Find Out All About For Sale By Owner Home Sales

For Sale By Owner or FSBO is a word that has been floating around in increasing popularity among the real estate community. In the past, the only way that you could sell your home is by using a real estate professional such as a broker, Realtor, or other real estate professional. However, with a realtor costing a sizable portion of the sales price, more and more people are thinking about putting in the time and work into selling the home themselves. This article will talk about what FSBO means, its advantages and disadvantages, and whether it is right for you.

What is FSBO?

For Sale By Owner is a term that means that someone is selling their house without using a real estate professional. In the US there is nothing that requires you to use a real estate agent when you are buying or selling your home. However some states do require that a real estate lawyer read over the contract and that there is one at the closing table when all of the paperwork is signed. Because of this many people have started to turn towards this method and that number has been increasing in recent years. For many people a FSBO sale means that they put a yard sign up, put some online listings out there, and then conduct all of the showings themselves until someone finally buys their home. However this route can include other things like selling your home at an auction, selling directly to an investor, or even something as unusual as a house swap.

Why, And Why Not, To Use FSBO?

The savings is the biggest reason people usually decide to sell by themselves. Most real estate agents take anywhere from 5-8% of the total price that the home sells for. If you sell your home for $100,000, and even using the 5% fee, you will be paying $5,000 just to the real estate agent in the form of commissions. This is a huge chunk of money that could be used for something like a trip, college, paying off other bills, or even adding to your nest egg. Sometimes sellers think that the best person to market their home is the person that knows it best, which is themselves. Most of the good agents will usually be juggling at least a dozen listings all at one time so the agent might not be able to devote the time and attention to your sale in order for your home to sell quickly.

The biggest disadvantage of selling your home is that it takes a lot of work to accomplish. Even though it is not required it does make the process of selling a home a lot easier to use one. They have all of the contacts that are needed for the various professionals that you need involved with a home sale, plus they will usually do all of the showings. If you don’t have an agent you will have to read about all of the state and local laws to ensure that you are proceeding in the best manner, and you will also have to study what type of marketing is working right now. You will have to list the home yourself and you will have to speak directly with the buyers when it comes time to have showings and for the negotiations.

Who should use FSBO?

If you have full time job and other full time commitments, then FSBO is probably not the right route for you. If you are going through a major life change, the extra work from an FSBO may only lead to more stress. If you are selling a home that is extremely unique or would yield a smaller audience of buyers, then having a real estate professional will help you find the right buyers.

On the other hand if you have the time, and are willing to put in the work, you can save yourself thousands of dollars in the home sale process.

How to Turn Every FSBO Listing Into at Least 2 Additional Closed Sales

Working with a FSBO seller can be very rewarding yet once we are done with that listing we need and want more FSBO sellers to work with. You can turn every FSBO seller into more closed transactions by following several repeatable steps on each and every transaction that will uncover more FSBO sellers as well as bring you buyers for your other properties.

More FSBO Listings By Helping One FSBO Seller

Often it is one piece of valuable information that is shared with a seller or buyer that puts them over the edge in deciding to work with you. One of the most powerful ways to get more FSBO listings very quickly is from taking just 1 FSBO listing. If worked correctly 1 FSBO listing can turn into 5 or more FSBO listings very quickly.

This can be done by making sure to share the experience with as many people as possible. Some immediate ways to pick up FSBO inventory is by taking the following actions:

  • Calling all of your current FSBO prospects and sharing – That’s right share with them that you are helping one of “their own”. FSBO’s often like to stick together and if they know you are helping one of “their own” this will allow you to pick up additional FSBO listings.
  • Update your website with the new FSBO listing – whether you have a blog or a website let the world know you are helping a new FSBO seller. Make sure you tell the “story” of how it all came about.
  • Get the FSBO seller to record a “Why I chose to list message” – Do this as quickly as you can in the relationship with the FSBO. Preferably have them record it on a system that allows you to put it on the Internet so even more people can hear about. At the very least it should be recorded on a hotline that people can call in and listen to.

Unlocking the Power of Buying Leads on FSBO properties

Buyers are often overlooked as many real estate agents view them as a “hassle” yet the reality is they are needed to close a real estate transaction. Even if you don’t want to work with the buyers you can always refer them. On all of your FSBO listings I would recommend the following to generate more buying leads:

·         Toll Free Hotline – People love calling these hotlines even today with where technology is so they can hear about the property and what the details of the property are.

·         Text to Phone Service – These services are just now becoming popular and provide buyers with the ability to text, using their cell phone, for information on a property. This allows buyers to quickly and easily see details of the property and the agent receives the users cell phone number for follow-up.

Out of the buying leads that you generate there is at least 1 if not 2 buyers in the group who will buy within 60 days provided you follow-up with them.

FSBO listings can be difficult to get if you aren’t following a system and a pattern for success. I recommend that all my agents treat every FSBO like gold and to not only help that FSBO seller but to find other highly motivated clients that they can help within the next 60 days.