Dec 5, 2016, 07:00 AM
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Most ‘For Sale by Owner’ (FSBO) sellers hope to reap a little more equity by cutting out the agent commission.
In fact, according to the National Association of Realtors® 2013 Profile of Home Buyers and Sellers, the average sale price of an FSBO home is 22 percent less than the price of an agent-assisted sale – and most FSBOs limit their prospects because they lack at least four qualities:
- Pricing ability – They don’t have the data or experience to properly price their home.
- Market insight – They know little about local inventory, demand, or competition.
- Market connections – They lack the means to reach a pool of qualified buyers.
- Transaction skills – They don’t have the expertise to see the deal through closing.
But it’s tough to convey this to a determined FSBO, and the competition is stiff. Agents skilled at winning over FSBO business suggest a measured approach.
“FSBOs can be defensive or impatient,” noted Jessica Cuda, an agent with Better Homes & Gardens Real Estate Go Realty in Raleigh, N. C., who enjoys a 60 percent success rate in winning over FSBO listings. “They may have had a bad real estate experience in the past, or think they can’t afford to pay an agent. You need to earn their trust by being friendly and genuine, offer tangible assistance that sets you apart from the crowd, and be persistent without being annoying.”
Cuda starts her FSBO contact with a phone call asking to preview the home for her clients. She lets the owners know she understands they wish to sell on their own, but emphasizes that she gets no commission unless she sells the home at terms agreeable to them.
Under those conditions, she said, most FSBOs are willing to talk – and she is happy to listen, which helps her understand their needs. When she arrives to preview the home, she demonstrates the value she can bring to an inexperienced seller – sometimes going over a local market snapshot or a list of tips to make their open houses safer.
During her walk-through, she points out positive features of the home compared to the competition. “Almost always,” said Cuda, “they trust and respect our opinion.”
After her visit, Cuda sends a hand-written thank you note. “Mostly,” she said, “I want to them know that I appreciate their time…that I’m friendly and approachable.” Then she stays in touch, shows the home when she can and is available to answer questions.
Cuda rarely focuses on expired listings. “They’re a category of their own,” she said. But her clear-cut success rate in her first year as an agent – listing nearly two-thirds of the FSBOs she contacts – is reason enough for other agents to put her method to the test.
Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade.Published with permission from RISMedia.