A 'SLEEPER' MARKETING TOOL FOR MORTGAGE LENDERS
October, 2000 by Jim Woodard A key element in marketing a home by a brokerage firm is seldom discussed or understood by homeowners. This area of communications is has become an effective media of promotion for mortgage lenders, often without their knowledge. In most cases, when a broker or sales associate lists a residential property, they immediately submit that listing to the area multiple listing service (MLS). And it's usually another (cooperating) broker who actually comes up with the buyer prospect and sells the property. The ability of the listing agent - the broker who was contracted to sell the home - to promote the home's advantages and financing potential to competitive brokers and associates in the area can make a big difference in the amount of time it takes to finalize a sale of the property and bring the highest price. Those cooperating brokers must be motivated to actively market the home to their list of prospective buyers. Occasionally, in a "seller's market" where there is a very low inventory of available homes for sale, offers to purchase the property will come in immediately without any promotional efforts by the listing broker. In some cases, multiple offers will be submitted. But in most situations, strategic marketing is required to produce a sale. The traditional way to promote new listings with brokers throughout the local marketing area is to include the property on a "caravan" of open houses for brokers, usually set by the Board of Realtors or MLS on a certain day of each week. And listing agents are often invited to "pitch" their new listings at MLS meetings. An increasing number of more creative and progressive brokers will go beyond these steps by holding a special open house for area brokers and associates, complete with refreshments or a giveaway item as an added incentive to attend. This provides an excellent opportunity for the listing brokers to explain details of the property's financing potential. Invited brokers are usually those who are particularly active in the sale of properties like the one being promoted. Also, selected brokers will receive a personal invitation to attend a public open house of the property at a specified time. Recent communications technology has opened the door to other ways to promote listed properties to brokers. Many listing brokers now send e-mail messages and faxes to lists of other brokers about their recently listed properties. They often categorize lists of brokers in their area of expertise and by the precise type of property they most often sell and their capability to line up appropriate mortgage financing. They direct their electronic messages accordingly. One broker made it a practice every day of preparing fax promotional messages about his recently listed properties. Then using the timing device on his fax machine, he had them all transmitted to their broker destination points shortly after midnight. He became know in his area as the "midnight faxer." The rationale, he said, was to have these messages on the desk of targeted brokers first thing the next morning - the time when they are most likely to take action on it. When those messages contain information about specific mortgage lenders who can deliver a particularly attractive loan package on the property, it's a great marketing tool for those lenders. | 
