Unit 4: Prospecting and Business Development Flashcards
Prospecting
The process of locating owners who are interested in selling property and prospective buyers who are interested in purchasing a property.
Types of Prospecting
Door, Phone, Mail
CAN-SPAM Act
Protection from misleading unsolicited emails. Must include:
1) Opt-Out Mechanism
2) Return email address
3) Valid subject line indicating a message is an advertisement
4) Legitimate physical address of the mailer
You may legally pay a referral fee to an unlicensed person who:
Introduces a prospective buyer to the broker.
Direct Mailing solicitation for listings is more cost-effective if you:
indicate you will be contacting them
Do not call exceptions
1) You may call a listed party if you have an existing business relationship ( within 18 months of purchase, sale, or lease).
2) You may call a party within three months of an inquiry the party made.
3) You may call people who have given you written permission to call.
4) You may call commercial numbers ( the registry only applies to residential phones)
5) You may call the numbers on for-sale-by-owner ads or signs as a buyer representative, but not for the purpose of obtaining seller representation
6) You may call for survey purposes, but no solicitation for representation can be included in the call.
What classified ad category is likely to provide listing leads?
Homes for Rent
Legal Notices
Foreclosure Probate Divorce Bankruptcy Death Notices Evictions Building Permits Code Violations Tax Delinquencies
A good indication that the owner might be interested in selling:
A high vacancy rate, tenant evictions, and code violations are all indications that the owner might be interested in selling income property.
Endless Chain
Refers to obtaining additional prospects from every lead.
Farming
Refers to working or prospecting a geographic area or special interest area for buyers and sellers
nongeographic farm
specialization in mobile homes, income property, or lots
