Anyone else having low response ratio?

Question

I am doing direct mail marketing & have noticed that recently my response ratios have dropped. Just wondering if it's the holidays? Also have found lately that alot of the brokers & agents are dropping the ball when it comes to getting me the info that I need to work deals. I have tried being overly nice, but am losing my patience. Dont know if they are arrogant or just plain lazy. I really have no time for either of these scenarios. About ready to get rid of all of them & start puting a new team together. Anyone else experiencing this? Any advise?
Thanks in advance.

Account Closed · Answer

- Have you tried any other type of marketing besides online like newspapers, local flyers, signs, etc? Not yet, but I will, after Christmas. I plan to use local newspapers & pull tab notices. - How low did you set the price too? my mentors said he would put the starting price at 25% below ARV. HA! That's what I did...And I wonder if it's too high. how many other 5 day auctions have you done? None-I'm a newbie at this, and have just two houses to sell and replace, hopefully with two each. (Then I can do more! lol) You mentioned modified. What is different? Advertising almost a month ahead of the sale, instead of 3 days in advance, on the net, nationwide ads on the net, rather than just local, and the price: Rather than setting it at 50%, I set it at 75%, based on many many posts that people weren't bidding much beyond the listed price, or low numbers of responses, and this through the last year of the archives. Only 2 people recently posted that they had sales and got what they felt were decent results, but both were 20% or more less than their desired price. Many people didn't sell. I want to sell, but not at 50% of what everybody else is getting. Sales pitch here: It's in a nice and still entry level neighborhood. It's one of the smallest models (1280 sq feet), so appropriate for either younger families, or even empty nesters. Many of the kids, I understand, have grown up and gone, and my immediate neighbors are older, except for one family, and I think they have a teenager. Thanks for the feedback. I hope others will chime in. Ofgift

Account Closed · Answer

I have no answer to your question, but was wondering the same thing myself this morning. I'm doing a modified 5 day sale. One of the strategies to to price way below market to get attention, and advertise Wed thru Sunday. If there aren't 25 replies by Fri night, stop the sale and figure out what's wrong: price (too high) advertising venue, or what. I've had internet ads out for over a week, and have had few responses. My price is low, perhaps not low enough. Or IS it the season? I'll be interested in the answers we get here. Ofgift

Peter G. Cronje · Answer

It is definitely seasonal. I do a lot of marketing during the holiday season, but get very little response.

Corry Taie · Answer

Ken B: I have been doing my letters for a couple of months & it has slowed considerably. I had about a 3% response rate & now nothing. I should ad that I am marketing for sellers & I do short sales. You are right, It is not as easy as they make it sound, but if it was, everyone would be doing it. I do make good money at it, it has just slowed down alot during this holiday season.

Diane Menke · Answer

I concur with Mike. Our remodeling company has seasonal ups and downs that correspond to RE seasonal changes. I have been talking to real estate agents about this for years and the 2 flow in similar patterns. Come Xmas holiday season few people are buying homes. I can get a 2nd semester tenant in. To keep busy in the remodeling business during this season, we have to sell for it in Aug or Sept. I would say "polish the apple" you want to sell while you have some time off and try to get an early spring sales excitement started. Around here thats March. As to the team being sort of "relaxed" its true and annoying but maybe you can again, reinvigorate the group come early spring with a lunch and a chat about new things you all can do together to drum up business in early '09. Make you plans now so you can implement effectively when the season is right. Best Diane

Michael Rossi · Answer

Yes, it's the holidays. In my experience, business almost grinds to a halt from Thanksgiving to after New Years. People are thinking about buying Christmas presents; going to Christmas parties; and traveling to grandma's house - not buying houses. Mike

Ken B · Answer

Sorry, I made an error, my mentor actually said to have the starting price at 25% of the ARV. lol But seeing as how you mentioned that people haven't been getting bids much higher than the starting price is getting me a bit worried. Are these people you know personally? Do they post here or anywhere else? How much experience do they have with these type of auctions?

Ken B · Answer

Hey Ctaie, Just curious, but how long have you been doing your campaigns? And if it was done previously, what type of response rate were you seeing? Were you able to find any "low hanging fruit" deals that fit your criteria for your business? I'm in the process of building my "team" now to get things going, but regardless of what all the guru's say, its does not seem to be a walk in the park by any means.

Ken B · Answer

Just throwing some ideas out here since I'm a novice that is familiar with the 5 day sale, although I never personally did it: - Have you tried any other type of marketing besides online like newspapers, local flyers, signs, etc? - How low did you set the price too? I recently heard from one of my mentors that with the market the way it is, he said he would put the starting price at 25% below ARV. Just curious also, but how many other 5 day auctions have you done? And how well did they go? Also, you mentioned modified. What is different?