No LUCK with Short Sale Mailings
Remember these two basic realities...
1. Return on direct mail is less than 1.5% So, if you mail out 100 pieces you generally receive ONE RESPONSE almost not worth the effort...
2. 70% of all homeowners that have been foreclosed. Never reached out to find out what their options were.
maybe... they are experiencing one or most likely all of the following:
Afraid to answer the phone, Afraid to open a piece of mail they don't recognize and are even Afraid to answer the door.
kinda makes it hard to reach these people..ya think!
Any ideas out there...?
Replies to This Discussion
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Permalink Reply by Jeff Payne on
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Rick, I agree 100%. First off, mailers will have a 1.5% success rate IF you mail over and over again. I think that 1.5% comes from consistant monthly mailers so it would take 100 mailers over 12 months to get one to two responses. IF you were to list them and sell both, the ROI would not be too bad. Assume that each mailer costs .75, you would spend 900 to get 2 sales. My area, 2 gross sales would be about 8000.00. Your marketing expense for that would be 11.25%. Nice ROI.
Now lets assume that you took the time to door knock each and every 100 people and did it once per month for 12 months. That success rate should be 15% (actually 16.6% according to Millionaire Real Estate Agent book). That would mean 15 sales or 60,000 in CGI. The cost is time but lets assume that you spend 100 in gas to do this and 100 in business cards and handouts each month. You spent 2400 to make 60,000. Your marketing expenses were 4% and you made alot more money.
Some of this could also be accomplished by phone so the gas expenses could be lower. Most likely you would get some referrals out of this too so the numbers could even be better.
Good post, I love this stuff!
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Forgot to add that most likely a seller who is being hounded by debt collectors is going to throw your mail in the trash without reading it
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Permalink Reply by Deidre St. Romain on
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Door knocking! I actually enjoy it. I door knocked 15 yesterday and only 5 of those actually answered the door (one was a Realtor who was NOT going to ss just "let it go"..long story.. Another was just listed the day before (teach me to check my lists before going out the door). Mind you it is 115 degrees here in Arizona and door knocking is not exactly a pleasant task. If you get in the routine of it you can get quite good at it (like anything else). I enjoy talking to people and sometimes people NEED to talk to you. So yesterday's success? Last night I got a call from one of those "door knocks". I had actually given my spiel to his wife and left my card. So not bad for 15 doors! Probably list him next week!! Personal contact is always the BEST!
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Deidre, please keep track of your successes, we would love to see the numbers. I think that over time they will feel more comfortable with you and your success rate will climb. but 1 out of 15 in one day is good!
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Permalink Reply by Smitty on
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I think I need to get over my fear of door knocking and cold calls. WAY TO GO Deidre!!
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Permalink Reply by Rick Trono on
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Jeff,
The more Follow up "Touches" the more you up your success rate which equates to higher ROI...
I always VET the short sale prospect properties and F O C U S on the properties that I have a higher chance of bank approval...and mail three different pieces every three days and repeat with a sticker with a different message on the outside of tha envelope - if they dont open the envelope They will at least see the Message it works!!! because people are CURIOUS BY NATURE and will eventually Open the envelope.
Best,
Rick
Jeff Payne said:Rick, I agree 100%. First off, mailers will have a 1.5% success rate IF you mail over and over again. I think that 1.5% comes from consistant monthly mailers so it would take 100 mailers over 12 months to get one to two responses. IF you were to list them and sell both, the ROI would not be too bad. Assume that each mailer costs .75, you would spend 900 to get 2 sales. My area, 2 gross sales would be about 8000.00. Your marketing expense for that would be 11.25%. Nice ROI.
Now lets assume that you took the time to door knock each and every 100 people and did it once per month for 12 months. That success rate should be 15% (actually 16.6% according to Millionaire Real Estate Agent book). That would mean 15 sales or 60,000 in CGI. The cost is time but lets assume that you spend 100 in gas to do this and 100 in business cards and handouts each month. You spent 2400 to make 60,000. Your marketing expenses were 4% and you made alot more money.
Some of this could also be accomplished by phone so the gas expenses could be lower. Most likely you would get some referrals out of this too so the numbers could even be better.
Good post, I love this stuff!
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See reply to your first post...
Jeff Payne said:Forgot to add that most likely a seller who is being hounded by debt collectors is going to throw your mail in the trash without reading it
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Permalink Reply by Becky Martin on
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Mailer sent and call on Monday- House going to foreclosure auction this Friday (today) - owner had never even heard of HAFA - listed, had him call and tell the bank he wanted to apply for HAFA - foreclosure date postponed until Oct. so he can go thru the HAFA process:)
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Permalink Reply by Kevin - Greenville, SC on
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Great work!
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Deidre,
You Rock...Great Enthusiasm, that alone will up your rate of success...
Rick
Deidre St. Romain said:Door knocking! I actually enjoy it. I door knocked 15 yesterday and only 5 of those actually answered the door (one was a Realtor who was NOT going to ss just "let it go"..long story.. Another was just listed the day before (teach me to check my lists before going out the door). Mind you it is 115 degrees here in Arizona and door knocking is not exactly a pleasant task. If you get in the routine of it you can get quite good at it (like anything else). I enjoy talking to people and sometimes people NEED to talk to you. So yesterday's success? Last night I got a call from one of those "door knocks". I had actually given my spiel to his wife and left my card. So not bad for 15 doors! Probably list him next week!! Personal contact is always the BEST!
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Becky,
As I mentioned in my original post: 70% of all homeowners that have been foreclosed. Never reached out to find out what their options were.
You reached out !!! BINGO New Listing Congratulations!!!
you got to keep reaching out ...because they rarily reach out to you.
Rick
Becky Martin said:Mailer sent and call on Monday- House going to foreclosure auction this Friday (today) - owner had never even heard of HAFA - listed, had him call and tell the bank he wanted to apply for HAFA - foreclosure date postponed until Oct. so he can go thru the HAFA process:)
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Permalink Reply by Bryant Tutas on
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