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Join Exit Realty's "Top Producers Club" If you are going to join EXIT Realty... LET ME SPONSOR YOU! I am the owner of TopProducersClub.com, MaxLS.com, and xOwner.com. I will add you to the Top Producers Club and you will receive these added benefits for FREE...
Questions? CALL Philip 864-380-9463
How Does It Work? Imagine this conversation between YOU and a FSBO... YOU: Good Morning. I noticed that you just put your home on the market and you’re trying to sell it yourself. My name is John Doe from ABC Realty. ANGRY FSBO: John, let me stop you right there…you are the third real estate agent that called this morning. I am going to sell this home myself. YOU: And, I think you will. But the reason I’m calling is, I want to help you. Let me explain. I will list your home on the MaxLS website for free. “For Sale By Owner” websites are great, but most homebuyers prefer searching the “Maximum Listing Showcase” that includes both Realtor and FSBO homes for sale. I will help you get more exposure for you home. INTERESTED FSBO: What’s the catch? Do I owe you any money for this? YOU: No. I’m doing this for you for free. All I ask is that if you do decide to hire a real estate agent, please interview me first. Also, I have a sign that I will give you for free that says your home is featured on the MaxLS. When would be a good time for me to come by? EXCITED FSBO: Well that sounds great. Can you come by tomorrow? You go meet the FSBO at their request. You are now seen as the "good guy". You take along a MaxLS sign and place it next to their "For Sale By Owner" sign and/or you put a xOwner decal on their FSBO sign. Now, when homebuyers visit MaxLS.com or ForSalexOwner.com to lookup details on the home, they will also be introduced to you! So in the process of helping the FSBO market their home, they are in turn helping to market your services. In addition, there is a 80% chance that the FSBO will eventually hire an agent, and you will likely be their first choice. Working with FSBOs Scared of prospecting FSBOs? Now there's an easy way to turn that reluctant FSBO into a satisfied customer. According to NAR's Profile of Homebuyers and Sellers in 2003, only 14 percent of home sellers actually sold their homes without the help of a real estate professional. This represents a 30 percent decline over the last two years in the number of people successfully selling their home "by owner." There are many reasons FSBOs do not succeed without an agent. Some simply price their property too high. Almost none have the resources and sophistication to obtain a top search-engine placement. Few know about virtual tours or how to import them to a Web site. Thus, the FSBO is left with newspaper advertising and a sign. At best, these two strategies reach less than 20 percent of all potential buyers. Granted, some FSBO companies will place the seller's listing on the Multiple Listing Service through an IDX or VOW agreement, but agents are often reluctant to show these homes. FSBOs who list with online real estate companies or discounters who provide a menu of services also have challenges. Very few of the online FSBO companies place as highly as traditional real estate companies in terms of search-engine placement. This means there are fewer visitors to these Web sites. This results in lower purchase price for the seller due to less exposure. In fact, according to NAR's 2003 Homebuyers and Home Sellers Survey, the average FSBO sale was $145,000, compared to $175,000 for the average Realtor-assisted sale. This means on average, listing with a Realtor translates into 21 percent more for the seller. Agents are often reluctant to prospect FSBOs because they fear rejection, yet FSBOs are one of the best sources for listings. The challenge is few agents have a strategy to keep in contact with the FSBO long enough for the FSBO to give up on selling themselves and list with a broker. As an agent, how can you capitalize on this situation? We have developed a strategy to keep you in front of the FSBO in a way that can easily convert the FSBO into a signed listing. The approach is to offer a service where you provide FSBOs with a means to place an ad for their property online. You do not place the ad for the FSBO. Each FSBO maintains its own ad. Instead of trying to educate the FSBO why they should list with you, the strategy shifts to providing the FSBO a service to help them sell their home. Since you are giving something away, you are not telemarketing your services. Consequently, the "No Call" list does not apply, provided you make no attempt to solicit the FSBO's business. When you offer the service, you can ask the FSBO's permission for the "area representative" (you) to contact them in the future to determine if they need anything else. At this point, you have "permission marketing," i.e. you can contact them in the future. If they say "No" to this question, you can still contact them by e-mail. As an agent, your goal is to be in front of the FSBO when they decide to list their property. Using this strategy, you now have a means for contacting the FSBO on a regular basis. If you provided this service on your own Web site, the FSBO normally assumes you will be directing buyer inquiries to your full-commission listings. By using this approach, however, you can call the FSBO repeatedly, suggest they change their ad if they are not generating enough buyers, and be helpful without inserting yourself into their sale process. An important point to note: do not give the FSBO any real estate advice because you could be creating an agency relationship. If the FSBO relies on your representations and something goes wrong, you can be on the hook for damages. If FSBOs are curious as to why you are helping them, let them know you would like to earn the right to receive their referral business. Also, given that you are providing the FSBO with a service, there's nothing wrong in asking for the contact information of buyers who contacted the FSBO but were not qualified to purchase the FSBO's home. Working with FSBOs is one of the fastest ways to build your inventory. Are you up to the challenge? Questions? CALL Philip 864-380-9463 |
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