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Why FSBO Who Refuse To Hire Agents Make The Best Customers
In a buzzing real estate market when every agent and their dogs are signing exclusive representation contracts with homeowners, FSBOs do pretty well for themselves most of the time.
Because when a wave of demand comes to shore, riding the wave alone can be a big enough advantage to pocket a windfall.
So it would be very tough to convince an agent to bother with FSBOs when they are already up to their necks with customers… And FSBOs have already decided not to hire anyone to help them sell their homes.
But would you really say no to extra customers, business, and commissions?
Here’s 6 reasons why they can still be your best opportunities.
1) Easy leads
What kind of a marketer would you be if you ignore the very segment that makes it a point to be noticed in the market?
Owners are actively marketing themselves on the market, and it doesn’t take a minute to make a courtesy call of some sort. They can reveal things that will eventually make them a customer of yours.
The thing with the preference of selling their homes themselves usually fall to 2 reasons.
- They do not see the value agents bring to the table
- They have had bad experiences with agents in the past
It almost never is a matter of saving money. Any reasonable person, homeowner or not, can understand that paying a $5,000 commission is negligible if that agent can bring the transaction price up by $10,000.
It’s a no-brainer.
The problem is that too many agents go around offering empty promises and are more than happy to sign exclusivity agreements and sit on it.
It is your job as a quality agent to serve FSBOs and show them what being an agent is really about.
2) They are motivated sellers
How much more obvious cues do you need to observe to decide that these are motivated sellers?
These homeowners want to sell. So much so that they have assumed responsibility by taking action to do so.
If you are looking for motivated sellers, here they are. And they are waving at you.
3) No gatekeepers
If you have ever been given the run-around in a deal, you will know just how frustrating it can get. You could very well spend a week talking to someone, then realise later that this person was not the decision-maker.
The contact information you retrieve from classifieds listings, websites, and front yard signs are direct communication lines to the decision maker itself. Although not impossible, seldom does these contact information lead anywhere else but the top.
This means that if you hit your first call with the right note at the right time, you could very well pocket a new client with little effort.
4) Easy prospecting
Rookies may feel that success in real estate is a numbers game. And they could be correct in their own right.
But veteran will know that it is a game of prospecting. Quality prospecting to be exact.
It is unwise to spend time cajoling 100 prospects to acquire a client when you can get the same results with 10 prospects. This is about quality prospecting instead of quantity.
It is the new economy after all where working smart is the buzz word. Rookies eventually grow out of the numbers game.
Unlike going after expired listings, FSBO prospects are as obvious as a flare in the ocean night. Don’t let them go to waste.
5) Many of them will fail
Now this is not a direct dig at FSBOs. Agents suffer the same failure rate as FSBOs. There will always be segments of listings that don’t sell.
The difference with FSBOs is that they might have a change of heart after suffering failure in their endeavors. They might start to question themselves about whether they have made the right decision not to hire an agent. They could be open to hire one to see if a better results can be achieved.
This means that you will be the first on their minds if you have introduced yourself at some point and followed up with friendly calls.
6) FSBOs seldom get the best prices
There’s nothing wrong with getting a lower closing price.
Some homeowners knowingly sell lower as they want to move the sale as fast as possible. And going the FSBO route allows them the flexibility to do so.
But that is a less common scenario.
Most of the time FSBOs want the best of both worlds. They want the highest prices, yet are not willing to pay any commission to anyone. They’d probably even reject the commission of a mortgage broker if they could.
If their thirst for high price is greater than their hate for paying commission, this can leave a window of opportunity to sign them up in your portfolio.
If you can demonstrate a track record of how you have helped other homeowners on getting crazy prices in the neighborhood, it is an easy close.
You will of course, have to be able to walk the talk.