Real Estate Blog - PROSPECTING FOR SALE BY OWNERS - LET THE OWNER KNOW IT'S NOT AS EASY AS THEY THINK

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PROSPECTING FOR SALE BY OWNERS - LET THE OWNER KNOW IT'S NOT AS EASY AS THEY THINK

WHY HOME OWNERS BENEFIT FROM THE SERVICES OF A QUALIFIED LISTING AGENT OR BROKER
TO MANAGE THE SALE OF THEIR HOME- Not What You Think.

We often read articles by real estate agents or brokers about "Why a For Sale By Owner or Unrepresented
Seller needs". . . the help of licensed real estate practitioners to help them sell their home. Unfortunately, for
the agent and brokers writing about their services, they all too often describe a list of services that the OWNER CAN DO FOR THEMSELVES.

EXAMPLES:

AGENT: I can put you in the MLS.
Owners can do this for themselves these days for almost nothing.

AGENT: I can prepare color brochures for your home.
Anyone with a computer or access to a color printer can do that these days.

AGENT: I can provide a lock box for your home.
Anyone can purchase a lock box at most retailers who make keys, or on the Internet.

AGENT: I can provide you with yard signs and brochure boxes.
Home owners can buy these on the Internet or at the local Home Depot or Lowes. The signs may not be as nice as broker signs, but they work. Again, very professional signs can be purchased for about $25 from FSBO listing services.

AGENT: I can hold Open House for you and advertise your home in the Newspaper.
Home owner sellers have been holding their own homes open forever and advertising
them in the newspapers for as long.

AGENT: I can put up a web page for your home for sale.
This service is available at a small fee on the For Sale By Owner web sites.

DON'T OFFER TO PERFORM SERVICES FOR SELLERS THAT THEY CAN DO FOR THEMSELVES.
Unfortunately, most agents contacting owners concentrate on the tasks that any home owner seller CAN do for themselves. It's the listing fee that Home Owner Sellers are trying to avoid. Sellers are perfectly willing to do the work to get their home to market to save money. But, what happens when they DO manage to have an offer??? Do they know how to manage a transaction???

ENTER AN EXPERIENCED LISTING AGENT

WHAT ABOUT THE REAL REASONS SELLERS NEED AN EXPERIENCED LISTING AGENT.
Consider the contracts that we manage on a day to day basis and the many problems that we AVOID because we, real estate agents and brokers, most of whom are REALTORS know can keep our seller clients out of trouble and create an atmosphere for a smooth transaction.

FOCUS ON PROCESSES THAT HOME OWNERS USUALLY CANNOT DO FOR THEMSELVES.

* We are prepared with attorney prepared contracts that are approved for real estate transactions in your state, county and town where special disclosures are often required.

* We are knowledgeable about the DISCLOSURES required for a fully legal transaction that protects buyers and sellers under the law.

* We are knowledgeable about the prices of listings and sold properties in the area of your home so that you have the facts to help you price your home to sell.

* We are experienced working with lenders, appraisers, home inspectors, title companies.

* We are capable of qualifying prospective purchasers for your home with credit review, pre-qualification or pre-approval and financial management of the contract.

* We can protect you with broker trust accounts for deposit money in case of buyer default.

* If the purchaser of your home is represented by a licensed real estate practitioner, we will make sure that proper procedures are followed for disclosure, contracts, inspections and settlements and that the Buyer's Agent follows proper and fair procedures.

* We have the knowledge to protect you, the seller, in cases of home inspections, pest inspections, to make sure that repairs are within the scope of the Contract of Sale.

* We have the knowledge and experience to manage the title examination and settlement procedures to insure a smooth transaction within the negotiated times in the Contract of Sale.

* We can help you get from the LISTING of your home to the CLOSING table in a smooth transaction with a minimum of risk for you, the owner / seller.

Selling your services to For Sale By Owner or Unrepresented Seller is a lot more than having a pretty yard sign.

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 05/06/2007 09:38 AM

Comments (40)

maryland listing agents, virginia listing agents

40 Comments on PROSPECTING FOR SALE BY OWNERS - LET THE OWNER KNOW IT'S NOT AS EASY AS THEY THINK

MAY

2007

This is it Lenn! Excellent ideas on how to truly market to FSBO's. Of my reading and acknowlegment on how to market to FSBO's from all sides, this is some of the best stuff I've read. Gold Star from me for an early morning epiphany. Thanks Lenn!

An important one is that we work closely with the appraiser to get the highest value for a property. It is us who the appraisers come to for comps.

Thanks Jason. Hopefully, the Rain Gods will deem it suitable for a STAR.

I read articles about farming FSBOs all of the time. They are always the same old, same old. In fact, most of the FSBO articles I read wouldn't persuade me to pay $Thousands of Dollars for someone to do for me what I can do for myself.

Thanks Luke. Anyone who reads this article will see your very important note.

I knew I'd forget a few.

Lenn,

This information is good to know when targeting FSBOs. The agent that can show true value will ultimately get the listing.

Thanks Dan. And if there is one thing that we DO know is that some agent is usually going to get the listing. Best to stand out and offer some really worthwhile services. Let the seller know what they don't know.

EXCELLENT! Thank you so much for posting this!!!

Hey Missy. I think perhaps you are right. I posted it to MEMBERS ONLY because it's sort of "inside real estate" talk. But, I believe I'll change it.

Thanks.

Sage advice, Lenn, as always. I would add one more: an experienced agent can, in all likelihood, negotiate a better offer from a buyer or BA than an unrepresented seller could on their own.

Lenn: This should be part of a primer for all real estate professionals. Thanks! Also recommended as a featured post.

EXCELLENT! Thank you so much for posting this!!!
Karen E. Rice THANKS Karen. My pleasure. Hope it helps someone in the future.

Lynn, excellent post. Can you tell me why you posted it members only ? I don't quite understand that yet. Is is that you don't want the public to see? This is really on the money for sellers and if it's not out there I heard google will not pick it up? True or rumor ?
Missy Caulk - FIXED.
_____________________________________________________________________________________
Brian - Thanks Brian. We know we can, but that's something an individual agents will have to prove in the end.

Lenn: This should be part of a primer for all real estate professionals. Thanks! Also recommended as a featured post.
Roberta Murphy - Thanks Roberta. From your lips to the Rain Gods ears.

Thanks Lenn, these are fantastic points that I am going to print and put up on my board.

Nice points. I have bookmarked and will use as a references. Great job!

Lenn: Thanks for articles full of info....another bookmarked from you!

Great points, the FSBOs don't realize how much work a Realtor really does, the same here on my end of the business, people think we just take some information enter it in the computer and the loan is done. Boy don't I wish. A good Realtor is worth every cent they get paid!
Leo Namiot - You bet Leo. So is a good loan officer.
_________________________________________________________________________________________
Thanks Lenn, these are fantastic points that I am going to print and put up on my board.
Mana Tulberg Thanks Mana. I love being on folks' boards.

Nice points. I have bookmarked and will use as a references. Great job!
Gary Waters - My pleasure. Glad to help with an idea here and there.

Lenn: Thanks for articles full of info....another bookmarked from you!
Celeste - Thanks Celeste for commenting AND for the bookmark.

Thanks Len. You've managed to hit every point.

Fran

Thanks Fran. Glad you enjoyed the article. It was fun.

We have SO MUCH more to offer than a few signs and MLS entry.

Lenn,

Thanks for this post! Mark and I have been prospecting FSBO's for a few weeks now, and it is going awesome! I absolutely enjoyed the list of items that owners cannot do for themselves. The listings I have gained that were FSBO's are extremely grateful and apprieciate of our services, as I say with prospecting FSBO's. "you gotta play to win!" Call me the FSBO Queen!!

Good job Gloria. If you like to list, it's a great way to prospect. For me, I prefer to just sell them. I've sold some great FSBOs over the years. When I have a buyer for a relatively small area, I drive every street and road following FSBO signs. But, I have no interest in listing them.

MAY

2007

In the New York metropolitan area we use attorney's for the contracts and escrow. Some for sale by owner's here think they can do it themselves hire an attorney and have it all covered. Some attorney's believe that by virtue of having their law degree they are experienced negotiators. I see a very clear distinction between what lawyer's do and what we agents do. An experienced negotiator in real estate is the crux to making or breaking a deal. Timeliness is also part of the equation. This is where the agent should shine. Thanks for a great post.

Thanks for commenting ALL.

Meriam - Understanding how things work in NY, makes me very glad that agents manage the transactions in my area.

Excellent blog!

Lenn, you are my hero and have been for quite awhile. Your knowledge of SEO amazed me when I was first learning a bit about it. You share willingly and you know the value of your services. Your confidence in "telling it like it is" is awesome. I used to read your posts on RealTalk and wonder how you ever had time to sell homes. but I knew you were selling and selling. Thanks for being you and for sharing your knowlege of the business. BTW one of my favorite memories is a 10 day chartered sailboat on the Chesapeake.

Now that was a beautiful presentation! Thanks for sharing!

Lenn: This not only needs a star, but a five as well! I’m book marking this for reference (our little melodrama).

Jay

MAY

2007

Also, I feel it would be best to tell them, "Would you feel safe letting a not so perfect stranger into your home with out an appointment." That's where we come in to save them from this task. Plus we bring them qualified buyers. Which also works when you are going after the FSBO market.

MAY

2007

Lenn, very good post! I love FSBO, and this article was so different from everything else I've read so far. This could be the difference between getting the listing and losing it to someone else. (They usually end up listing the property with someone anyway). I'm going to make sure that from now on that "other" person becomes me!

Thanks.

BTW, I really enjoyed your "missed posts" post! I need things to be set up for me like that. With 4 kids there isn't much time for browsing AND reading. Thanks for streamlining it for people like me!

Thanks Lenn, for once again forcing us to look at something most of us do the same way every day, and then showing us how to do it better differently. You're a great teacher.

Lenn - Such a great statement of truth! One of the reasons FSBO's don't net as much as we can get for them is the fact, we reduce the risk. If someone wants to go to the FSBO to buy a home, they are only there to get a deal. They know they are taking a risk, therefore, expect to get a reduced price. It's like buying from e-bay versus Best Buy.The Rain Gods must have been sleeping on this day! I have given you 5 stars! Now on to read the others : )

MAY

2007

Great post, I feel one of the largest issues we have as Agents is how we view ourselves. Many agents go to a "Listing Appointment", to hopefully get "A new Listing". Many times we come off to the homeowner in a manner of "Let me list your house!" while it should be "Let me market your house!".

There's a huge difference in an approach to marketing, and providing full service than just the general term of LISTING. Listing says to a owner that you're going to advertise it SOMEWHERE, while a MARKETING CAMPAIGN says to the owner that you're going to market it EVERYWHERE.

The more we come off to owners as professionals, the better it will be for the environment we work in.

MAY

2007

Great post, thank you.

First post read in my Marathon "reading session." Excellent thoughts Lenn. I am working right now with an attorney whose lack of real estate knowledge has him thinking that a home is worth $150,000 more than it can retail on the Open Market! The 3 page letter that I wrote to him on my client's behalf is something that an average seller CANNOT do! That's why you need a Realtor. Another post book-marked. Thanks.

JAN

2008

Great post, this will hopefully help me overcome more FSBO objectives!

Christine

Christine. Good for you. I can't see how it helps to tell the owner that you can do what they can do for themselves. That's why they're FSBOs in the first place. We have to offer more.

MAR

2008

Lenn - I just came across this blog and wanted to say "Thank You" from a new agent for providing excellent advice.

Stacey. My pleasure. Tour ActiveRain and you'll find a wealth of helpful information.

APR

Great post!!! I never thought of it that way!!

Thanks Ryan. Indeed. I never believe that stats that claim XX% of homes sell by owner. Many of those claims include MLS only listings where a buyer's agents does all the work.

Pure FSBOs do not, IMO, sell easily or often.

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