Hi, and thanks for reading. In my last blog, I said that it is paramount to establish trust with homeowners that are in pre foreclosure. To do this, it's important to put your message in front of troubled homeowners on a regular, repeated basis, and answer their fundamental question: WHAT'S IN IT FOR ME? Focusing on your credentials and features are not enough. Instead, a troubled homeowner has to know that by working with you, there are emotional benefits such as the ability to sleep peacefully at night and the relief of letting go of the ton of bricks on their shoulder.
Now I'll delve into the topic of how to approach these troubled homeowners, whether by mail, phone or in person.
In this entry, I'll explore door knocking. It takes a special kind of person to knock on doors, but that talent can yield tremendous dividends. A regular client, a Century 21 broker in California, is adament about dispatching his associates out to the homes in person. "We have only one shot to get through to these people", he says, "and we don't want to blow it."
In short saless, nine-tenths of the deal involve negotiation. You'll have to make an emotional connection with the parties involved to close the deal, and what better way to build that rapport than to deliver your message of a fresh start in person?
It is said that consumers are bombarded with over 3,500 advertisements a day in one way or another. It is difficult for even the best marketer to cut through that much advertising clutter. With so many ads offering to save a homeowner from foreclosure, a realtor or investor that takes the personal approach by taking a troubled homeowner by the hand and walk them through their alternatives will be a winner.
How many radio or newspaper advertisements can pull a football fanatic out of his chair, during an exciting football game, to see or hear your advertisement? The answer is NONE. One-on-one door knocking is powerful and effective because it searches and finds your prospect and delivers your message face-to-face. No other marketing medium has that impact. How do you harness that power? Step right up to their front porch, take a deep breath, and knock on their door. When the owner pokes his nose out and asks you what you want, you have to know what to do next.
Getting Inside
(1)Have a script prepared. First impressions are especially important when talking to a troubled homeowner because of their emotionally charged hardship. You have a small window of opportunity to introduce yourself as someone that genuinely cares about their situation. It's like theature. To create the emotional excitement of the audience, the actors are scripted. In the same way, to create an emotional connection and build trust, you should be armed with a script. Many investors mistakenly wing the first words out of their mouths in a pre-foreclosure deal and never recover. I'm a firm believer that even the best salespeople should have a script.
(2)Ask to come inside. Many novice investors erroneously think that the deal is going to be made right on the porch. A troubled homeowner will work with you only if they trust you. If you launch into your pitch on their porch, you will only convey that you are a slick salesperson that wants to profit from their loss. After the preliminary introduction, try to face them in the place they feel most comfortable – the kitchen table.
Making Conversation
Talk for a few minutes. It's important for the homeowner to view you as a person, not as an investor. Share some information about yourself and ask for the same in return, so that it doesn't feel like some kind of akward "first date."
Avoid using the term 'foreclosure' at all costs. "I noticed that you weren't keeping up with your payments" or, "I saw that you were late on your mortgage" is a sure way to get booted. The key is to not imply in any way that the pre-foreclosure is the homeowner's fault. If the homewner feels that you are not on their side, they will not trust you. A better approach would be to say that you noticed in your research that they were having problems with their property, or that the bank may foreclose on the property.
Tips for Good First Impressions
1) Don't hide your face. When a homeowner looks to see who's knocking, you'd better look non-threatening. Leave the sunglasses and baseball cap in your car, and pull long hair away, too.
2) Keep your hands in plain view.
3) Be casual in your dress. No suits or bling like expensive jewlery. The homeowner does not want to be reminded that as an investor, you stand to profit from selling their home. A Rolex or flashy car will only stress to them that you will make money from their hardship.
In short sale marketing, it's critical that the homeowner likes you, knows you, and trusts you. Until then, the "deal" is secondary.
As a final thought, I believe you should have something to leave if the owners are not home. Door hangers are cheap to print, and are screaming to be read.
Feedback is most welcome. Email me at jim@homesteaddata.net or call me at 607-759-5058.
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