Marketing 201Principles of Effective Marketing and Core

Techniques

Agenda

• EMS

• Points of Difference

• Communication Strategy

• Developing Effective Advertising

• Short Sales

EMS: Differentiated Marketing Services

Kevin OldhamVice President – United Country Marketing Services

INTERNAL MARKETING RESOURCES AVAILABLE TO UC AFFILIATES

Internal Marketing Firm

UCMS’ Suite of Services

These are optional marketing services

WHAT IS EMS?

• United Country Marketing Services’ exclusive suite of services

• Designed to address need for seller-paid marketing services

• These optional services are above the standard UC offering

WHAT IS UNITED COUNTRY MARKETING SERVICES?

• Your in-house marketing team:– Strategic marketers: 4– Graphic designers: 4– Web designers & SEO Specialists: 3– Media planners: 1– Media buyers: 1– Copywriters: 1– Public relations specialists: 2– Editors: 1

• You have a full marketing team of 17 professionals supporting you….can your competitors stake this claim?

• We free you up to do what you do best…list and sell real estate and conduct auctions.

EMS IS A COMPETITIVE DIFFERENTIATOR DESIGNED TO

HELP YOU LIST AND SELL…

Common denominator: Seller typically funds a campaign with your company’s name tattooed on the advertising

THE VALUE OF DIFFERENTIATION

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HOW YOU CAN MAKE MONEY LEVERAGING EMS

• Use EMS to open doors that previously may have been closed

• Leverage EMS to drive buyers to your listings

• Revitalize marketing efforts on existing listings

• Eliminate the Opportunity Cost of executing marketing tasks yourself

• Use EMS as a differentiator to increase listings & commissions

EMS MARKETING PROCESS

THE EMS SUITE OF SERVICES

• Fully Integrated multi-media auction marketing campaigns

• ‘One-off’ services– Brochures – Media Plans– Digital Campaigns– Corporate ID– Any marketing

needs you need, we can handle them for you

ANNOUNCING THE UCMARKETINGSERVICES.COM

WEBSITE

Important Differentiator For EMS Clients

OUR VISION STATEMENT

United Country Marketing Services’ vision is to deliver professional, fully integrated marketing solutions that give United Country affiliates a competitive advantage by:

– Creating opportunities to for you to list and sell large properties, real estate developments and auctions

– Increasing the likelihood of an acceptable offer– Stimulating the market by focusing a spotlight on your listing or

auction– Serving as a differentiator in listing presentations

EMS: Differentiated Marketing Services

Kevin OldhamVice President – United Country Marketing Services

Marketing 201Principles of Effective Marketing and Core

Techniques

Differentiation• Brands - Companies, People, Products,

Services, Countries, Anything Influenced by Man

• Each Stand for Something Different– America – China– ReMax – United Country

• No Two Brands Are Identical– The Olsen Twins– Coke and Pepsi

• Buyers and Sellers Choose Brands They Perceive as Unique and Better – They Will Also Pay More for a Better Brand

Differentiate• Write Down Every Reason A Seller Should Choose

You to List Their Property vs Your Competition

• Write Down Every Reason a Buyer Should Let You Represent Them vs Your Competition

• Now Rank Those Reasons in Priority Order– Ask Others to Rank Them Too

• Try to Understand What the Common Theme is for The Top Three Combined

• This is Your Key Point of Differentiationand Reasons to Believe

Communication Strategy

• Now that You Know Your Key Point of Differentiation and Reasons toBelieve…

…You Must Communicate It…Effectively

Remember “Whisper”

• What Did You Learn From that Game?

• How Could You Guarantee Your Intended, Important and Expensive Message is Communicatedand Received?

Write It Down

Step 2The Creative Brief

• Write It In a Brief (Short) Form • What, Who, Why, How, When, How Much• Elements

– Background / Situation / Opportunity

– Objective

– Strategies

– Tactics

– Key Message (1 Idea – 1 Sentence) – Consumer Take-a-way

– Key Reasons to Believe (5-7 Max)

– Target Market (Narrower is Better)

– Timeline

– Budget

Example of a Creative Brief

Background / Situation / Opportunity: Potlatch Timber Company wants to sell 10,000 harvested acres in MN.

Objective: Sell available acres fast and at the fair market value within 12 months.

Strategies:• Market as recreational hunting property• Subdivide into 100 and 200 acre lots• Emarketing, Direct Mail and Event Marketing

Tactics:• Email and Mail to Special Confidentials and InfoUSA Hunters in MN• Attend MN Deer Hunters Association Show in May and DU Monthly Meetings

Key Message – Single Consumer Take-a-way: “Virgin Hunting Land”

Key Reasons to Believe (5-7 Max)1. 1st Public Sale of Timber Property2. Not hunted in over 15 years3. Trophy buck pictures from property

Target Market (Narrower is Better): MN deer hunters, age 40-65, with incomes over $70,000.

Timeline• Creative brief complete 3/15/10• Creative brief to EMS 3/16/10• First review of creative concept 3/30/10• Final creative approval 4/15/10• 1st email blast 4/20/10• 1st Direct mail drop 4/20/10• Direct mail In-home 4/25-4/30/10• Deer Hunters Show 5/17/10• 1st MN DU Meeting 5/125/10

Budget: $5,200

Step 3

The Execution• Evaluate Ads and Creative Against the

Brief– Objective not Opinion– Only Matters if the Target Likes It

• The Fewer Words (Images) the Better– “Just Do It”– 7 Max – Card Game show 7 cards, ask to remember, after 7th stand up if you remember the first card, sit

2-6 if forget.

• The More Interesting The Use of Words (Images) the Better– “So Easy A Caveman Can Do It”– “Sell Greed, Buy Fear”

Words MatterCommunication Objective: Inspire the team during tough times…

“The hardest of times, show just who is tough” Or“When the going gets tough, …”

Communication Objective: Inspire service and sacrifice

“Ask not what your country can do for you,…”

Use common words in an interesting way.Oxymoron: “Heaven on Earth”Alliterative: “Find Your Freedom” Hyperbole: “Voted #1 in Equine Real Estate” Rhyme: “Theurer for Surer”Range: “National Adverting, Local Expertise” Essence Tag: “Just Do It”

Use Copy that is Short … …But Persuasive

3,000,000 Visitors per Month! Discover Why

National Marketing, Local Expertise

Uniting Local Sellers with Nationwide Buyers!

Grand Opening, Since 1925

Sell Your Home on 1,000 Websites

Determining Ad Effectiveness“The BIG 3” Test

1. Motivating Message– Real consumer need or want– Call to Action – Tell them what they should do

2. Clear Branding– Clear Company Branding

3. Entertaining– Somehow interesting, different, unexpected,

celebrity, personal– Using words or images

Effective Marketing Communication Process

• Understand Why You Are Unique and Better– Point of Difference– Reasons to Believe

• Write Creative Briefs for Each Initiative

• Evaluate Creative Against the Brief

• Practice Copy Principles– Fewer, Interesting (Different)= Memorable

Media MixMost Heavily Dependent on Your Target• Media Planning

– Establish a Budget– What media habits does your target have?– 1 Frequency – Maximize Reach

• Heavily Dependent on Your Main Objective– Launch / Awareness = Billboard, Newspaper, Radio Remote– Limited Time = Signs, Radio, Email, Direct Mail– Market Leadership = All Media (esp Billboards, Newspaper

and TV)– Listing Advertising = Consider All, Target and Timing

• Ask for “Value Added” from Media Companies– Free Special Events, Promotions, Networking

Short SalesWhat Every Agent Should

Know

Short Sales Some of your clients may find themselves in a

situation whereby they are unable to afford their mortgage payments.

In these situations, a short sale may be a good alternative to a foreclosure.

Short SalesWhat is a short sale? • Selling a property for less than what is owed.

• The lender holding the mortgage agrees to take less than the mortgage payoff amount.

• Agents must understand this techniqueas their seller’s biggest investment and future homeis on the line

Short SalesPros

– May be the best option for your seller

– Expertise your sellers will value

– Can be less damaging to your sellers credit (vs foreclosure)

– Stops collection calls from the mortgage company

– Can save the embarrassment of having a sheriff sign on the property. – No foreclosure notice printed in the newspaper

– Typically much quicker than a foreclosure, even though it may take 2 to 3 months or more

– Being pro-active in resolving the matter is usually much less stressful than just letting a foreclosure happen

Short SalesPros

– Some lenders will loan to a short sale seller within 2 (Fannie / Freddie) – 5 years

• Foreclosures at 5 (Fannie / Freddie) -7years

– Short sales stay on your credit report 7 years, bankruptcy 10 years.

• May be able to get a short sale removed after 4-5 years,not foreclosure (legal requirement on foreclosure).

– New information as of January 2009: There is ONE major benefit by SOME FHA lenders! A short sale will not be counted against a borrower if they want to buy a new home right away. A foreclosure requires a waiting period of two years

Short SalesPros

– You can negotiate credit reporting by the lender, it is their choice on short sales, not foreclosures

– Lenders may be more open to a short sale in your credit report versus foreclosure.

– You settle all debts, foreclosure can still pursue 2nd mortgages and debt deficiency judgments.

Short SalesCons• Lower Commissions• Labor Intensive• Time Consuming• Learning Curve is Large • Negative Credit Score Implications

Should not be your sole focus asmortgage restructuring (government programs) and time requirements may limit the volumeof available deals

Short SalesBasics Facts

• Will still be a major hit on their credit rating, most believe it won’t be as bad as foreclosure.

• Some banks hide deficiency balances in the short sale, so this must be negotiated out.

• In a short sale, the lender pays the broker’s commissions.

• Banks threshold are typically 85-92% of current market value− You can sometimes get better than this, but it is rare.

Short SalesProcess - Key Steps

• First try loan modification.

• Try to find and work with a short sale processing company on at least your first couple of deals. Find one that takes a partnership approach where you work with the client, the short sale company works with the bank. A good short sale processor will walk you through the special paperwork that is required, and be able to provide help along the way.

• Work with an Experience Mentor on your first few short sales.– New Agents Close 50%, Experts Close 95%

• Focus on only listing short sales that have a high probability of closing.

Look for: 1. A motivated, responsive seller

2. Loans from lenders that are likely to work with you (no private money loans, liens, or judgments)

3. Properties that aren't ridiculously upside down (asking the bank for less discount improves likelihood of a close 85% or less)

4. Properties that are easy to value (no unusual features, lots of local comps).

Short SalesProcess - Key Steps

− A successful agent must be detailed oriented, organized and willing to do significant paperwork (approximately 200 pages)

− The work is similar to being a mortgage broker

− Only submit 110% Complete Packages to the Lender− Always include a BPO (even if not required)− Get foreclosure comps for the bank.− Seller MUST have a very good “Hardship Letter” plus strong evidence− Can happen in 30 days from submission if 110% complete− Have a Bonafide Offer− Do the bankers job for them

− Time to acknowledge 3-7 days, Time to approve 30-90 days

− Commissions allowed 3%-6%• Be prepared to defend your commission rates, esp. on 2nds with some banks. “Policy” on rates, may not always be policy.

Short SalesProcess - Key Steps

• Call the short sale negotiator every 3 days• Be courteous and professional on the phone when dealing with the lender.

• Know ahead of time who the negotiator's team leader is, and who the team leader's manager is.

• If you are not getting response on every 3rd call, the next call should be to the next level up. Once you have escalated to the upper level, insist on them remaining in the loop of emails, internal emails, voice messages or what ever.

• Make sure to write the loan number on every piece of paper, including the contract, you send to them.

• Call the dept. who is handling the SS and let them know you are sending a fax. Then faxing a page or two to them every few days with the loan number on it forces them to pull the file, and add the fax, which then has the file going to the top of the pile.

• Get a written “full” release of all liability from your lenders. DO NOT complete a short sale unless your lender(s) will provide a full release, IN WRITING.  Do not rely on anyone's advice that, "they usually don't pursue it." Some banks wont.

Short SalesAdditional Facts• Effective 12-16-09, borrowers are not eligible for a new FHA mortgage if they pursued

a short sale agreement on their primary residence to 1.“ take advantage of declining market conditions” 2. “purchase another similarly priced property at a reduced price (short sale price) within

commuting distance”.

• Borrowers are cleared for a new FHA-insured mortgage if they were current on their previous mortgage and other debts at the time of the short sale and if the proceeds from the short sale serve as payment in full.

• A borrower that executes a short sale while in default on their mortgage would not be eligible for a FHA-insured mortgage for three years from the date of the pre-foreclosure sale. Some lenders can make exceptions if the default was due to circumstances beyond the borrower’s control such as the death of the primary wage earner.

• But, it means that anyone eligible for the Home Affordable Foreclosure Alternatives program (HAFA) would not be eligible for a new FHA-insured mortgage for three years. Under HAFA, the US Treasury Department provides incentives to servicers, banks and investors to pursue a short sale for seriously delinquent borrowers.

Short SalesShort Sale Information - FAQ   Question:

I have been told that if I sell my house for less than what is owed, my mortgage company will issue me a 1099 for the difference, and I will have to pay taxes on that. Is that true?

Answer:In 2007, the Taxpayers Debt Relief Act states that the homeowner will NOT owe the IRS taxes from a short sale 1099.  (You will still receive the 1099 but with no federal tax implication.) This act is in effect until 2010 and will most likely be extended – was it???.  Therefore, there is no federal tax liability associated with a short sale at this time.  To obtain information regarding any state or local tax responsibility, please consult your accountant.

Question: Will I be responsible for paying the difference back to my mortgage company? (Will my mortgage company issue a deficiency judgment?)

Answer:Some mortgage companies will issue a deficiency judgment and expect the homeowner to pay back any amount that is owed to them after the sale; however, the amount is usually substantially less than the deficiency judgment that would be filed as a result of a foreclosure.  It pays to do a short sale instead.

For legal advice on possible obligations after a short sale or foreclosure, please consult your attorney.

Marketing 201Principles of Effective Marketing and Core

Techniques