties.

Many are willing to make the kinds of concessions needed to get their homes sell during a new listing period. For example, they may be willing to paint the exterior of the house and do other things that create curb appeal, or reduce the price on their properties to make them more competitive during a new listing period.

Owners of expired listings can be some of the nicest people you’ll meet, and they make great clients. They’re usually Realtor friendly, knowledgeable about the listing and selling process and have a better appreciation of what it will take to get their properties sold during a new listing period.

Expired Listing Systems
When farming expired listings I recommend that you go with a proven real estate marketing script. Essentially, the system will contain step by step instructions on how to effectively convert expired listings to new ones. The better ones contain all of the letters, tools and information you’ll need to succeed!

Some expired listings can be pretty costly, but don’t get caught up in the mistaken belief the more expensive a product is the more effective it will be. On the contrary, simple and inexpensive can be deadly effective!

There are many good reasons why farming expired listings is a good real estate marketing idea, but it basically comes down to this! When you have listings you double your chances of making money, whereas no listings could amount to a short career in real estate sales.

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Real Estate Marketing: Personal Realtor Marketing Systems Make Good Business Sense

A Personal Realtor Marketing system can provide the ultimate method for listing properties. Like farming expired listings, for example. If you can mail letters you can get listings!

Many agents know about expired listings and how profitable marketing them can be, but opt not to pursue them. I’m not sure why, but there inaction can definitely be your gain!

It’s not rocket science, but before you get too excited be forewarned that not just any old expired real estate listing letter will do. Effective ones must have enough information on them to get the most desirable response; a phone call or email message to you.

But if you’re going for the ultimate most wanted response, an actual listing, your letter must be outstanding. Hint! A FREE cookie cutter letter won’t cut the mustard if you are competing for a $300,000.00 listing.

Fortunately, there are some pretty good ones available to choose from at reasonable cost. But if you’re bound and determined to create your own then have at it.

However, the going will probably be slow and you’ll lose valuable time and customers to competitors while refining it; neither of which you can afford.

There’s another big upside to marketing with pre written letters; they’re time tested and can be effective in any state, county, or city in the United States. Effective ones can generate a steady stream of warm, responsive prospects month after month; all interested in one thing, listing and selling their properties. It doesn’t get any better than that!

Some letter writing come with complementary letters. If you like the idea of repeat mailings go with a letter series, but if you’re not interested in repeat contacts go with the single letter approach. Either way can be effective and there are pros and cons to both, but ultimately the choice comes down to your personal preference.

Your expired listing letter should at a minimum have your full name, address, and phone number(s), and other contact information. It should be as grammatically correct as possible without sounding unnatural and spell checked to be free of misspelled words.

Your letter should also have lots of white space. What I mean is don’t have run on sentences in paragraphs seemingly without end. Instead, have short, 2-3 sentenced paragraphs.

For example, every paragraph on this page, excepting this one, is 3 sentences or less.
Also, use bullets whenever possible to break your sales message to help your reader better comprehend it.

Let’s face it – you need listings. The more you have the more money you’ll make. On the other hand the fewer you have the shorter your real estate career is likely to be.

A good real estate marketing system, with expired listing letters, can help you get listings period!

If you’re a new agent it can help you get off to a good start. You’ll end up contacting a lot of “known” sellers in a relatively short period of time.
And if you’ve been licensed for a while, but don’t have the volume of business that you want a real estate listing campaign can supercharge your marketing results.

It’s all about contacts. The more people you market your services to the sooner you’ll get to the people that you can “close”.

Imagine your many listing signs dotted throughout your community. Now, create a plan to make it happen. They will give you instant credibility and help you generate even more listings and make more sales.

Everybody likes doing business with a winner and a good real estate listing campaign can help make you one.

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Real Estate Letters; Low Cost, High Profitability

Mailing real estate letters is one of the best real estate marketing strategies a new, or even veteran agent for that matter, can employ. Really, is there anything easier than mailing letters?

So, it shouldn’t surprise you when I say my success as a real estate sales person was largely due to my letter writing campaigns. But success wasn’t instant. In fact, it took a year or so to incorporate all of the elements that good letters should have.

Next, it took me a while to develop the rhythm of when to mail, what to say, how long my letters should be, how often to mail and other things like that. But once I figured out the dos and don’ts my results skyrocketed! At my peak I averaged 2 plus listings a week!

After all, if the key to selling real estate is location, location, location the key to getting prospects to sell real estate to is contacts, contacts, contacts. The more contacts the more prospects, and the more prospects the more real estate you’ll sell.

Sounds simple enough, but writing good letters can be difficult and time consuming. Go ahead, try it right now and I can almost assure you that the blank computer screen in front of you will get bigger and bigger the longer you sit trying to hack out a good letter. Sometimes just completing the first sentence is a major accomplishment!

However, when you know the 4 elements of writing a good letter they become just a tad easier to write. Specifically, your letters should; short, sweet and to the point preferably less than a page long.
2.have lots of white space; short sentences and paragraphs that are only 2-3 sentences long.
3.spell out the benefits of doing business with you.
4.have a call for action telling the readers what you want them to do after reading your letter.

Still, writing dynamic letters that get results is easier said than done. I actually got to a point where I avoided writing letters (maybe that’s why some agents never get started) until I discovered something better … prewritten letters and ghost writers.

Prewritten letters are just what they sound like; letters written by others that you buy for your own use and signature. They’re fairly inexpensive, easy to find and the best part is that you own them as though you actually wrote them.

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Fiis Raise Stake In Real Estate Stocks

The booming real estate market has caught the fancy of foreign investors and they have raised their stake in a majority of realty firms listed on the bourses. However, some analysts believe these stocks are among the most expensive in the world.
An analysis of the holding pattern of foreign institutional investors (FIIs) in 22 major realty firms shows a majority of them raised stake in the April-June quarter compared with their stake in the previous three-month period.
FIIs increased their stake in 15 companies, including Unitech, Ansal Housing, DS Kulkarni and Indiabulls Real Estate. However, they decreased their holding in seven companies DLF, Atlanta, Era Construction, Lok Housing, Mahindra Gesco, Madhucon Projects and Unity Infrastructure.
The real estate sector in India has witnessed a boom in recent times led by an increase in purchasing power of people, relaxed lending norms by banks and housing finance companies and the growth in retail and IT sectors.
The buying of shares by FIIs in these companies comes at a time when a few analysts believe the country’s realty stocks are among the costliest in the world.
Global investment services firm Standard & Poor’s has said real estate stocks in India are the most expensive and give lower returns than most emerging and developed markets such as China, Singapore, Hong Kong and Australia.
A comparison of price to earnings (P/E) ratio of stocks from various countries showed that valuation of property stocks from the US and the UK moved lower, while those from emerging markets such as India continued to grow.
The P/E ratio is considered a valuation benchmark of a stock, where a higher ratio indicates an expensive stock, while a lower P/E ratio signifies a cheaper stock.
FIIs consolidated their stake by an average of 1-2 per cent, except Indiabulls Real Estate, in which their holding jumped 6 per cent to 44.96 per cent as on June 30 from 37.34 per cent at the end of the previous quarter.

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Stages Of A Real Estate Market

The stages of a real estate market are most often recognized only after the fact. Even when all the historical data confirms that a downturn is in progress, most speculators won’t stop gambling. Real estate speculators call themselves investors because they believe they are taking calculated and controllable risks when purchasing homes.

In the mid to late 1990’s real estate investing was virgin territory because it was easy to use formulas of 60% to 70% of Fair Market Value minus repair costs to determine an offering price for a seller. The “chant” was “Get as many properties under contract because they can only go higher!” In the earlier years, buying properties cheaply enough allowed them to be rented and they supported themselves while the investor simply collected checks. In only three years, a groundswell of speculation led to frenzied buying. Families looking for a home to live in got caught up in the buying panic because of the scarcity of homes for sale. The market quickly and efficiently climbed with the help of lending institutions who were offering low interest rates, 100% financing, with no proof of the buyer’s income. Almost no other speculative opportunity in history caught on as fast because of real estate investors needing little or no money down and ease of loan qualification for “retail buyers”.

Even when many of the potential borrowers had credit issues and minimal down payments, the lenders created more lenient loan requirements. The number of single family homes that were owned by investors rose from 2.5% in 1995 to almost 29% by the end of 2006. Effectively, these investors took away at least 26.5% of available single family homes with the intent of selling them at higher prices to retail home buyers.

Here is a summary of the stages of a real estate cycle:

Stage #1 This is where supply closely equals demand and home prices fluctuate between +/- 3% per year and prices are basically stable over a five year period.

Stage #2 Here demand out-strips supply, or a “sellers’ market” develops because of fewer homes on the market. This can be created by investor speculation.

Stage #3 – Here demand far out-strips supply with resulting large annual price increases. Homes now offer new speculators more attractive yields than stocks and money market instruments. More so called “investors” begin buying multiple properties with expectations of selling for huge profits because of the low down payments required for mortgages or using creative financing. The market begins to feed on itself as homeowners begin to rush to take profits.

Stage #4 As home prices become unaffordable, interest rates increase making financing costs too expensive for homeowners to purchase, and investors have inventory that can’t be sold. Seemingly everyone tries to sell and the market readjusts to former market conditions by pulling back as much as 30% to 60% of peak values as the market begins to stabilize for 3 8 years.

Summary – Based on the current market conditions and continuing available data, the real estate market is well into Stage #4. There is no way to determine how long this swing will last but historically they have lasted for 6 to 15 years. This stage offers huge opportunities for real estate investors and homeowners alike that want to purchase homes either for living in for 5 years+ for homeowners, or for “flipping” for investors. Both homeowners and investors looking to buy a property need to be very selective about how much they pay for a property, the amount of costs to rehab it, how they will be financing it, how long they intend to stay in it, the carrying costs, other properties currently listed on the MLS, and neighborhood conditions. Unfortunately, retail buyers who wait to get the lowest possible price often wind up paying higher mortgage rates which offsets the cost savings by waiting, especially when you include their cost to rent, and the interest tax-deduction that they lose by not owning. Investors will have to buy low and sell low, while the retail buyer has become “king of the mountain” in picking the best possible home for the lowest price.

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