Posted by Barry (FL) on August 13, 2003 at 10:26:59:
NT
% of call from unmotivated sellers? - Posted by Kristine-CA
Posted by Kristine-CA on August 12, 2003 at 13:04:43:
Greetings. Can any of you that do mailings share your experience with the percentage of calls that you get from unmotivated sellers. I did a recent mailing with a new and improved letter and the phone is ringing. But it’s worse than ever in terms of unmotivated sellers.
I’ve had an 8% response rate–a pretty good rate for me since this was just a general mailing to out of town owners (I get better response rates on mailings that mention specific properties). But some of the calls are just ridiculous. Two calls were from people who liked my letter (??). And several have been from people who aren’t thinking of selling at all–just wanting to know what I’d give them for their property even though they are not willing to sell it. I actually do laugh out loud at that. And, as usual, there is at least one seller who won’t tell me the address of the property?!
I’ve gotten deals from mailings, so I know it just takes the right call, but I’m confused by the number of people calling that aren’t interested in selling.
Anyone else ever get this?
Sincerely, Kristine
Re: % of calls - Posted by Brent_IL
Posted by Brent_IL on August 13, 2003 at 23:00:02:
Hi Kristine,
We don?t do mailings. Its mostly incoming calls. This is all of the details that I?m going to give. There is a rough correlation of units to ?hours? of advertising. In our experience, we get one call for every 7.24 units of advertising exposure in well-populated areas. Two of nine calls result in an offer presentation. If you are fearful to lose a live one, or reluctant to burn-off an interested party and you still close one out of every three offering presentations, you will buy fractionally over one house for every 120 actual advertising ?hours?. With these ratios, creative real estate purchases will approximate .8333 of one percent of advertising units.
More is not forthcoming because I?m going to reactivate local advertising soon, and I don?t want to train my competition. Maybe 10 bandit signs equal one unit, but that?s just a wild guess.
I get a high percentage of acceptances because I allow most to blow off, so the ones that are left are ready to deal. I think the 1:120 ratios will hold up across the board.
Quick Screening Device - Posted by Kevin IL
Posted by Kevin IL on August 13, 2003 at 12:20:46:
Tell the caller you are on the other line with another homeowner. Ask the caller if they will give you their name and phone number and you’ll call them back after you finish the other call.
If they’re motivated you’ll get the number!
Re: % of call from unmotivated sellers? - Posted by RichV(FL)
Posted by RichV(FL) on August 12, 2003 at 15:30:52:
Kristine,
I see the same kind of stuff everytime I run an ad.
Even with my rental ads I’ll get a crackpot or two, or someone asking 1000 questions and has no intrest in the house I’m trying to rent. I’m thinking they are other landlords feeling out the competition.
Ever since the RE market got “hot” I have been finding less motivated sellers and more people with just questions wanting to know how much money they can get for their house.
Regards,
RichV(FL)
Re: % of call from unmotivated sellers? - Posted by rm
Posted by rm on August 12, 2003 at 14:28:04:
Sounds like this is a much less targeted list than you usually use, so it’s certainly going to yield a higher percentage of bad leads. You’re probably going to get “cold call-like” ratios from a mailing like this. Imagine the recipient, going to the mailbox, not really thinking about this particular property, and suddenly gets a solicitation to sell.
“Well, gee, I wasn’t really thinking about selling, but hey- for the right price, I just might!”
I don’t think this is probably your ideal target. Seems to me you’d want a list with a higher likelihood of being motivated.
Ultimately, the number of unmotivated callers doesn’t really matter… IF you generate enough deals. Keep good records of your calls and see what your response is.
See if you’re able to do 1-2 deals on the first mailing. Then, calculate your cost per deal and see if that # is acceptable.
IF you’re doing enough business as a result, the next thing to do would be to convert the campaign to a two-step system, letting an automated hotline pre-screen your callers.
Re: % of call from unmotivated sellers? - Posted by Barry (FL)
Posted by Barry (FL) on August 12, 2003 at 13:41:28:
Hi Kristine,
That’s a great response rate. I do targeted mailings to preforeclosures, expanding to other areas at the moment and starting a carrier route general mailing this week.
My maketing message states that If you need full retail price AND all cash, please do not call me. I also further screen incoming calls with a recorded message on an 800 number so by the time they leave a message or dial 0 for my direct line, I know they are motivated!
I get a majority of my deals through direct mail.
Hope this helps,
Barry (FL)
Re: % of call from unmotivated sellers? - Posted by Kristine-CA
Posted by Kristine-CA on August 13, 2003 at 01:26:27:
Wow. Don’t call if you want full retail price? I’m impressed. That’s pretty blunt. Wonder how I could put that in my letter somehow.
Perhaps, in my case, it’s better to get the calls and say that I can’t pay full retail when we talk. That’s the way it’s going now. But your suggestion has got me thinking. Sincerely, Kristine
Re: % of call from unmotivated sellers? - Posted by kgreen
Posted by kgreen on August 12, 2003 at 15:03:44:
Sorry for changing the subject, but were are you at in Florida Barry?
Re: % of call from unmotivated sellers? - Posted by phong
Posted by phong on August 12, 2003 at 14:49:46:
I think you should leave out the “If you need full retail price and all cash, please do not call me” part… You never know what they might consider to be “full retail price”! Imagine if they greatly underestimate the value of their house…
Re: % of call from unmotivated sellers? - Posted by Barry (FL)
Posted by Barry (FL) on August 13, 2003 at 10:25:42:
I make it clear in my material that I am an investor and I have to make a profit. This cuts out alot of useless time on the phone for me. My service also captures their number and I do a reverse lookup for the address and send something to them anyway, whether they request it or not. This basically says that my services may not be right for them at the moment but sometimes situations change. If I could be of service in the future please call. I’ll send them a postcard once a month after that.
Hope This helps,
Barry (FL)
Re: % of call from unmotivated sellers? - Posted by Barry (FL)
Posted by Barry (FL) on August 12, 2003 at 20:46:04:
Ormond Beach, central east coast, just north of Daytona
If you want to reply to me take nospam out of my email address.
Barry (FL)
Re: % of call from unmotivated sellers? - Posted by qstaff
Posted by qstaff on August 12, 2003 at 23:03:31:
Oh snap, you’re not Baron’s friend who’s in real estate investing, are you, by any chance?