FSBO/Unrepresented Seller Requests Tips & Internet Marketing Sites

Chet- Thank you so much for your thoughtful comments.  I sincerely appreciate the time you took and the ideas you presented, especially since you've "been there-done that."  I value mentoring and definitely don't like to re-invent the wheel.  So, I'll accept the wonderful feedback you've given, especially in the spirit of feedback.  :)

Having said that, I also think I need to respond for a sec.  Re: the billboard "LS, Special Agent."  I toy around with all kinds of FREE stuff (thanks to agents here on AR!).  While I agree that the image touting "special agent" has NO direct monetary benefit to me or to customers, I find that I like it and I change my images around every so often.  You just caught me in a few weeks' playful mood and I've kept it up on this site for awhile.  Thanks for the reminder, though, that it's about time to change it around.  In terms of benefits, I have PLENTY of benefits for customers, whether they are Sellers or Buyers.  We can't have them think every agent is the same, now can we?  Many of us are not commodities--we are differentiated and not all agents are created equally.  Plus, some agents choose to be part-time, which I think detracts from agents that are full-time and treat this as a career and business. 

Re: the me being "too nice."  Yes, I agree--I AM nice.  Hmm.  I'll have to think about "too" nice.  I tried science stuff and have a bachelor's degree in science--I LOVE science (I understand and I "GET" cold, hard facts) but decided to then work on the soft/mushy stuff in social sciences and earned a master's degree in Social Work.  Go figure!  When I had had enough of helping people who didn't necessarily want to be helped with counseling, I pulled a 180 and got into real estate.  I always am trying to improve my business model/practices and this year decided to really work on my purpose of my business, which is "I/We exist to serve by helping people buy and sell real estate."  So, while money is important to me, I think that doing whatever is in the best interest of the customer should be first and foremost.  (* NOTE:  I do NOT think that the customer is always right.  In real estate, sometimes the customer is DEAD WRONG.  But, with my business, I choose who I work with and sometimes I have to fire them, too.)  When someone is my customer, I will do whatever is necessary to ensure that they are taken care of, even if it means that I either don't get paid or get paid less. 

I agree--I DO GIVE away a lot of information to people.  Sometimes they will choose to conduct business with me, sometimes not.  Whether they choose to use me or not really has little impact on my business but can have a HUGE impact on their experience with buying/selling real property.  Plus, with the Internet, I find that people with eventually find whatever they are looking for, so I make it EASY for them to access the information.  But, my broker has some of the same concerns that you do--don't give away EVERYTHING, which I don't do.  Why would I give away ALL the goodies?  I don't and won't.  If someone wants to use what I have to give, then list with someone else, then fine.  That's their choice.  And, yes, sometimes that exact thing happens.  Then, about 6 months later, I sometimes get a call once the other agent hasn't made good on selling the property.  

In this particular instance, I chose NOT to take the listing b/c I happen to agree with you that PRICE is EVERYTHING.  NO amount of marketing is going to sell an overpriced listing.  B/c this particular couple are all about trying to squeeze out every penny from the sale of their property, they are uncomfortable with doing what it will take to actually get the home sold--which is drop the price appreciably AND list it with an experienced, aggressive agent.  I simply cautioned them that, when the time comes to list, to please NOT choose the agent based on the price and fee they quote but instead based on what will get the home sold. 

I have a service guarantee and I understand the idea of paying them x dollars should a home fail to sell.  But, I personally am uncomfortable to a potentially poor business move.  I pretty much already get Sellers to have a home inspection/WDO and sometimes appraisal, too, when initially listing with me.  I only push the appraisal if we are at odds about price but I find that sometimes when the appraisal comes in, they take that price as Gospel and won't budge.  So, an appraisal is a double-edged sword, so I am usually careful about that.  The cool thing is that this couple are old-hats with real estate and have had multiple rental properties and usually do things themselves anyway.  With the market the way it is currently, they are (like most) having difficulty with finding what works.  I DO really like your idea of continuous price repositionings until it sells.  In fact, since last year I have put in most of my listing agreements that the price will be repositioned every 21 days or 12 showings, whichever is the lesser. 

I like the idea of taking control of Sellers and of course I do TRY to do that from the get-go.  But I'm not sure this couple are really SELLERS (serious and HAVE TO move) or just a potential LISTING ("let's try it and see mentality").  They don't HAVE TO move.  So, I chose not to push anything and am merely keeping in contact with them.  Today's real estate is really only for people who MUST move.  And, like you said, I'm choosing not to take a listing that's not a win-win for both parties (me and them). 

Well, you really HAVE given me a lot to think about.  I will mull it all over and counsel with my real estate mentor.  Yes, I DO treat my business like a business.  I have business hours.  I take two days off per week.  I have a steady pipeline of business customers.  I just met my self-imposed number of closing celebrations for this month (last closing was last Friday the 11th).  I schedule roughly three Seller initial consultations per week.  I am seriously considering "upping" this number, though, due to the sheer number of Sellers who cannot afford me.  Plus, I don't discount my services.  By that, I mean I don't low-ball my listing fee.  In fact, you should have seen this lady's eyes when I said that for this year I am charging x%-x% per listing!  She about fell over.  Actually, I WILL discount my services should someone be a repeat customer or have me as their agent for volume transactions (buy/sell 5-10 homes with me and YEP I'll go easy on you with my fee). 

He he.  I just talked briefly with another more experienced agent in my office and she, too, said to not GIVE anything away for free. 

Chet, I thank you so much for your feedback.  Isn't AR great?!  We can get good feedback (whether we agree or whether we disagree) and everyone is so much more the wiser after the comments.  Thanks for helping to keep me sharp.  :)

Joe-  Thanks for the comment.  Yep, I typically give away FREE stuff for FREE.  No real time, energy incurred and I get to meet a lot of people who eventually WILL contract for my services. 

Bryant-- Aww, shucks!  Thanks for stopping by.  Yeah, I agree with you that my posts are sometimes lacking but, when someone makes a great comment, it CAN get my creative juices flowing and sometimes I amaze myself. 

Oh, David-  Sorry, I almost missed your comment.  Thank you!  And you can work with your preferred B.R.O. agent and do some really neat things with marketing on these sites!  Go get 'em!  :)  Happy Friday to you. 

Shannon-  Awesome!  Where I used to be, they did all kinds of print ads; The Real Estate Book was my favorite.  But where I am currently, they focus VERY much on the Internet, which is a good thing.  I was just reading up a little bit (and registered for) RealBird.com.  Have you signed up with them?  Looks to be interesting but it isn't for the general public; you must be an agent or broker (or otherwise related to the real estate industry). 

Wew!  Thanks to ALL for your recent comments.  I apologize for not being able to comment on each and every comment but I'm just plain TOO BUSY this month, thank goodness.  :)  I do, however, read and think about each post. 

Lanre-  Hello and thanks for the comments.  Hmm.  Well, yes, I DO eventually intend to get the FSBO listings sometimes, especially b/c--statistically--8 or 8 out of 10 unrepresented Sellers WILL eventually list. 

However, I do keep in mind that some FSBOs are perfectly capable of selling on their own (experienced Sellers, experienced landlords, experienced investors, etc.).  I have actually helped people sell their own properties, when it was in their best interest to do so.  I just usually think it's in their best interest to list with an experienced, results-oriented agent.  Selling a home on your own is not for the faint of heart, not for the first-time Seller, not for Sellers who sold one property years ago, etc.  Also, most Sellers are just trying to "save the commission" and it's been shown that a good agent can actually NET the Seller MORE MONEY if it's listed than if they Sell on their own, so that shoots down THAT objection. 

What I do with FSBOs is I find out their motivation for moving (what is important to them about moving) and I see if they meet my criteria to list (they have money/equity, motivation, and urgency).  If they meet all 3 criteria, then I show them, graphically, how I can help them.  If they only have one of the three, I usually pass.  If they have two of the criteria, I simply keep in touch with them.  I belong to By Referral Only, which has the best, most comprehensive programs for agents and lenders.  I have adapted one of their programs to get listings in specific neighborhoods to target FSBOs.  It REALLY is helpful to Sellers, whether they are represented or unrepresented by an agent.  From the program provided to me, I send Sellers a 19-page booklet on How to Get Top Dollar, I send Newsletters that are pre-made and entirely changeable.  They are usually about how to get properties ready for sale.  I offer lots of FREE stuff (see above). 

From a 2-page FSBO-specific letter offering 4 FREEBIES and a Newsletter I sent a FSBO on last Monday, I received a call from the Seller Thursday morning, asking me to come help her sell her home.  Pretty good return on my investment of 4 pieces of paper, ink, an envelope, postage (all provided by my company), and about 10 minutes of my time to research the Seller's name, print, and send it all.  I didn't check the Do Not Call list b/c the tiny FSBO sign in the yard didn't have space on it for a number.  Oh, there IS the monthly cost of By Referral Only, but that has already paid for itself and they continue to come up with state-of-the-art trainings and materials that help me continue to expand my business.  But you can also get stuff for FREE on the Internet that may provide a similar FSBO Program.  :) 

Oh, for any FSBO that I approach directly, I don't say, "Oh, I have a Buyer..."  I usually either go in with helpful information for FREE (truly free) or I say I'm here to list it.  With the helpful, FREE info, I almost never say the "L" word (list).  In this market, when a lot of agents are talking to FSBOs, I find that just giving the FREE info is the best way to help them.  When the Sellers are ready (please read "sick and tired" of trying to sell on their own), they sometimes call the agent that has been the most helpful, NON-pushy person--which is usually me.  :)  Also, the materials I have provided every week or so are Top Of The Line and no other company or person offers them to Sellers.  I know, b/c I get at least one call per week from Sellers saying they absolutely LOVE what I'm sending them.  A lady called me last Friday, saying just that and that, while they're not ready to list this month, when they return to Orlando in the fall, I'm the person they'll call.  They might, they might not but I'm changing their follow-up plan from weekly to sending them the Newsletter on a monthly basis so that my name, number, and websites are right there in front of them when they return.