When I see a FSBO sign in someone’s yard, I always feel a bit sorry for them. Not in a condescending way, simply because I know they are leaving money on the table. And because I know they are getting themselves in over their heads.
Homeowners don’t seem to understand everything it takes to close a deal. I think that represents a huge marketing opportunity as you reach out to FSBOs this summer. Letting a seller know who has to be involved in a home transaction and what it takes to make things go smoothly can really open their eyes.
First Part of the Deal: Time
Homeowners don’t realize how much time it really takes to market a home correctly. Simply placing it on the MLS is not enough to get a great offer. You have to take professional pictures, create marketing materials, and spread the word.
The value you bring as a Realtor® isn’t just your time and money. It’s also your network. You know other real estate agents who represent buyers. You know who you can contact to get great Just Listed and Just Sold postcards. You have connections on social media and through your website that can help you sell a home.
A homeowner doesn’t have these specialized connections. They also don’t have the time, money, and expertise it takes to market their own home effectively.
Second Part of the Deal: Negotiating
Do you know how to drive a hard bargain? Do you know exactly how to price a home to maximize the value to the homeowner? If you’re a Realtor®, your answer should be a resounding YES! But most homeowners cannot say the same.
Negotiating starts with setting the right price, which takes market knowledge and business skill. Then, you weed out the looky-loos and negotiate with serious buyers. Sometimes you need nerves of steel to stand your ground against an aggressive buyer’s agent.
Let’s be honest. People are afraid of negotiating over a car. Dealerships market themselves as “no haggle” to attract customers. What makes homeowners think they can handle negotiations on a house, which is worth 10 times as much, by themselves?
Of course, you can’t say things that way in your marketing outreach to a FSBO, but you can point out that negotiating is hard on small things. It’s even more difficult when hundreds of thousands of dollars are at stake. A buyer’s agent won’t respect a FSBO and may take advantage of them. Having a Realtor® on the seller’s side offers protection.
Third Part of the Deal: People & Paperwork
Remember when I mentioned how much your network is worth? Your sales network is only half the story. The people you know that help you close the deal are equally valuable. As I mentioned in a previous post about the five people you should know, a great Realtor® is well-connected.
The connections you have with mortgage brokers, home inspectors, insurance agents, and escrow officers are extremely valuable to a seller. They almost certainly don’t know how to connect with high-quality professionals and may be in for a shock when an inexperienced inspector or escrow officer scuttles a deal.
Then, of course, there’s paperwork. The mountain of paperwork and disclosures required to sell a home would intimidate anyone, and it all has to be done right to protect the buyer and the seller. Without proper documents, a seller may be hit with extra fees or find themselves on the hook for post-sale repairs. Having a professional prepare and execute the closing documents is a huge relief for a seller.
You’re Worth More Than You Know
The next time you’re reaching out to a FSBO, look over all the value you bring to the table. Consider how much training, experience, and knowledge you bring to a transaction. You have mastered the art of the deal.
That poor FSBO doesn’t know what he or she is missing. But with the right marketing focused on the many services you provide, including time, negotiation, your network, and making the transaction go smoothly. How can a seller say no to that?
If you’re ready to reach out to FSBOs in your area, let us help. We have a variety of FSBO marketing postcards that can help you connect. Check them out today!