There are many types of ways to contact a potential seller. However, there is none more intimate than speaking to them face to face. If you have not received a response to letters or emails then the door knock is an excellent way to convert a potential lead to a listing.
A “door knock” is when you simply go to the where the home owner lives and speak to them directly. This type of approach is effective because you will gain valuable information to add to their psychological profile as well as interest level.
The vast majority of objections heard during prospecting are knee-jerk reactions from busy people who don’t yet see the value in working with you.
Bryan Gonzalez, Hubspot.com
I recently spoke with Brett, who is a real estate broker who was working several 7D Leads in his area. He went to 2 or 3 properties, knocked on the door and asked, “Do you want to sell your home”? The home owner replied. “No” goodbye and closed the door. Bryan Gonzalez of Hubspot.com says the reason home owners object generally fall into two categories:
- I don’t understand the value and I’m too busy to think about it.
- I’m not ready for a buying/selling conversation.
Using contact methods such as letters, post cards and phone calls are ways to build brand rapport and credibility with the client. If you have made at least five attempts to contact the home owner it is logical that they will better understand why you are now on their door step. If done consistently this changes the call from a cold to a warm call. An owner that is familiar with your name, logo and or the company you represent will be more receptive to speak to you.
4 Keys to Converting a Lead on a Door Knock
Information – You should have as much information on the potential motivations of the seller as possible. Having an understanding of why they need to sell is extremely important. The questions you ask and your approach will be different depending on the which category of the 7D Theory category you are working. Knowing if the client has filed for bankruptcy, not paid their mortgage or may need to sell because a death in the family all have different approaches.
Open Ended Questions – Are valuable when you listen to the client. You want to get the home owner in a dialogue (not a monologue) so you can show them your value versus their situation. Open ended questions help you gather information, establish rapport, credibility and trust. Don’t lead the home owner. Ask the question and listen to their answer. Most importantly it is harder to say give a short answer like “No” when you use this questioning format. In the situation discussed earlier, instead of asking “Do you want to sell your home”? the Brett could have asked:
“How will you determine when it’s the best time to sell”?
“What do you think you’re biggest obstacle will be going forward?”
“Tell me about your last experience with the bank?”
“How many months has it been since you paid your mortgage?”
“How do you feel the foreclosure filing will affect you?”
See 80 open ended questions to ask here
Value Proposition – Quickly tell the home owner the value that you offer while address one of the two most common objection before they happen. “Articulate value early and concisely. You can mitigate the value objection by simply respecting the prospect’s time and explaining what you want early in your outreach says Bryan Gonzalez of Hubspot.com. Every email, voicemail, and phone interaction should lead with an assurance that you won’t take much time, followed by a short (30 seconds or less, or one to two sentences), buyer-centric, and customized value proposition.
Sell the Next Step – You’re not there to start a short sale or sign a listing agreement! When you feel you have interest from the client sell them on a consultation meeting with our attorney. Don’t get into a broad discussion of the service yet. Sell the next meeting where everything will be discussed in greater detail. This will give you the opportunity to show the seller how professional and knowledgeable you are before signing a listing agreement.
Remember if you are working Debt leads it is important to convey to the client that times is of the essence. Foreclosure proceedings do not run on the homeowners time line. If you are working probate leads then you are selling an appraisal.
If you knock on the door and no one is at home. You should have creative marketing materials that are professional that you can leave to show that you were there. Don’t just stick your business card in the door. Remember, every post card, letter, phone call email or door hanger is counted as a contact.