In a market with scarce listings, proactive prospecting becomes your secret weapon. Targeting homeowners selling FSBO presents an excellent opportunity to be of service and position yourself as a real estate expert.
Homeowners often choose to sell FSBO to save on agent commissions. However, selling their homes without representation often costs them more than they realize.
Look at Similar Sales
The real estate industry is highly competitive. But by calling expired listings and FSBOs, circle prospecting, sending targeted ads, and staying connected with your sphere of influence, you can improve your chances of securing listings and growing your business.
You must likely compare properties during your market analysis to identify pricing trends and buyer preferences. These comparables, or comps, are usually listed on the Multiple Listing Service (MLS) and can be found by searching for property details in your area. When choosing comparables, consider location, property type, and time frame. Generally, comparables in the same neighborhood and with a similar time frame will be most relevant.
While most homeowners hire a real estate agent to sell their home, some choose to go alone as an alternative. If you find an FSBO, approach them with professionalism and respect. Explain that you can help them avoid costly mistakes and secure a better price for their home. You can also offer a free marketing kit and a sample contract to demonstrate your value.
Talk to Your Lender
As a buyer, you must talk to your lender before looking at FSBO properties. Depending on how you plan to finance your home purchase, your lender may have requirements that must be met during the closing process. Having a lender in your corner will make the entire process much smoother and help you avoid any potential problems that may arise.
FSBO sellers typically want to save money by not paying real estate agent commissions. Still, they also take on the responsibility of marketing their property, holding showings, answering questions from prospective buyers, and negotiating a final sales price. These operations might be time-consuming and demand a high level of knowledge, so the seller may save less money than they believe.
It’s also hard for an FSBO seller to price their home accurately. Unlike an experienced real estate agent, the homeowner may need help to recognize unique features of their home that could drive up or down its value. This is often why a lender will recommend including an appraisal contingency in your offer.
Check Out the MLS
When a home buyer decides to go the FSBO route, learn how to find FSBO homes in the local market. This can lead to several issues. For example, a seller may accidentally price their property too low, scaring away interested homebuyers. Alternatively, a seller might price their property too high, making it unaffordable for potential buyers.
An FSBO seller may need to learn more about negotiating a bargain or managing the paperwork required in a real estate transaction. As a result, they might miss important details or mishandle legal documents.
A buyer’s agent can help ensure all the necessary steps are taken when purchasing an FSBO. They can help determine a fair purchase price, negotiate with the seller on terms and conditions, and handle the necessary paperwork. In addition, a buyer’s agent can screen potential homebuyers to ensure they are serious about buying the property and can afford the mortgage loan. This helps both the buyer and the seller avoid unneeded hassles.
Look at the Listing Agent’s Website
Whether they’re working with a realtor or not, sellers of FSBO properties must still go through the same steps and processes as conventional home sales. This means they’ll need to take photos, market their homes, schedule showings and open houses, and deal with the paperwork that comes with any real estate transaction. Consequently, FSBO sellers often need to be more knowledgeable about the process than professionals and can make mistakes that can cost buyers big money in the long run. For example, a homeowner with professional real estate knowledge may list their property for more than it’s worth or disclose important information like liens or construction materials that could require costly repairs.
To avoid these missteps, investors can screen FSBO listings by requesting a pre-approval letter from a mortgage lender. This will guarantee that the homebuyer is serious and prepared to proceed with the purchase. They can also request a copy of the seller’s disclosures to learn more about the property and neighborhood, including local crime rates and school districts.
Look at the Buyer’s Agent’s Website
Selling a home without the help of an agent may sound like a smart move for some homeowners who can save on listing fees, but it’s typically a lot of work. There’s a lot to keep track of, from writing contracts and hiring title companies to scheduling inspections, appraisals, and closing dates.
Additionally, while FSBO sellers save on commission costs, they often need more local market expertise and marketing resources than real estate agents offer. MLS listings, property sale portals, and social media are just some of the tools that real estate professionals use to give homes maximum exposure.
If a homeowner needs more time to be ready to do the legwork of selling a home independently, a top-performing agent can help. Agents know the market inside and out, and their experience can make or break a successful sale.