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New Way to Be Competent in Today’s Real Estate Market

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More Foreclosure Related Transactions

I don’t know about you, but there are a lot more foreclosure-esque real estate transactions (bank owned, FHA/VA Repo, Short Sale …) happening lately… at least in my neck of the woods. It is getting to the point where we are closing at least one to two foreclosure-related properties a month (buyer/seller) – in ADDITION to the “regular” ones we close.

Bank owned deals aren’t so bad, but the short sales are massive amounts of dain bramage. Recently, it has gotten to the point where Derek and I could not avoid them any longer. But we sure as heck didn’t know how to effectively deal with them, either.

And the last thing that the real estate market needs is a bunch of real estate agents who know NOTHING about short sales out there taking listings that are SHORT SALES. These homeowners are in enough of a mess. They don’t need a “regular” real estate agent. They don’t even need a “great” real estate agent. They need someone who knows what the heck they are doing when it comes to short sales.

We figured that we need to be competent in ANY market that we work in so, Derek and I decided that we needed to learn more about short sales to survive in this market.

Becoming Better Educated

We went to all the free title company classes about effectively listing and negotiating short sales. They were a little helpful, but not enough. We wanted more.

Finally we found a program that we thought would help us … and MAN! It was one of the best investments that we ever made in our Real Estate education and business. Now, normally I don’t jump around and do a dance about a product or service (well, unless it’s Real Estate Shows) but here is an exception… so I am taking this time to share our experience.



Certified Distressed Property Experts

“Stop Walking Away From Business you can earn commissions and help homeowners in the process (on the deals other agents don’t know how to handle).” – CDPE Website

Derek and I just finished a 3 month course, and are now Certified Distressed Property Experts©. This was a six 2-hour per session course about how to effectively LIST and SELL a short sale listing. We got an information packed manual and a whole notebook of duplicate able and customizable forms and worksheets designed to help streamline the short sale process.

But What Did We Learn?

I think my brain was going to explode during each session with all the awesome information/statistics/tips, so instead of making this post EVEN LONGER, here are some of the highlights of the class:

This course helped us understand and really identify the difference between a DISTRESSED Seller who NEEDS to sell and a DISENCHANTED homeowner who just WANTS to sell. A short sale is not an option for the latter.

We also got great tools for full qualifying the people and properties that we may work with:

  • Distressed Seller: Why are they distressed? The Top 16 reasons why a homeowner is distressed include: Rate adjustment, loss of job, death, divorce and incarceration. Where are they at in the foreclosure process? Where they are in this process determines HOW and IF we even get to work with them.
  • Distressed Property: What are the economic and physical factors that are contributing to the distress? Identifying ALL these factors will help you better negotiate the short sale with their lender.

The CDPE courses also gave us GREAT insight to the emotional situations surrounding distressed sellers, and gave us tools to help us be appropriately compassionate, understanding and patient.

… and we also learned how to apply the same compassion, understanding and patience to the people at the loss mitigation departments of the mortgage banks that we work with. And that little piece of information has paid off in GOLD. The minute we started asking helping-focused questions to the people on the other end of the phone … we started getting STAR treatment. To the negotiator – or whomever we speak to at the mortgage company, we say:

“I understand that you are probably buried in work, so we made sure that we sent over a complete short sale packet for 123 Main Street (both via fax and USPS) to make it as easy as possible for you. WHAT ELSE CAN WE DO TO HELP YOU get our file processed and closed as soon as possible?”

I’m telling you! It works WAY Better than, “WHAT?!?!? You want me to fax that *!?%*?! packet AGAIN?? You people are the most inadequate people on the planet!!” (You can THINK it, but just don’t say it …)

There is an astronomical turn-over rate at these places, and we need to be PREPARED to have your file “transferred” at least once during the process.

Other things that we discussed were:

  • How to put together a bullet-proof short sale package and what verbiage to use when negotiating with banks.
  • How to augment your current business by helping distressed sellers short-sale their home … without engulfing all of your time and energy.
  • How NOT to get raked over the coals by the lenders and actually get paid a decent commission to LIST and SELL short sales

How the Certified Distressed Property Designation Impacted Our Business

Even BEFORE we finished the course, we were seeing results:

  • We negotiated and closed a short sale before our seller even missed a payment (OMG!) and were paid a 6% commission (we co-oped 3% to the Buyer Agent) AND got all our transaction fees covered, as well.
  • We successfully extended the foreclosure dates on 3 distressed listings by 6 Months!
  • We comprehensively educated all of our “distressed sellers” regarding the entire short sale process, which has de-stressed them enough to work WITH us to get things done in a timely manner.

We have found that the Certified Distressed Property Expert Designation is already helping our business. We are now short sale expert real estate agents who can competently work with distressed properties, and can take this competence to make our business grow even further.

If you are seeing an influx in distressed properties in your market, and would like to become more competent in short sales … and better your business in the current market … Then check out the Distressed Property Expert Certification website, or call: 1-800-482-0335

Mariana is a real estate agent and co-owner of the Wagner iTeam with her husband, Derek. She maintains the Colorado Springs Real Estate Connection Blog and is also a real estate technology trainer and coach. Mariana really enjoys helping real estate agents boost their businesses and increase their productivity through effective use of technology. Outside of real estate, blogging and training, she loves spending time with her husband and 2 sons, reading, re-watching Sci-Fi movies and ... long walks on the beach?

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12 Comments

12 Comments

  1. Jim Gatos

    November 5, 2008 at 4:51 pm

    I became a “Certified Foreclosure Prevention Consultant” through Roger Butcher and his “ShortSalesExpress.com” website. I had 2 success and one failed short sale. I had to take ALL this information and then let Shortsalesexpress.com do the short sales. They keep one percent.

    I am going to try a short sale lawyer in my market area and see what they do. Other agents swear by them and I don’t have to give up the one percent. Besides they have a great track record.

    Sometimes those certificates mean nothing. Roger told me in Mass and Colorado he can’t do loss mitigation because the laws are so stringent if the homeowner doesn’t want to pay us for our work they can legally NOT pay…

  2. Bob Wilson

    November 5, 2008 at 5:21 pm

    I’ve been doing short sales for a long time. The last two days have been pure hell with one lender and 5 different files.

    Get the lender employees to take the course and then it will make a difference. The biggest problem isnt the agent anymore, it’s the moving target that is the way some lenders process short sales.

  3. Russell Shaw

    November 6, 2008 at 12:51 am

    VERY nice post, Mariana. Excellent points. I believe that short sales *are* the future and that they will become much much easier for agents to successfully complete.

    We don’t count them as escrows until we get the approval from the lender but currently have 20 files that have been submitted to the lenders.

  4. Mariana

    November 6, 2008 at 8:19 am

    Jim – ALL certifications/designations mean nothing. It is the education that it takes to GET them, and what you DO with them… THAT is what matters.

    With the CDPE designation, I pay NO ONE a fee – not the company, not a lawyer … no one. The courses have taught us how to be competent without having to solicit the services of others.

    I am in Colorado, and I NEVER charge my clients for my services – whether the home SELLS or they figure out a way to stay in it.

  5. Mariana

    November 6, 2008 at 8:22 am

    Bob – We are professionals, and the folks at the banks we work with do not need any kind of professional experience – and I doubt they are paid well either. Sad but true.

    Russell – Thanks! We don’t “count” them until we have full approval from the lender … and even THEN…

  6. Steve Simon

    November 8, 2008 at 9:50 am

    All designations started out the same way as a method to build some level of exclusivity for those that were already there; while building an enterprise to designate future applicants. The by-product (if you’re lucky) is that after a while the courses required to receive the designation actually do improve and take on substance.
    After doing a few deals this and last year I can tell you with a fair amount of certainty:
    Each lender that holds a lien has a unique way of doing things,
    Some lenders will continue to market and hope while they leave your offer in limbo,
    Many of the lien holder’s staff are inexperienced,
    Most of the above are working way to many files to be comfortable,
    90 percent will chew on commissions until what’s left is nothing to right home about…
    The above being said, in my area that is pretty much the only “Play” in the game!

  7. Paula Henry

    November 8, 2008 at 9:54 am

    Mariana – This is excellent information. I started studying short sales through America’s Home Rescue about 2 1/2 years ago. Knowing the ins and outs of “how” has helped me close every one I have had a contract on this year.

    Today’s environment is definately a lot easier to negotiate short sales than 2 years ago when banks were scrambling to get their loss mit departments back.

    I do not charge my clients, EVER! I have one now where the clients paid someone previously $700.00 (for what I do not know).

    One thing you touched on which is crucial – if agents do not know how to do a short sale they should stay away. A recent closing narowly escaped foreclosure, because the home had been on the market for 9 months without showings or an offer. It was priced too high to be a short sale. Agents must know how the banks work and what they will and will not accept.

    Sorry to take so much space 🙂

  8. Mariana

    November 9, 2008 at 10:07 pm

    Steve – What I like about this designation is that it fully addressed EVERYTHING that you mentioned, and what we have learned has gotten us QUICK responses and MORE Commissions.

    Paula – I get SO frustrated when I see a pre-forclosure home sitting on the market overpriced by and under educated agent.

  9. Derec Shuler

    November 11, 2008 at 11:35 pm

    Mariana, thanks for promoting the importance of having an expert handle these transactions. I’ve gone through the program and there’s so much information I feel it’s a disservice to attempt to handle this without having this specific education.

    Are you guys using a negotiator or handling that yourselves? Best, Derec

  10. Bill Lublin

    February 23, 2009 at 10:12 pm

    @Mizzle Awesome post – After serving as the Chair of NAR’s Short Sale Work Group and spending the last 21 years selling REO’s I can tell you that you made a couple of great points – the most important of which might be that is you don;t get the people at the lender on your side, you make your job that much harder.
    I can also tell you , that during the Work Group’s communications with Freddie Mac and Fannie Mae, and other lenders, the third party short sale “facilitators” do nothing that a well educated and aggressive agent shouldn’t be doing for their client.
    Kudos for going out and obtaining the additional training to do the right job for the time and for your clients!

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Business Marketing

Marketing amidst uncertainty: 3 considerations

(BUSINESS MARKETING) As the end of the COVID tunnel begins to brighten, marketing strategies may shift yet again – here are three thoughts to ponder going into the future.

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Open business sign being held by business owner for marketing purposes.

The past year has been challenging for businesses, as operations of all sizes and types and around the country have had to modify their marketing practices in order to address the sales barriers created by the pandemic. That being said, things are beginning to look up again and cities are reopening to business as usual.

As a result, companies are looking ahead to Q3 with the awareness they need to pivot their marketing practices yet again. The only question is, how?

Pandemic Pivot 1.0: Q3 2020

When the pandemic disrupted global markets a year ago, companies looked for new ways to reach their clients where they were: At home, even in the case of B2B sales. This was the first major pivot, back when store shelves were empty care of panic shopping, and everyone still thought they would only be home for a few weeks.

How did this transition work? By building out more extensive websites, taking phone orders, and crafting targeted advertising, most companies actually survived the crisis. Some even came out ahead. With this second pivot, however, these companies will have to use what they knew before the pandemic, while making savvy predictions about how a year-long crisis may have changed customer behavior.

Think Brick And Mortar

As much as online businesses played a key role in the pandemic sales landscape, as the months wore on, people became increasingly loyal to local, brick and mortar businesses. As people return to their neighborhood for longer in-person adventures, brands should work on marketing strategies to further increase foot traffic. That may mean continuing to promote in-store safety measures, building a welcoming online presence, and developing community partnerships to benefit from other stores’ customer engagement efforts.

Reach Customers With PPC

Obviously brick and mortar marketing campaigns won’t go far for all-online businesses, but with people staying at home less, online shops may have a harder time driving sales. Luckily, they have other tools at their disposal. That includes PPC marketing, one of the most effective, trackable advertising strategies.

While almost every business already uses some degree of PPC marketing because of its overall value, but one reason it’s such a valuable tool for businesses trying to navigate the changing marketplace is how easy it is to modify. In fact, best practice is to adjust your PPC campaign weekly based on various indicators, which is what made it a powerful tool during the pandemic as well. Now, instead of using a COVID dashboard to track the impact of regulations on ad-driven sales, however, companies can use PPC marketing to see how their advertising efforts are holding up to customers’ rapidly changing shopping habits.

It’s All About The Platforms

When planning an ad campaign, what you say is often not as important as where you say it – a modern twist on “the medium is the message.” Right now, that means paying attention to the many newer platforms carrying innovative ad content, so experiment with placing ads on platforms like TikTok, Reddit, and NextDoor and see what happens.

One advantage of marketing via smaller platforms is that they tend to be less expensive than hubs like Facebook. That being said, they are all seeing substantial traffic, and most saw significant growth during the pandemic. If they don’t yield much in the way of results, losses will be minimal, but given the topical and local targeting various platforms allow for, above and beyond standard PPC targeting, they could be just what your brand needs as it navigates the next set of marketplace transitions.

The last year has been unpredictable for businesses, but Q3 2021 may be the most uncertain yet as everyone attempts to make sense of what normal means now. The phrase “new normal,” overused and awkward as it is, gets to the heart of it: we can pretend we’re returning to our pre-pandemic lives, but very little about the world before us is familiar, so marketing needs a “new normal,” too.

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Business Marketing

Advertising overload: Let’s break it down

(BUSINESS MARKETING) A new study finds that frequent ads are actually more detrimental to a brand’s image than that same brand advertising near offensive content.

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Advertising spread across many billboards in a city square.

If you haven’t noticed, ads are becoming extremely common in places that are extremely hard to ignore—your Instagram feed, for example. Advertising has certainly undergone some scrutiny for things like inappropriate placement and messaging over the years, but it turns out that sheer ad exhaustion is actually more likely to turn people off of associated brands than the aforementioned offensive content.

Marketing Dive published a report on the phenomenon last Tuesday. The report claims that, of all people surveyed, 32% of consumers said that they viewed current social media advertising to be “excessive”; only 10% said that they found advertisements to be “memorable”.

In that same group, 52% of consumers said that excessive ads were likely to affect negatively their perception of a brand, while only 32% said the same of ads appearing next to offensive or inappropriate content.

“Brand safety has become a hot item for many companies as they look to avoid associations with harmful content, but that’s not as significant a concern for consumers, who show an aversion to ad overload in larger numbers,” writes Peter Adams, author of the Marketing Dive report.

This reaction speaks to the sheer pervasiveness of ads in the current market. Certainly, many people are spending more time on their phones—specifically on social media—as a result of the pandemic. However, with 31% and 27% of surveyed people saying they found website ads either “distracting” or “intrusive”, respectively, the “why” doesn’t matter as much as the reaction itself.

It’s worth pointing out that solid ad blockers do exist for desktop website traffic, and most major browsers offer a “reader mode” feature (or add-on) that allows users to read through things like articles and the like without having to worry about dynamic ads distracting them or slowing down their page. This becomes a much more significant issue on mobile devices, especially when ads are so persistent that they impact one’s ability to read content.

Like most industries, advertisers have faced unique challenges during the pandemic. If there’s one major takeaway from the report, it’s this: Ads have to change—largely in terms of their frequency—if brands want to maintain customer retention and loyalty.

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Business Marketing

7 simple tips to boost your customer loyalty online

(BUSINESS MARKETING) Without a brick-and-mortar store, building rapport and customer loyalty can be a challenge, but you can still build customer loyalty online.

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Man and woman at kitchen table online shopping on laptop together, boosting customer loyalty.

With many businesses – both big and small – operating online, there are less opportunities for building those face-to-face relationships that exist in brick and mortar stores. According to smallbizgenius, 65% of the company’s revenue comes from existing customers.

It’s important to keep in mind the different tactics at your disposal for increasing customer loyalty. Noupe recently released a list of actionable tips for increasing this loyalty. Let’s examine these ideas and expand on the best.

  1. Keep your promises – Stay true to what you’ve agreed to, obviously contractually, but stay true to your company values as well. Even if you feel you’ve built a good loyalty where there is room to take a step back, don’t rest on your laurels and be sure to remain consistent. If you’ve provided a good experience, keep that going. The only change that should happen is in it getting better.
  2. Stay in communication – In addition to the ever-so-vital social media platforms, consider creating an email newsletter to stay in touch with your customers. Finding ways to have them keep you in mind should be at the front of your mind. By reaching out and being friendly, this will help retain their business.
  3. Be flexible with payments – No, don’t sell yourself short, but consider installment plans for pricier items or services. This will help customers feel more at ease when their wallet’s health is at stake.
  4. Reward programs – Consider allowing customers to accrue loyalty points in exchange for a freebie. The old punch card method is still an incredibly popular concept, and is a great way to keep people coming back. The cost associated with giving something away for free will be minimal in comparison to loyalty you receive in order for the customer to get to that point. Make sure that what a customer is putting in is about equal to what they’re getting out of it (i.e. don’t have a customer spend $100 in order to get $1 off their next purchase). If all of this proves successful, this can eventually be expanded by creating VIP levels.
  5. Prioritize customer service – A first impression is everything. By prioritizing customer service, you can help shape the narrative of the customer and how they view your business. This splinters off into them giving good word of mouth recommendations to friends and family. Be sure to keep positive customer service as the forefront of your mind, as giving a bad review is just as easy – or even easier – as giving a good review.
  6. Value feedback – Allow customers a space to provide their feedback, either on your website or on social media. Find out what brought them to you and gage how their experience was. Be sure to thank them for their feedback and take it into consideration. Feedback – both good and bad – can be vital in helping shape a business.
  7. Avoid laziness – Stay sharp at all times. Don’t treat all customers as nothing but currency. Include personalized touches wherever you can. This will make all of the difference.

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