How to Approach a FSBO (For Sale by Owner)

Reblogger Lise Howe
Real Estate Agent with Long and Foster DC AB15253

I love this post by John Meussner which shows a soft way to approach for sale by owner homes so that the sellers ask you to list their homes.  I think that the advice to approach sellers with well deserved confidence is spot on! After all, don't we know a lot about the market that we can share with them?  

Is this going to be part of your business in the last quarter or heading into 2017? We are putting the systems in place to start off 2017 as strong as possible.  

Original content by John Meussner NMLS #138061 MMCD #1141

How to Approach a FSBO (For Sale by Owner)

 

 

     "Work expired listings & FSBO's!".  This is the advice nearly every new real estate agent receives as a way to strum up business quickly and get started on building an empire of listings.  At least that's how it seems.  The problem becomes when every agent starts doing this, the FSBO's and Expireds get caught in a real estate agent free for all, and no matter how good their intentions may be, agents can easily come off as hyenas.  For Sale by owner marketing

 

 

     So what's an agent to do?  The fruit is RIGHT THERE!  They're OBVIOUSLY wanting to sell their home, so are the only options to either leave them alone & miss out on the opportunity, or put on your hyena suit and hammer the phone line?  Although those may be the 2 most common approaches, the good news is there's a 3rd option - what I like to call a 'soft' approach, or more broadly, "doing it right".

 

 

     To increase success when approaching a FSBO, you need a couple of things - first, you need to be on your "A game" and approach with well-deserved (because you've educated yourself...more on that later) confidence.  Second, and most important, you'd better dial that number or knock on that door with some value in your hands.

 

 

     While percentages certainly vary from market to market, the overall numbers make it obvious that using a Realtor is better than selling a home FSBO in most cases.  Sales prices are higher, there's less risk to a seller, the process is easier, and a home sells faster.  What's not to love?  For many homeowners, it's simply a lack of information, or worse, misinformation they've received that makes them keep real estate agents at arms length.  For this reason, the "you're wrong and here's why" approach just doesn't get good feedback.

 

 

But value?

 

 

     Showing up and offering information about the local market is value.  Comps are value.  Insight into buyer trends and staging ideas is value.  Do you want the listing?  Yes!  Are you going to ask for it?  No.  In fact, in most cases you don't have to.  Something like 90% of FSBOs that do eventually sell, sell with an agent listing the property.  Why not show yourself as the local professional with a ton of knowledge, and if & (most likely) when the time comes, you'll be the local pro they need to get the listing up and the home, finally, sold. 

 

 

     Next time you approach a FSBO, think first about what value you're offering them.  Do you have local market data perhaps they haven't seen? Do you have the time to stop by, introduce yourself, and offer to check out their home to see if there are popular staging methods they can use?  Some people call this "working for free", but I call it building rapport.  Let's face it, until a transaction closes, we're all working for free.  If you're a partner of mine in business, you may know about my prime services suite, which would even allow you to create (ok, have created for you, at no cost) marketing materials for a prospective FSBO client.  There are a ton of things you can do, but doing something of value for a FSBO will at the very least turn you from just another agent to someone a home owner knows - that's WAY more impact than an annual refrigerator magnet will ever get you.

 

 

     Working the FSBO market is a great way to pick up listings.  In fact, simply having the guts to call a FSBO or stop by will set you above a lot of others.  Doing it right, however, will lead you to success far more often than putting on a hyena suit and joining the pack.

 

 

Oh, and those expired listings and the approach to take there?  That's a different blog for a different day.

John Meussner

NMLS# 138061

Visit My Website!

 

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Rainmaker
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I ask FSBO's for disclosures. Most don't have them and then I tell threm them dangers.  It is a great way to start a conversation

Sep 29, 2016 11:17 AM #1
Rainmaker
1,229,816
Lise Howe
Long and Foster - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

William Feela - That is a really good idea - do you work with many FSBO's? 

Sep 29, 2016 11:36 AM #2
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

I don't chase FSBO's but this post is a good way to establish a plan and chase them.  Good choice for a re-blog

Sep 29, 2016 12:47 PM #3
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Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Million Guild Member Cert Luxury Home Mkting Spec

Bring on the FSBO and Expireds.  I will take you heads up on each and every one.  Lise Howe as the Great Tony Dicello would say "Allow me 15 minutes to show you why several homes have SOLD around you while yours has been on the market for 6 months and how we get homes SOLD.

Sep 29, 2016 01:33 PM #4
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Paul S. Henderson, CRS, REALTOR®,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

Another fine example of a re-blog to what I need to work on Lise Howe. Thank you. 

Sep 29, 2016 01:51 PM #5
Rainmaker
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James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Lise.  You just gave me something I'll use to talk about at our next training session.  thanks

Sep 29, 2016 07:49 PM #6
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you fo reblogging the post. I do not see many fsbos in my market area.

Sep 29, 2016 09:36 PM #7
Rainmaker
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Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Great choice for a reblog and he certainly gives some great advice with how to deal with FSBO's.

Sep 30, 2016 02:35 AM #8
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Costa Mesa, CA
#MortgageMadeEasy Costa Mesa, CA 484-680-4852

Thanks for the reblog, Lisa!  Glad you found the info valuable : )

Sep 30, 2016 03:50 AM #9
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I used to work this market and had great success but it was back in the days i was building a business and frankly it takes lots and lots of time.  It is a great place for anyone to know where the sellers are.

Oct 01, 2016 02:02 AM #10
Rainmaker
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Lise Howe
Long and Foster - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Debbie Reynolds - Excellent point - it is hard work but it does pay off for those who are willing to put the time in - Happily most people aren't willing to do that! 

Oct 01, 2016 05:37 AM #11
Rainmaker
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Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Guy

Thanks Lise and John, Great advice FSBO's need help we just have to be there to offer it 

Oct 01, 2016 12:55 PM #12
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Lise Howe

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