In real estate, there is a special market called for-sale-by-owner or FSBO listings. These consist of owners who are trying to sell their own homes. Usually these owners think that they can save money by selling their own homes and not spending money on a real estate agent. However, as an agent there are some things you can do to interest these owners in your services.
One key factor to obtaining FSBO listings to sell is timing. Allow owners time to try to sell the place themselves, while making sure they know that your services are valuable and available. Contact prospective clients by finding real estate ads or listings in newspapers, online, or in magazines. Some FSBO owners already have an agent in mind in case their attempts fail, so you need to be prepared to compete with other agents for their business. Work to build a relationship with the client and do not pressure them to choose you to represent them. Just make sure they know you are there to help.
FSBO listings are a reasonably safe bet to try to get the business of because there are agents who think it is not worth the time to contact these homeowners. However, owners are making themselves known and easy to find, and they obviously have the motivation to sell. It is foolish not to try to market to these clients. You already know that these individuals are motivated sellers who are just waiting for their home to sell or to realize they need help.
Many owners underestimate the work involved in selling their own home, and after a few weeks will turn to interested agents for aid. According to national statistics, less than 30% of homeowners who try to sell by themselves succeed, which leaves the other 70% or more who end up needing the help of an agent.
Owners who do manage to sell their homes themselves often achieve lower net gains than those who use agents. This fact, combined with the probability of failure, can help you as an agent to gain the business of these owners, who are only searching for the best option to sell their homes.
Within a few weeks to a couple of months, most owners who set out to sell their own home begin to search for an agent. They decide that the effort involved in selling on their own is not worth the money they save through not hiring an agent. They get overwhelmed with the job and need someone to help them. This is where responsible agents can come in and gain their business.