Considering that many FSBO sellers eventually list their property with a Realtor, lets take a quick look at the reasons they picked the FSBO route in the first place and why they're often converted to a Real Estate brokered listing in the long run.
Top reasons home owner's choose the FSBO path
- Selling a house seems easy
- Keep a larger share of the proceeds
- Not willing to "give" money towards real estate commissions
- Belief that agents don't add value
- Friend tells you how easy it is to sell on your own
- They have a unique property/unique location, which the seller believes will bring in the buyer
Top 6 tools the FSBO seller will use to expose their property
- Local advertising: Beach Reporter, Daily Breeze, LA Times
- Online advertising: Craigslist
- Open Houses
- 2.5% commission offered to Buyer's Agents
- FSBO signs around the neighborhood
- Word of mouth
The 5 top things that will drive you crazy as a FSBO seller
- Unqualified buyers trying to work a "deal" with you
- Onslaught of real estate agents, lenders, pest control companies, etc., trying to get your business
- Open houses bring your neighbors and "professional open house trowelers," but no buyers
- Advertising brings 100's of calls from real estate agents
- Qualified buyers approach you with offers well below market value, they expect a great price because they know you're not paying real estate commissions
The 5 top reasons sellers convert their FSBO property to a traditional listing
- No offers while a FSBO
- Had an offer that fell apart (25% of all deals fall apart; FSBO deals are 50% more likely to fall apart.)
- Tired of being focused on selling real estate and not on other aspects of life (job, relationships, etc.)
- To emotionally charged and attached to property to smartly negotiate with buyers
- want the property sold, this is the bottom line!
The 5 top things you'll hear from agents who want you to list with them
- I have a buyer, can I come over to preview the property (means: I don't have a buyer, but I want to get in front of you and pitch my services)
- I'll list your house for 3% (means: the agent is desperate or, they'll come back to you after it's listed with strategy of raising the buyer's agent commission to 2.5%, which is what it should have been to start with.)
- I'm a top producing agent (means: ask the agent to define. Many of the agents who are calling you have no deals under their belt.)
- I'll do whatever it takes to get your listing (means: see item 2)
- Can I/we come over and meet with you for 5 minutes to see your home (means: I don't have a buyer, but would still like to meet you, see your home, discuss my/our services and determine if you're cooperating with brokers.
The 5 top questions you should ask perspective agents
- Do you have any listing? where are they
- How many deals do you complete per year?
- Have you ever worked with a FSBO seller? Where you able to sell their homes?
- How will you market my property (see next section)
- Why should I hire you to sell my home?
The top tools a Realtor will us to sell your home
- Property listing on the MLS (South Bay and Los Angeles)
- Direct marketing (phone calls, emails, post cards, mail campaigns, door knocking, etc..)
- Branded "For Sale" sign brings buyers.
- Open Houses, brokerage caravan, broker's opens, individual showings
- Staging and hope preparation expertise
- Marketing to Brokers, past clients, agent's farm and their sphere of influence
- Internet marketing (Broker's website, Realtor.com, Agents website, Craigslist, Google ads, Podcasts, Videocast, Blogs, etc.)
- Professionally created property flyer, color, offset print
- Experience equals a home sold!
