Converting a For Sale by Owner
Converting a For Sale by Owner (FSBO), is a huge opportunity for agents that recognize the income potential. There are thousands of for sale by owner homes and they represent a good percentage of the homes available for sale in any market. The biggest hurdle for converting a FSBO is the fact that many of the sellers want nothing to do with real estate agents.
Therefore, making the conversion can seemingly be difficult at first because most owners believe that they can sell their homes better or keep more of the profit by going on their own. The trick to bringing them over to your way of thinking is not to try and sell them on your services at first, but instead to provide them with information so that they will “see the light” and understand why working with an agent is a better option.
Successfully Converting a For Sale by Owner
Most FSBOs will give up after a few weeks or months and then list with an agent, it is almost inevitable. You just have to be there at the right time to take advantage of that fact.
Research: So why do people sell homes on their own where there are perfectly good real estate agents who can do it for them? There are actually two reasons, the first is that many owners believe with the power of the internet and other tools that they can sell their homes just as well as an agent can. Second, they don’t have to give up the 5-7% commission if they do the work themselves.
In the mind of the homeowner, these are valid reasons for not working with an agent. This means that you are going to have to demonstrate your abilities and not just tell homeowners about them.
Call the Homeowner: Call up the owner and ask a few questions like the following;
– Asking price?
– Anything wrong with the property?
– Why are they selling?
– How long have they been trying to sell?
– How quickly are they looking to sell?
Conversion: Ask them if they are willing to work with a buyer’s agent who is someone that will take 3% commission of the sale. If the homeowner is not willing to pay anything to an agent that brings them a buyer, just move on as they will almost be impossible to convert. However, if they are willing to pay an agent that brings a buyer, make an appointment to come over just to look in case one of your buyers might be interested.
Come over to the home, take a few notes and ask any pertinent questions about the property. When you are done, just hand the owner a business card, thank them for their time and drive away. Never ask if you can list their home as that is a big mistake when trying to convert a For Sale by Owner.
Be Patient: You’ll want to stay in contact with the owner and call perhaps once a week to see if they need anything like a blank sales contract or perhaps a property disclosure form. The key here is simply to be nice and courteous while never asking them if you can list their home.
Once they realize that their efforts are not working, you’ll be the first real estate agent they call when they decide to use the services of a professional. Because you never directly pressured them and were always providing value, you created the right impression for them to trust you in selling their property. Education is a powerful tool and once the homeowner becomes educated, an agent is the logical solution.
Resources: If you are interesting in leads for converting a for sale by owner check the following websites: www.FSBO.com, www.craigslist.com, www.forsalebyowner.com, www.homesbyowner.com, www.byowner.com, www.zillow.com/homes/fsbo, and www.VRBO.com Happy FSBO converting!
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