What is the best marketing strategy to use for home owners in foreclosure?
Your subject line and your question do not relate. Homeowners in foreclosure probably meet the “motivated seller” test. Your challenge is to separate your marketing from the hundreds of other letters and postcards that these homeowners get during the pre-foreclosure stage.
You need to:
- Send multiple communications
- Ensure that you have the right address for the owner
- Use “bulky” mail
- Use colorful mail
- Write professional, clear copy
- Mix it up between letters, postcards, etc.
- Use stamps and not metered mail (sometimes)
If you find properties that look very promising, I would write a short handwritten note and use a handwritten envelope with a stamp. A handwritten note, if received by the owner, is almost certain to get a phone call.
Another good strategy is to send a mailing that looks like a check with “Pay to the order” in the window on the front of the envelope. You know the kind we all get from mortgage companies. We all know it’s not a check, but most of us open them anyway.
I’ve actually done this, only I use real three-part checks (blank stock that you can buy at Staples) and write my copy on the blank parts. I can’t say that this has been a home-run, but it does get some response. It’s certainly worth adding to your rotation of messages.
The best way to ge pre-foreclosure deals is to go belly to belly with the homeowners and knock on their doors. Hands down the only way to go. A pain in the butt, but you get a chance to see them face to face and confront their problem head on.
You have to do what is right for you, of course, but I do not agree 100%.
First, there’s a volume issue. I wouldn’t have time to go doo-to-door with the hundreds or thousands of foreclosures in my region.
Second, you might very well be dealing with someone who doesn’t want some “hot-shot real estate investor” coming along and trying to “steal my house.” Some of these folks can be pretty irritable…
Third, you don’t know that everyone at home knows what’s going on…I’ve seen it where the spouse has no idea that the home is going up for auction in three weeks. I don’t want to upset the apple cart at home.
If there are properties that you know are worth going after, you can certainly try knocking on the door, but I certainly wouldn’t limit my approach to this.
I agree that knocking each foreclosure property in town wouldn’t work. There are just too many. However, the foreclosure listing service that I use provides the tax value and the estimated payoff right there on the report. I look for those that have enough equity in them to make a good deal (min 30%). I also agree that they don’t want some hot shot rei knocking down their door either. It all depends on how you approach it. If you approach it like, hey I heard that you are getting foreclosed on, are you interested in selling the property then you might have some resistance. But, if you say My name is ____ and I buy and sell houses in this neighborhood and was wondering if there is anything I can do to help, then you don’t have to worry about upsetting the applecart with unaware spouses/children and you take more of an attitude of wanting to help them out of their problem. I also try to take the posture that I am on their side against the big bad bank. Because I am. I honestly would rather help them find a way to stay in their house, but, if that doesn’t work, then I would also like to help them by buying the house and giving them some walking money. Just my opinion.
In my market I try to be in communication with the realtors that handle a vast majority of the foreclosures. I have them call me when there is a drastic price drop or a new listing coming that is a good deal. They call me over other people because I have the ability to close quick or my buyers have the ability to close quick.
Eric Medemar