For sale by owner homes are common in smaller cities or towns where quality real estate agents are either hard to come by or simply too busy to deal with the “hassle” of an FSBO home. However, a savvy real estate agent will see FSBOs as far less of a hassle and far more of an opportunity if the can better understand the mentality and motivation behind an FSBO.
As a matter of fact, FSBOs are often an underserved market with a great deal of opportunity for experienced agents to take advantage of. Here are some tips for converting for sale by owner homes.
Understanding Motivation
There are a lot of reasons why a homeowner would sell their home by themselves without enlisting the services of a real estate agent. For many, saving on sales commissions from realtors is a primary motivating factor, but for others, they either want to simplify the process or have been approached by potential buyers directly.
And while these aren’t the only reasons for FSBOs, they top the chart as primary motivators for someone selling without an agent. Before approaching an FSBO, it’s very important to understand the mentality of an FSBO seller. Having an idea of what goes on behind the scenes will make your pitch and your approach more relatable to the seller.
What FSBOs Lack, You Make Up For
Unless an FSBO seller has a strong background in sales or marketing, they’re likely to struggle greatly throughout their sales process. After all, selling real estate isn’t exactly like selling tomatoes out of your garden, but many FSBO sellers see it all the same.
FSBO sellers generally fail to sell their home for the initial asking price primarily due to a general lack of negotiating, sales, and marketing skills which add significant value to a home. A real estate agent, on the other hand, is seasoned and conditioned to do just that and for all intents and purposes will more than makeup for any commissions they may earn by leveraging a better sales price.
Use Your Sales Knowledge to Convert FSBOs
As we’ve already mentioned, FSBOs are a unique market and very much a unique crowd of people. Anyone emboldened enough to sell a home without prior experience gets a nod in our book, but approaching those sellers can be a little tricky especially if they’ve already set their hearts against any agents meddling in their dealings.
For that reason, it’s critically important that you vet and research any FSBO you may want to prospect. Find out more about them, how long they’ve lived in their home, and whether or not they have a background worthy of selling a home. Once you’ve zeroed in on a prospect to approach, then do so gently with the understanding that their listing will likely be on the market for a while. If and when they grow frustrated with their slow sale, you’ll be there to take up the slack.
Financials Fall Through
FSBOs may not understand the entirety of the real estate sales process which means they may very well find themselves looking to close on their home with a buyer whose financing falls through at the eleventh hour. This is another place you as an agent can come through with experience and value.
You, along with Tidewater Mortgage Services, Inc., make a great resource for FSBOs to turn to when things get a little sticky during a real estate transaction. Contact Tidewater today and start a lasting relationship that will help you not only secure more FSBO listings but help you close more sales down the road!
