I work with a lot of REALTORS who are targeting homeowners who are defaulting on their mortgage. One of the main questions that is asked is how do you approach a home owner who is in default and going through one of the most stressful and difficult times of their life?
Let me share with you my experience. Two years ago I was an active and aggressive door knocker. DAILY I would pick ten homes in Foreclosure Radar all within a 5 mile radius and with a sale date of at least 2 months out and I would visit these houses in the afternoon when most people are getting off work. I quickly learned a few things and had to adjust my approach accordingly:
1. These are not expired listings or FSBO'S, meaning this is not a traditional market and my ways had to soften in order for someone to want to hear what I had to say. The traditional “Sign the contract” was not going to work.
2. These homeowners were inundated with mailers from REALTORS claiming they were short sale experts but the majority of them were charging an upfront fee which led to distrust within the Real Estate market.
3. Some of the homeowners were trying to do a loan modification and were in complete denial about the reality of their situation. They were unaware that most loan modifications fail and foreclosure was therefore imminent.
4. Most homeowners were not educated about all of their options and were not aware of the California foreclosure timeline.
I realized that in order for me to be successful in getting the homeowners to speak to me I needed to consider the following:
1. I needed to remain open, compassionate, non judgmental and KNOW that my job is to build a relationship and trust. Listen first and then ask questions.
2. I did not want to sound like I was reading a script. Although that works well when you are calling expired listings and FSBO'S, in a delicate matter such as this where a lot of negative emotions are flying around coming from the heart is where I knew I would be most effective.
3. I needed to know my content in order to handle objections as there are many in short sale transactions. There is a level of distrust so the more professional, compassionate and knowledgeable I was, the more I would be able to get through to them.
4. I needed to EDUCATE the homeowner on all of their options. Help them to decide on their own what the best choice would be in order for them to achieve their goals.
What I sense from home owners who are losing their homes is a level of fear, shame and guilt. That’s a lot of energy to hold space for. The question to ask yourself is can you be still and listen, really listen? That’s what they are looking for along with a solution. Here are “3 ways of giving” I like to use when I am on a listing appointment:
a) Give them reality
b) Give them their options
c) Give them hope
They are looking for you to tell them the truth not what they want to hear. By listening and asking all the right questions you will be able to intelligently explain what is about to unfold.
Go over the pros and cons of all options for a homeowner in default and then put the ball in their court so they can feel a sense of empowerment that they made this decision and it was not forced upon them.
Lastly, offer to help. Help them find a rental at the end of the short sale or offer help with a credit recovery program. If all is done properly, in 18-24 months they could be in the market to buy a home again.
What does this do for you as agents?
These homeowners are not broken; they just need the proper guidance. If you allow yourself to give back to the community and to people that truly need help you are creating 3 things:
1. Build strong relationships.
2. When you help them through this process and break through to the other side they will come back to you therefore setting up your revenues for the future.
3. You will be the first person they think of when they are in a position to refer you to others who could benefit from your services.
It is no secret that we are in a time where our entire livelihood has been challenged but one of the greatest gifts I have learned in this market is the more I slow down and take the time needed to connect with people and listen the more effective and efficient I am. I have great connections with wonderful people and the feeling I get when I am able to help someone through this time and make it a win for them is something that money can’t buy yet I am rewarded anyway. How does that happen?
(Quote) The place to improve the world is first in one's own heart and head and hands.
Robert M. Pirsig
REALTORS, what is in your business plan this year? What are you doing to create a system that will allow you to build your short sale business? How often are you out there prospecting and how do you know if you are taking the listings that are going to be successful and not a waste of your time?
Call us today and let us show you a system that works to help you expand your business and effectively and efficiently close short sale transactions.
LOTUS REALTY GROUP
PROFESSIONAL SHORT SALE NEGOTIATORS
At Lotus Realty GROUP, helping people ethically succeed is at the forefront of who we are...
Call today to find out how Lotus Realty Group can assist you in closing your short sale transactions or go to WWW.LotusRealtyGroup.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment