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#377116 - 05/26/11 11:54 PM Cold Calling Scripts
heidi k Offline
Member

Registered: 11/18/10
Posts: 19
Loc: California
I am a newbie and about to embark on my first cold-calling adventure. I have door-knocked and sat many open houses as my main outlets for lead generation. I need to step things up though.

Please share your cold-calling scripts for both buyers and sellers. I would really appreciate any input!

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#377119 - 05/27/11 02:00 AM Re: Cold Calling Scripts [Re: heidi k]
Anyelina Offline
Member

Registered: 11/12/10
Posts: 227
Loc: Miami
Yes! me too! I would like to read original ways to handle tough FSBO's, especially those who have these objections:

-Will you cut your commission?

-I can negotiate very well the price too, I'm not overpricing my property. I can get and pay for a professional CMA. My real estate attorney can handle the paperwork. I can pay a $500 to put my home on the MLS. So I don't need to pay double commission, only to the agent who brings a buyer. So please tell me: why I really need a listing agent like you?

I would like to read different answers for this! smile

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#377188 - 05/27/11 02:10 PM Re: Cold Calling Scripts [Re: heidi k]
MartyGreen Offline
Member

Registered: 09/30/09
Posts: 338
Loc: canada
@heidi k I would use a script something like this...

Hi Mr/Mrs Seller, we just listed a home near you and I was just wondering if you have thought about buying or selling? Do you know of anyone else who may be thinking about selling?

or

Hi Mr/Mrs Seller, I am working with Mr.Smith and he is interested in finding a home in your area and I was just wondering if you have given any thought to moving at this time?

@ Anyelina

You really need an agent like me because your house is not selling and I sell houses all the time. I use very creative ways to market homes and I get results and that's what you would be paying for. (You really need to ask questions to gauge their motivation for selling. If they are un-motivated then yes you are going to have a very hard time showing your value).

There are many techniques to working with FSBO's but it all comes down to your Value Proposition. If you can clearly show them that you know what you are doing and have the stats to back it up you should be able to convey trust and get the listing. It takes practice but once you get good at it, you can do very well.

good luck!

Marty
_________________________
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#377196 - 05/27/11 03:00 PM Re: Cold Calling Scripts [Re: MartyGreen]
Anyelina Offline
Member

Registered: 11/12/10
Posts: 227
Loc: Miami
Originally Posted By: MartyGreen

@ Anyelina

You really need an agent like me because your house is not selling and I sell houses all the time. I use very creative ways to market homes and I get results and that's what you would be paying for. (You really need to ask questions to gauge their motivation for selling. If they are un-motivated then yes you are going to have a very hard time showing your value).

There are many techniques to working with FSBO's but it all comes down to your Value Proposition. If you can clearly show them that you know what you are doing and have the stats to back it up you should be able to convey trust and get the listing. It takes practice but once you get good at it, you can do very well.

good luck!

Marty


Ok, this FSBO would answer this:

"My house is just 1 month ago on the market. There are a lot of properties for sale with Realtors that haven't been sold anyways. So what's your point? All the Realtors that have called me, have told me the same thing, that they have the "best marketing". Why I have to believe you more than the others? If you say you have the best marketing and you are so sure you can bring buyers, then why you don't use it and I pay you the commission when you bring the buyer?"

What would you answer?

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#377201 - 05/27/11 04:13 PM Re: Cold Calling Scripts [Re: heidi k]
NJCanuck Offline
Member

Registered: 04/01/11
Posts: 263
Loc: GTA, Ontario
Anyelina, I'm just brainstorming, but the reasons (not the actual phrases) for you to answer that objection may be that when you serve buyers, you serve their interests, so you won't be marketing his property to buyers, you will be helping a buyer select a property that suits the buyer's needs best. You would also be negotiating against the seller.

The seller would have to spend his own resources and time on the marketing and showing of his property wink He would also likely be qualifying the buyers who come to him on his own. (not sure how that would be phrased in a nice way, though :))

Also, what's your average time on the market? If 1 month is not long enough, perhaps it would make sense to go to FSBOs that have been on the market longer, or keep contacting them (i.e. not trying to get them to sign with you from the get go)

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#377218 - 05/27/11 07:24 PM Re: Cold Calling Scripts [Re: Anyelina]
incolorado Offline
Junior Member

Registered: 05/24/11
Posts: 6
Loc: Colorado
I'm new but had this conversation about this at my office.

If FSBO asks about cutting your commission you can say something along the lines of...

~Mr. FSBO, we have been talking for about 5 min. (or whatever), correct?

~Well if I agreed to cut my commission so fast, what do you think my reaction is going to be when the buyer wants to offer you less on your house?

~I work very hard for my commission and will work just as hard to bring in the highest offer for your home.

I hope this makes sense and helps to answer your question.

Have a great weekend!

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#377235 - 05/27/11 11:56 PM Re: Cold Calling Scripts [Re: incolorado]
Thunderstruck Offline
Member

Registered: 05/17/10
Posts: 250
Loc: Townsville, Australia
Just a little thought, along with using the right (very important) scripts. How we use our body to convey that message is very important too, experts say something like in communication it's 55% body lanuage...ect seems like Floyd Wickman says that in his demo's. If we say what we mean, and are humble and honest, people will see that. Good eye contact and a warm smile, works wonders too. Even on the phone pretend your looking them in their eyes, I will stand in front of a mirror to make sure I am smiling when I am on the phone. Think about this, two movies, SAME SCRIPT, different actors, one is a huge success the other a flop, why? Do all actors pour themselves into the part? NO! When we are prospecting or on an appointment, are we really using ALL our talents convincingly?

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#377283 - 05/28/11 02:49 PM Re: Cold Calling Scripts [Re: incolorado]
Bay Area Brian Offline
Veteran Member

Registered: 06/09/07
Posts: 613
Cutting commission. Let me ask your opinion Mr fsbo, do you think it makes much sense to pay 1 or 2 percent less on commission only to get 3 or 4 percent less on your sales price? What do you mean? In general many agent showings on the mls are often selected based on what % the showing agent is being offered, and showings are what you want, no showings equal no offers, so as time passes your listing gets stale and agents ignore it, and a buyer will ask how long it's been on the market, and so if you do get an offer it's usually a much lower offer.


And Mr fsbo if you sell it yourself your going to have to convince the buyer that he should pay full price for your property when the buyer knows your not paying a commission, and he knows he must handle all the details for his end of the deal, or hire an attorney or agent to do it for him. And the first thing he will ask himself is why should he pay you a commission? What will you tell him?

There are only two good reasons for a buyer to look at fsbos and they are they want to save money by getting the commission amount, or you have a home they just can't find any where else and it's what they really want. If there are similar homes on the market why wouldn't the buyer just use an agent to handle things and buy one of those other properties if he is going to pay the market price anyway?

I like to ask questions, not tell. Example I'll pay the agent that brings me a buyer a commission statement. Well Mr fsbo that's great I'm glad to hear your offering broker co-op. Most of the agents I deal with are going to be working with buyers under a buyers broker agreement and they have already agreed to pay a fee to the agent.

For example I work with buyers for 3% fee but if the property is unlisted I charge 4% because I know from experience that if there is no listing broker, I will be doing a lot of things the listing broker would normally do. But again my buyer will be aware that your only paying a 4% commission and they will want you to contribute 2% to their costs if they are paying market value, so where is the savings?

Just a couple of thoughts, goal is to get seller to step into buyers shoes and defend his sellers position and create doubt, but never ever say they can't do it, you will lose them with that.

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#377287 - 05/28/11 03:21 PM Re: Cold Calling Scripts [Re: Anyelina]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 2273
Loc: Outer Banks
Stop wasting your time trying to convince some hardheaded-know-it-all fsbo to work with you.

There are tons of sellers out there and the more time you waste on someone like this is time your not using to contact and help serious sellers.

The best script you can learn is "NEXT". This is what you say when you realize a client or potential client is going to consume too much of your time and energy. There are always tons of potential clients everywhere. The secret is in finding enough of them so that you don't have to worry about converting every one of them.
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

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#377349 - 05/29/11 12:17 PM Re: Cold Calling Scripts [Re: Bigtoe]
BK Estates Offline
Member

Registered: 07/25/10
Posts: 257
Loc: SoCal
I like Bigtoe's answer. As for "-Will you cut your commission?"
the answer is 'No, any other questions?'

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#377361 - 05/29/11 01:56 PM Re: Cold Calling Scripts [Re: NJCanuck]
Anyelina Offline
Member

Registered: 11/12/10
Posts: 227
Loc: Miami
Originally Posted By: NJCanuck
Anyelina, I'm just brainstorming, but the reasons (not the actual phrases) for you to answer that objection may be that when you serve buyers, you serve their interests, so you won't be marketing his property to buyers, you will be helping a buyer select a property that suits the buyer's needs best. You would also be negotiating against the seller.


You are right in one way, but come on... let's face it please. The listing agents want to get the listing so they can turn into a transaction broker or (do a dual agent if its not illegal in that state), so they can get the buyer also and get the whole commission. That's what the most of listing agents look for. And you know, a transaction broker gives a LIMITED REPRESENTATION for both seller and buyer. So at the end, the listing agent won't be negotiating on the seller's behalf, will be giving a limited representation for both.


Originally Posted By: NJCanuck
The seller would have to spend his own resources and time on the marketing and showing of his property He would also likely be qualifying the buyers who come to him on his own.


So what kind of marketing are we talking about that is SO BIG and SO EXPENSIVE that a Seller can't handle? Let's face it too: the best marketing is the MLS, the MLS syndicate the listing to a lot of websites like: Realtor.com, Hotpads, Trulia, etc, etc. A seller can pay a flat fee to put the listing on the MLS and just pay 3% to the buyer's agent or actually more than 3% and even attract more buyer's agents and show more the FSBO property. All the marketing that is worth it right now is on the internet, not on printed magazines, newspapers or printed fliers.

I just want to hear a good reason with specific details, why a FSBO, that can pay for a professional CMA, to pay a real estate attorney, and pay a flat fee listing on the MLS should hire a Realtor. All the ones I have read are the same repetitive scripts.


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#377365 - 05/29/11 02:25 PM Re: Cold Calling Scripts [Re: Bay Area Brian]
Anyelina Offline
Member

Registered: 11/12/10
Posts: 227
Loc: Miami
I'm going to answer as the FSBO:

Originally Posted By: Bay Area Brian
Cutting commission. Let me ask your opinion Mr fsbo, do you think it makes much sense to pay 1 or 2 percent less on commission only to get 3 or 4 percent less on your sales price?


Why 3% or 4% less? First of all, if that buyer is with an agent, that agent should have a CMA to show to his/her clients and will see that I'm not overpricing. I will have my professional, accurate and recent CMA too to show it too.


Originally Posted By: Bay Area Brian

In general many agent showings on the mls are often selected based on what % the showing agent is being offered, and showings are what you want, no showings equal no offers, so as time passes your listing gets stale and agents ignore it, and a buyer will ask how long it's been on the market, and so if you do get an offer it's usually a much lower offer.


You are completely right. That's why I want to pay a flat fee listing for only $400 to put it on the MLS, and offer not only 3% for the buyer's agent but 3.5% to attract buyer's agents and show my property. Just do the math: $400 + 3.5% is way cheaper than 6%. That is, I will have even more agents showing my property than if I'm giving 3%.

Originally Posted By: Bay Area Brian

And Mr fsbo if you sell it yourself your going to have to convince the buyer that he should pay full price for your property when the buyer knows your not paying a commission, and he knows he must handle all the details for his end of the deal, or hire an attorney or agent to do it for him. And the first thing he will ask himself is why should he pay you a commission? What will you tell him?


I don't have to convince them, they can see the reports and the comparative market analysis and see for themselves that my price is the right market value price. And that buyer can come with an agent, I will paying the buyer's agent commission, not the buyer. So that agent can represent the buyer with her end of the deal. So what's your point?

Originally Posted By: Bay Area Brian

There are only two good reasons for a buyer to look at fsbos and they are they want to save money by getting the commission amount, or you have a home they just can't find any where else and it's what they really want. If there are similar homes on the market why wouldn't the buyer just use an agent to handle things and buy one of those other properties if he is going to pay the market price anyway?


Again: I will be paying the buyer's agent commission, and even a higher commission than the standard so they can be more motivated in my property. What buyers care the most is the price, and my price is the fair market value price, and can show it in the CMA that I have or even the one that the buyer's agent has. The buyers don't care if it listed with a Realtor or not, because they are not going to pay them directly the commission, they will pay the fair market value price. So what's your point?


Originally Posted By: Bay Area Brian

I work with buyers for 3% fee but if the property is unlisted I charge 4% because I know from experience that if there is no listing broker, I will be doing a lot of things the listing broker would normally do. But again my buyer will be aware that your only paying a 4% commission and they will want you to contribute 2% to their costs if they are paying market value, so where is the savings?


Again: I will be paying a real estate attorney, and you know... an agent like you can't practice law because you can get sued, and who better to handle paperwork than a real estate attorney? Don't worry that you don't have to work harder, you only have to represent your buyer. And if a buyer wants to get his/her own real estate attorney, s/he would do it either if I would have a listing agent or not. So what's your point?

==================

I think these kind of objections make a lot of sense and I would like to hear from the experts how they handle these kind of objections.

I know that many of agents would think this FSBO is a waste of time and will go to the next one. But I think that the agent who can give the best arguments for these specific objections and can prove why is better to list with him/her than otherwise, then can convince any FSBO and get more listings! rockon

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#377396 - 05/29/11 08:47 PM Re: Cold Calling Scripts [Re: Anyelina]
Maui Offline
Moderator
Veteran Member

Registered: 01/13/10
Posts: 759
Loc: Maui, HI
Originally Posted By: Anyelina

You are right in one way, but come on... let's face it please. The listing agents want to get the listing so they can turn into a transaction broker or (do a dual agent if its not illegal in that state), so they can get the buyer also and get the whole commission. That's what the most of listing agents look for. And you know, a transaction broker gives a LIMITED REPRESENTATION for both seller and buyer. So at the end, the listing agent won't be negotiating on the seller's behalf, will be giving a limited representation for both.

So what kind of marketing are we talking about that is SO BIG and SO EXPENSIVE that a Seller can't handle? Let's face it too: the best marketing is the MLS, the MLS syndicate the listing to a lot of websites like: Realtor.com, Hotpads, Trulia, etc, etc. A seller can pay a flat fee to put the listing on the MLS and just pay 3% to the buyer's agent or actually more than 3% and even attract more buyer's agents and show more the FSBO property. All the marketing that is worth it right now is on the internet, not on printed magazines, newspapers or printed fliers.




Would you mind sharing how you came to those conclusions? Saying that listing agents just want to double-end their deals seems like a very strong assumption (most agents that I deal with take their fiduciary duty very seriously, putting their client's interest above and beyond their own). And do you have any data on which to conclude that 'the best marketing is the MLS'? I'm not discounting that having syndicated data through IDX is a powerful tool to get in front of the most amount of potential buyers, but curious whether you have tested other methods (after all, not every market is the same, what works on mine may not work on yours).

Anyway, you have a lot of responses from a FSBO's point of view, have you developed any potential answers that you'd like to share? And to that point, I'd suggest presenting your value during your listing presentations (why should they hire YOU) and if the seller is simply quick to give you all those responses, they are probably so resolved in their convictions that there is no possible amount of 'convincing' to make them see otherwise. Your time is valuable, spend it with those who WANT your services, rather than trying to convince those who simply DONT. Best of luck.


Edited by maui real estate (05/29/11 08:49 PM)
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#377410 - 05/30/11 12:16 AM Re: Cold Calling Scripts [Re: Anyelina]
NJCanuck Offline
Member

Registered: 04/01/11
Posts: 263
Loc: GTA, Ontario
Originally Posted By: Anyelina
Originally Posted By: NJCanuck
Anyelina, I'm just brainstorming, but the reasons (not the actual phrases) for you to answer that objection may be that when you serve buyers, you serve their interests, so you won't be marketing his property to buyers, you will be helping a buyer select a property that suits the buyer's needs best. You would also be negotiating against the seller.


You are right in one way, but come on... let's face it please. The listing agents want to get the listing so they can turn into a transaction broker or (do a dual agent if its not illegal in that state), so they can get the buyer also and get the whole commission. That's what the most of listing agents look for. And you know, a transaction broker gives a LIMITED REPRESENTATION for both seller and buyer. So at the end, the listing agent won't be negotiating on the seller's behalf, will be giving a limited representation for both.


I haven't seen much of this here (from a point of view of a customer). I would think that the agents who want to build a business would try to give the best possible service and fulfill their fiduciary duty. You seem to be describing someone who is interested in getting in and out quickly, and who doesn't care about the quality of work he does. Just the feeling I get from what you wrote...


Originally Posted By: Anyelina

Originally Posted By: NJCanuck
The seller would have to spend his own resources and time on the marketing and showing of his property He would also likely be qualifying the buyers who come to him on his own.


So what kind of marketing are we talking about that is SO BIG and SO EXPENSIVE that a Seller can't handle? Let's face it too: the best marketing is the MLS, the MLS syndicate the listing to a lot of websites like: Realtor.com, Hotpads, Trulia, etc, etc. A seller can pay a flat fee to put the listing on the MLS and just pay 3% to the buyer's agent or actually more than 3% and even attract more buyer's agents and show more the FSBO property. All the marketing that is worth it right now is on the internet, not on printed magazines, newspapers or printed fliers.

I just want to hear a good reason with specific details, why a FSBO, that can pay for a professional CMA, to pay a real estate attorney, and pay a flat fee listing on the MLS should hire a Realtor. All the ones I have read are the same repetitive scripts.


A seller can probably handle anything you can. What a seller wouldn't have is your experience (or the experience of the broker helping you in the beginning). Also, the seller would have to spend his time, and get frustrated dealing with buyers. Now, I would assume (and it is an assumption), that if the seller's house was properly priced, it would have sold and he wouldn't be talking to you in the first place.

Marketing is expensive because it takes time. It takes time to research, it takes time to develop strategies/ads that work, it takes time to figure out what sort of response you want to get and which demographic to target. Web marketing is also not free, unless the seller is a programmer/designer/usability pro in one. Then the seller would have to pay for hosting, for registering a domain, for making sure it's known to people.

A good reason for a FSBO to hire an agent is simply to remove the hassle and the risk (agents usually are insured with E&O insurance, at least here it's mandatory). If the person selling his own house has enough time to wait, and enough energy to show the house, deal with callers/agents/etc., market his property, know how to price it right, and adjust the price objectively, and in general doesn't mind this work, then he should be selling on his own, and you probably won't add any value. If someone is so hostile to you, why would you want to work with him? Just to prove a point that you can? I'm certain that that type of person would lead you back here with another huge rant smile


Edited by NJCanuck (05/30/11 12:18 AM)

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#377412 - 05/30/11 12:56 AM Re: Cold Calling Scripts [Re: Maui]
Anyelina Offline
Member

Registered: 11/12/10
Posts: 227
Loc: Miami
Originally Posted By: maui real estate


Would you mind sharing how you came to those conclusions? Saying that listing agents just want to double-end their deals seems like a very strong assumption (most agents that I deal with take their fiduciary duty very seriously, putting their client's interest above and beyond their own). And do you have any data on which to conclude that 'the best marketing is the MLS'? I'm not discounting that having syndicated data through IDX is a powerful tool to get in front of the most amount of potential buyers, but curious whether you have tested other methods (after all, not every market is the same, what works on mine may not work on yours).

Anyway, you have a lot of responses from a FSBO's point of view, have you developed any potential answers that you'd like to share? And to that point, I'd suggest presenting your value during your listing presentations (why should they hire YOU) and if the seller is simply quick to give you all those responses, they are probably so resolved in their convictions that there is no possible amount of 'convincing' to make them see otherwise. Your time is valuable, spend it with those who WANT your services, rather than trying to convince those who simply DONT. Best of luck.


I came with these conclusions because that's what I have seen. Especially, those who have listings targeted to investors/cash buyers rather than people with loans. I know investors that want to buy properties in cash, they have told me that the listing agents only return their calls to them when they say they DO NOT have a buyer's agent. Right now, an investor that has a buyer's agent is a disadvantage, because the listing agents just want to deal with cash buyers without buyer's agents so they can take the whole commission.

And of course, sellers sign the "single agency" agreement but ALSO they signed an agreement where it notifies that they agree that agent to become a transaction broker in case s/he brings the buyer. There are agents that are only buyer's agents and don't deal with sellers and I'm not talking about them, I'm talking about agents that deal with sellers, and that's why I said "most of listing agents" (not all), at least here in my area. If you don't know, I'm in South Florida and here is one of the areas with highest foreclosure rates and investors (national and international) are coming here to buy properties in bulk. Actually, a lot of Realtors are investors too and are re-selling the properties to other investors. So they don't want to pay commission to buyer's agent of course, only want to deal with other cash buyers without agents.

About MLS, I think is the best, that's my personal opinion, can't affirm is a fact. But if its not the best marketing tool, then is one of the most important definitely. Because is the root of almost all the inventory of real estate, the first source that all buyer's agents get information from and therefore what they promote in everywhere else. Right now, internet is most important marketing tool, not printed magazines, not postcards, not yellow book. Do you read all your junk mail? Now people don't even look to yellow book. They look everything in the internet. And the MLS (at least my MLS) syndicate to LOTS of websites and that is included in the board fees. But you are right, probably in other markets and for some listing agents MLS is not their best tool.

About the FSBO responses: if you don't remember from other threads, I am NEW in Real Estate. I just have been 6 months in this profession and I have worked ONLY in rentals, not yet in sales. And because I don't have any experience with sales and haven't had any listings yet, I want to learn how other Realtors with experience in cold calling can deal with tough FSBO's that come up with these kind of objections. I put in a FSBO shoes and I come up with these objections because I think they make lot of sense but this is what I think (again, I'm new on this, you are the expert), so I want to learn and I'm still waiting for a solid argument that can prove reasonably why its better to list with an agent than otherwise and specifically that agent and not another. So, no. I haven't developed potential answers because I'm not expert as a listing agent, I don't have experience yet, YOU ARE. Would you like to share the potential answers?




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