Everyday as I drive along my normal route I come across a new FSBO. I haven't yet devised a plan to speak with any of these property owners but my mind is constantly wondering. There is this one FSBO down the street from my own home which has been listed for probably 2-3 months now. Just this week they wrote on the sign Price Reduced. This boggled my mind for 2 reasons, one: does anyone really know that this home is for sale in the first place (it's not a well travelled street), 2: does anyone know what the original price was to begin with?? I understand that people want to save money by not paying comissions which drives them to FSBO anyways. Aside from that I can't find a good reason to put your home FSBO. At least if you go with a Real Estate professional you have some safety as most clients are getting preapproved for mortgages so you know they aren't total creeps. Then you also have the safety that you will have someone in the home with you when you are showing the property. Say you put out the FSBO sign and then some guy comes knocking at the door and says I'm interested can I take a look around. Of course you are going to allow him to come in and you don't have any idea who this person is. Plus who knows that your home is really for sale anyways, if you live on a quiet street people may never know your home is for sale as they mainly look on Realtor.com or the listings available from the agents. So I ask other than commission why would you do FSBO? How do you approach a FSBO to list with you???
Personally I'd rather list Expireds.......but I have one friend that specializes in listing FSBOs and he does quite well getting and selling those listings.
FSBO's are easy. I haven't worked them much lately because they are typically over priced and our market is slow. The best way I have found is to call and set up an appointment to see their home. Tell them you are coming alone to preview it for a client you have been working with. Ask if you can take a few pictures to email your client. A few days later call them and tell them that your client wasn't interested but keep them on the line and ask questions about how they determined their price, what kind of response they have had to their by owner sign and just be friendly. If they seem receptive I sometimes offer to make them a simple flyer out of the photos I took earlier. Follow up in a week or so with "hey, I just wondered how it was going with the sale". I never once ask them for the listing but they usually call me when they give up on the by owner route. I have also offered to handle all of the paperwork for half the commission if they do happen to stumble on their own buyer. Just stay in touch with them!
Other than commission, the only other complaint I have heard from FSBO's is that they feel they would like more power in the listing/showing process. Other than that, you are right....not much benefit to listing FSBO.
I wouldn't be deceptive when trying to get a FSBO or any business for that matter.
Be upfront. Approach them and tell them you've noticed they've had their home up for sale for a while and you'd like to help. Arrive prepared with a presentation of how you are going to help them. Ask if they have time to sit down and talk.
If they're open to working with a REALTOR they'll be willing to listen. But beware...some FSBO's absolutely, positively hate REALTORS, so bring your thick skin.
I don't see my approach as deceptive at all. What I am saying is just to make friends and stay connected. I have been in real estate sales for years, but if I want to buy a car I go to the dealership when it is closed. I hate to be sold and I don't sell others. I don't ask people to buy or list. I make a connection and if they have a need they will ask.
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