Flippin' Those FSBOs

Pain and the Gain

 Most agents normally approach a For Sale By Owner to secure their listing and usually encounter some pretty incredible resistance and competition. That's why, sadly, many agents just throw in the towel and say, "Why bother?"

Another less competitive approach would be to go after their BUYING BUSINESS-the purchase of their new home once they do sell.

Here's a few scenarios:

1. You offer a free service as a door opener-perhaps professional brochures, brochure box, even a free IPIX tour on a diskette they can hand out to their potential buyers.
2. In exchange for the free service, have them agree to keep a buyer "sign in" log and provide you the results on a daily or weekly basis. (You're getting buyers from them!)
3. Plug them in to your home buying process with HOLMES-the home detective to find their next home. If they are moving out of the area, get their permission to refer them to an agent out of town through our relocation contacts. Either way, you'll generate income from the Flippin FSBO.

We know the travails FSBO's have in trying to "save" the brokerage fee. If you're different, and take a totally different approach to marketing the FSBO, I think you'll have a lot less frustration, and build you income in the process.

Remember, real estate is a relationship business, start your relationship with the FSBO early, and you'll succeed.

Successful FSBO Marketing

Glenn M. Race, CRB,CRS,GRI

            Over 80% of fsbo's ultimately list with an agent. Your goal is to be there when they are ready to make that decision. Here's some tips on what to do to be "there."

1. Begin by finding the fsbos from yard signs, newspaper ads, FSBO.com, or word of mouth.

2. Determine the owner's name from title company lists, metroscan, or the tax function of Lightning.

3. Contact the FSBO by phone using the following script:

" Good Morning, ____________, my name is ______________from __________________realty. Are you the person who has your property listed "for sale by owner?"  (Wait for the response. If yes, continue.)

"As a real estate professional working in this area, it's important for me to see all the properties that come on the market so I can provide complete and accurate information for my clients. I was wondering if it would be possible to preview your home at a time convenient for you?

(Never say you have a buyer for their home...even if you do)

If the answer is yes, schedule the appt. If the answer is No, or if the seller says, "You're just trying to get the listing," Respond with:

"I promise I'll never ask for the listing on your home."

If the answer is still No, go on to the next lead.  If the answer is Yes, schedule the appt.

4. Meet the seller at the property and thank them for the opportunity to view their home. As you walk through the home, take notes.  DO NOT discuss their listing price. When finished, thank them again, and as you step out the door, turn to them and say, "Oh by the way..." then offer them one of your "Oh, by the way" Kits.

"Oh By the Way" Kit

Some of the items you can include in your kit:

**A list of required disclosure statements(but not the real forms)

**A list of required documentation to close a transaction including Federal and State environmental hazards disclosures, lead based paint, Natural Hazard Disclosure requirements, Local Option, FIRPTA, etc.

**Complimentary "Open House" signs. Remember, many FSBOs are trying to save money. Have this note on the bottom of the sign: compliments of ______________, Prudential California Realty.___-___-______.

**Guidelines for qualifying buyers, and the name of your favorite lender. (the lender will try to sell you to the FSBO while prequalifying their 'buyers'.)

**Tips for showcasing or staging their home.

**Sample open house guest register. Fsbos generally don't know who is coming through their home. Tell them this is for their security. Hopefully, you'll encourage them to refer the "lookers" or those with no interest to you!

**Relocation assistance if they're moving out of the area.

5. If the seller questions why you're being so nice and helpful, reply by saying:

"I know you're trying to sell your home by yourself, I work by referral and I'd like to earn the right to receive any referral business you might have."

6.    Continue using the "oh by the ways" to see them on a regular basis. Follow up until they sell the property, take it off the market, or list it with you.

                        Working with FSBOs takes confidence, and follow-up. Remember the "forneaus" concept.  The agent who is still following up after 4 no's is usually the one they list with.

Need some additional ammunition for FSBOs? The following list of top 10 questions for FSBOs is excellent to put in your "oh by the way kit" for subsequent visits. Make sure you include the copyright at the bottom if you reprint this excellent piece.

Ten Questions To Ask Yourself Before You List Your Home

Thinking about selling your home yourself? Before you make your final decision, can you answer the 10 key questions listed below?

If you can't answer at least 9 out of these 10 questions, you may be putting your most valuable investment—your home—at risk.

            Do you know how to:

1.     1.      Obtain and qualify prospects, eliminating professional lookers and non-qualified prospects?

2. Diplomatically handle objections and overcome them?

3. Assist the Buyer in qualifying for and obtaining a loan?

4. Follow up with prospects without weakening your position?

5. Handle the sale of your buyer's house if they need to sell prior to purchasing yours?

6. Calculate and explain the closing costs for both yourself and the buyer?

7. Validate your asking price to the Buyer and the Appraiser?

8. Complete the required Federal, State, and Local disclosure statements?

9. Screen Buyers prior to showing your property so you won't be taken in by someone who is unqualified, or unethical?

10. Determine whether or not your property has any hazardous substances, requires special hazard insurance, or needs "retrofitting" to meet existing Federal, State, or Local requirements?

Score: _____________

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