Glossary of Real Estate Terms and Expressions

Mortgage Lates - 
Mortgage lates come from the credit reporting companies and are great for prospecting to people before a recorded foreclosure or lis pendens.
 
FSBO - 
There are national companies who supply these lists. Or check your newspaper online daily or call us and we will help.
 
For Sale by Owner people are interested in saving money while making the most profit from the sale of their houses. Most are actually just interviewing agents for the job of selling their home. Some are very angry about the traditional real estate agent process so thick skin is needed at times.
 
Expired Listings - 
This list is exclusive to real estate agents and brokers.
 
An expired listing is a house that was for sale by a real estate agent and the contract between the seller and the agent expired. All listing agreements are for a period of time, usually 90 days to 180 days. After that period of time the contract expires and if the agent and seller do not agree to extend the expiration date, then the property will show up on the Multiple Listings Services (MLS) hot sheet as expired. These expired home sellers are extremely motivated and have another characteristic unlike any of the other prime groups. They are frustrated, frustrated that the agent didn’t sell their house. The reality is that their house didn’t sell because it was overpriced. However, it is difficult for a seller to see that point of view. What is outstanding about this prospect type is that they are ready to hear all offers. Remember that people plan to move before they plan to sell; therefore, the owners of properties that expired have been waiting a long time to fulfill their plans.
 
Short Sale, Pre-Foreclosures i.e. Notice of Defaults, Trustee Sales, and Lis Pendens - 
These are prospects in a stage of a foreclosure. Some states have judicial foreclosures, some have non-judicial foreclosures, some states have both. You will want to learn the various stages and time frames specific to your state. Homeowners in pre-foreclosure are extremely motivated and as of this writing make up a large market to prospect to. You must understand and follow any state laws that may require certain notifications to the property owner. You will also understand various methods for buying these properties. It’s also beneficial to have a good understanding of Short Sales, Subject to investing, Auctions and REOs, because this group is the one group with the most amount of competition for your service.  Not only competition from your peer group but competition from, investors, real estate agents, lenders and the prospects center of influence as well.
 
Naturally Short Sales are within this prospect group and can be a very lucrative and create a fantastic revenue stream.
 
Absentee Owners - 
This list is where the gold is found. People who rent out their houses have different problems such as bad tenants, tenants who fall behind on their rent, etc. It is very common for an Absentee Owner to consider selling when a tenant decides to move out. This group is a great group for a variety of reasons. Call us and we will explain.
 
Active For Rent - 
Search your local daily newspaper. FRBO are another great source of prospects. Although they are not offering their house for sale they still, typically, have a tremendous willingness to hear all offers. A majority of this type of investor, ones who own a single-family house which is for rent were forced into being investors. For example, if a number of them live in a house, and subsequently purchased another house to live in, then could not sell the house. Therefore, their only option was to rent it out.  Imagine the frustration this investor feels when they walk into a recently vacant house that they used to live in which was destroyed by the former tenants. Talk about motivation.
 
Probate / Inherited Properties - 
Each County has a different reporting process.
 
This is one of the most difficult type of prospects to deal with due to the legal red tape involved in the probate process, while potentially having the second highest profit potential. These sellers (probate prospects) are usually the children of the house’s owner and they are more interested in getting money quickly than in dragging out the process. Take some time and find a good, reasonably priced probate attorney to whom you can refer prospects for selling the house, and sometimes even hire on their behalf. The key in dealing with this prospect is to make the process of selling the house as easy as possible. These people will likely not know anything about the probate process and the more you know, the better your chance of buying the house because they begin to trust and rely on you. So, spend some time with the attorney to learn the time process of a probate-related house sale. Become an expert in your prospects’ eyes and you’ll close more deals.
 
Farm - 
A farm is not fruit and vegetables. It is an area of town that you want to market to. Around a new listing or a just sold property. There are various criteria's for picking a farm. When you decide on the type of campaign you will want to have a good indication of what part of town you want to buy within.
 
There are a couple ways to farm. One method is that you can mass advertise (shotgun approach) to a certain area consistently or you can market to a group of houses as an event takes place.
 
I like sending out advertising to the two hundred houses around a specific house. I know historically that within six months of seeing a “for sale” sign placed in the ground, two more sellers will decide to sell as well. I want my name to be top of mind (TOP).
 
Center of Influence - 
These are people you know. Think about the number of people you associate with on a daily basis. People you pay; your barber, gardener, bank teller etc. Now imagine how many people who know you because of someone else. It is an amazing number of people if you stop and think about it. Your COI is enormous and if marketed correctly and will reap tremendous rewards.
 
Free and Clear / Equity Owners - 
I love free and clear prospects, especially in today's market where so many people are upside down. A free and clear prospect is someone who has more than 40% equity in their house.  Having this amount of equity allows them to "be able" to sell their house. where most people are facing foreclosure or are stuck living in a house that is very much overvalued, the free and clear prospect has plenty of equity and have the ability to reduce the price of the house and cause it to sell.
 
Although this group can also be a farm group it is so important that it stands by itself.
 
Unlawful Detainer's - 
Check your local Court System. An unlawful detainer prospect is a house which the tenant has stopped paying their rent and the landlord has begun the eviction. This is the prospect group right before the "For Rent" prospect group.  A downside to the unlawful detainer prospect is that again it is a court proceeding and the information is difficult to obtain.
 
Divorces - 
People who are divorcing and need to sell either because of a court order or because the party who was awarded the property cannot make the payment.
 
Property Citations - 
This is a prospect that the city has issued a citation to. Most require repair, condemn, or remove of trash.