Door Knocking for Short Sales

By
Education & Training with Keller Williams Realty - Rancho Cucamonga

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 :)

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Re-Bloggged 8 times:

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  1. Mark Rienzie 11/28/2009 08:38 AM
  2. Peggy Santmyer 11/28/2009 09:22 AM
  3. Donald Bradbury 11/28/2009 10:23 AM
  4. Nicholas Goglucci 11/28/2009 10:57 AM
  5. Dave Singery 11/28/2009 01:52 PM
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Topic:
Real Estate Sales and Marketing
Location:
California
Groups:
Inland Empire Networking Info
Short Sale REALTORS®
Short Sales and Forclosures ONLY
Short Sales Specialists
Tags:
short sale trainer
door knocking
making home affordable
jacob swodeck
short sale

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Anonymous
Atlanta Decatur Homes - Sharon Kolb

Doorknocking!  Whew -- I began my career in real estate by making over 100 phone calls a week in a designated farm area.  Over time, homeowners began to know me and it was a very successful campaign.  I combined the phone calls with periodic door knocking in the same area.  I'm still door knocking 25 plus years later and most of the people I meet are happy to see me.  Here are a few of my suggestions:  

  • Have a reason to be there -- a survey, updating your mailing list, etc.
  • Make it brief and move on (older folks often invite me in for tea)
  • Leave something -- a business card, notepad, magnet
  • Follow up on promising contacts with a handwritten note & keep in touch

Great post.

November 30, 2009 11:14 AM
Rainer
31,865
Scott Benson
Geneva Real Estate and Finance

Great post.  I door knock and I have to say I really enjoy it.  Not all my conversations turn into sales but they do result in someone at least being more informed and in the end, better things will happen to them, and better things will happen to me.

November 30, 2009 12:55 PM
Anonymous
Beverly Tyson

What a great posting.  I've been in the real estate business for over 25 years.  In the early days My husband(also a licensed REALTOR) and I knocked on doors we were well received by little came of it.  I've been thinking about a NOD campagine so this is a good push!

November 30, 2009 02:10 PM
Anonymous
Nick Alameddin

Old school still works, many agents in my market are affraid to go out there and knock on doors. That is the best way to be proactive and still works, I have gotten business and referrals from it as well.

November 30, 2009 06:59 PM
Rainer
5,089
Eric Hestbeck
Titan Realty

Great post. Old school door knocking works! I have purchased pre-foreclosure properties for years. I would routinely knock on doors and had success. It is much easier to use a soft-sell informative approach for distressed sellers offering short-sale services. When knocking on doors trying to purchase the property...well that is a much different story. While I haven't had the cigarette in the face, I have had a double barreled shotgun pointed at me.

Be careful out there and you can be very productive.

December 01, 2009 01:02 PM
Anonymous
Chuck Cooper

I do not really like door knocking.  I do not like people at my own door.  Some people do not answer.  A very few are hostile.  But our job is to find people who need a realtor.  Door knocking works.  Post cards can be done in the evening.  Open houses are done on Sunday.  Besides door knocking, what can one do during "down time" during the week that will put us in front of people who need our help?  And door knocking has the added benefit of exerccise.  I go with a friend; we knock opposite sides of the street; whe have lunch; it is a good day.

December 02, 2009 12:46 PM
Anonymous
Chuck Cooper

I do not really like door knocking.  I do not like people at my own door.  Some people do not answer.  A very few are hostile.  But our job is to find people who need a realtor.  Door knocking works.  Post cards can be done in the evening.  Open houses are done on Sunday.  Besides door knocking, what can one do during "down time" during the week that will put us in front of people who need our help?  And door knocking has the added benefit of exerccise.  I go with a friend; we knock opposite sides of the street; whe have lunch; it is a good day.

December 02, 2009 12:46 PM
Rainer
59,430
Dennis Puckett
Adams,Cameron & Co.

Sounds like a plan to me. I've turned to late afternoon and early evening for door knocking. I catch more people at home that way.

December 03, 2009 11:06 AM
Rainmaker
107,496
Dana Devine
Charles Rutenberg Realty

thanks so much for sharing....while you infor was good, i like to read all the comments..there is a lot of good stuff in everyones commennnts

December 23, 2009 08:02 AM
Rainmaker
112,322
Bob Krus
What About Bob? For All Your Real Estate Needs!
Keller Williams Foothills Realty

Do what you don't want to do to get a result you do want...

Easy to say, difficult to do.

January 04, 2010 11:31 AM
Rainmaker
112,322
Bob Krus
What About Bob? For All Your Real Estate Needs!
Keller Williams Foothills Realty

Do what you don't want to do to get a result you do want...

Easy to say, difficult to do.

January 04, 2010 11:31 AM
Rainmaker
112,322
Bob Krus
What About Bob? For All Your Real Estate Needs!
Keller Williams Foothills Realty

Do what you don't want to do to get a result you do want...

Easy to say, difficult to do

January 04, 2010 11:34 AM
Rainmaker
156,508
Wendy Rich-Soto Team At Keller Williams Realty, LA Harbor
"Because IT IS all about YOU!"
Keller Williams Realty, LA Harbor

I don't like to door knock but I am determined to find a way to enjoy it and to get really good at it!

February 17, 2010 09:41 PM
Rainmaker
24,637
Shari Posey
Prudential California Realty

I used to love door knocking and got quite a bit of business from it. I'd like to door knock NOD and NOTs but not exactly sure how to approach them and what to leave behind. I've got the lists already but can anyone cut and paste successful scripts they have used? Or give verbage for a flier that works for them? I'm not the pushy type, which is probably why door knocking tends to work for me BUT door knocking people in financial distress is probably a totally different type of thing. Any specifics would be great!

July 01, 2010 02:10 PM
Anonymous
Sylvia Jonathan

Shari, I just started "farming" tax delinquent and NOD homeowners by combining "mortgage distress" postcards with door knocking. What you have to realize is that 80% of prospects are in denial at first. If they are doing a loan mod, genuinely wish them luck with it and promise to keep in touch to see how it goes. Invite them to call you if they have any questions when dealing with the lender. Since most of them fail, you know sooner or later you have a hot prospect for a short sale.

Cross the unfriendly ones off your list. For each of those, there are 10 other doors you can hit.

July 01, 2010 04:34 PM
Rainmaker
24,637
Shari Posey
Prudential California Realty

Thanks Sylvia,

What do you put on your mortgage distress postcard?

The distressed homeowners I plan to contact already have a sale date so they are about 30 days from sale. I was going to stress the fact that trying for a short sale will postpone the sale date in addition to less of a hit on their credit. Any thoughts on this?

July 02, 2010 11:26 AM
Anonymous
Sylvia Jonathan

You can buy foreclosure postcards at Cornerlot Marketing online, or maybe Prudential has some ready made ones. I use the small cards for less postage. Things like "the clock is ticking" or "loosing sleep over mortgage default" might work. I am still trying which ones give best results. If you door knock, leave a flier that advertises you doing zero cost short sale.

I once knocked on a door where the sale was scheduled in 2 days and the guy let me in and listed the home. I closed 5 months later.

July 02, 2010 11:37 AM
Rainmaker
24,637
Shari Posey
Prudential California Realty

Very clever taglines...I like them. I wouldn't have thought of those. Thanks!

July 02, 2010 05:08 PM
Rainmaker
88,555
Frank Harris
Keller Williams Realty Centre

I have targeted two areas in my county and I will going door to door in these specific sub divisions. I am simple telling homeowners that there are options to foreclosures and that we have already helped a few clients in the their neighborhood avoid foreclosure and we are spreading the word about our service.

I will chime back on the results

April 09, 2011 04:00 PM
Rainer
332,937
Paul Gapski
619-504-8999,#1 Resource SD Relo
Berkshire Hathaway / Prudential Ca Realty

thank you very much for the informative and interesting post. I get so much out of the active rain network.

March 14, 2012 08:33 AM
Anonymous
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Rainer
8,790

Jacob Swodeck

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