One of the keys to succeeding as a real estate agent is exploring every avenue when looking for profitable deals. In fact, being able to consistently identify high-potential investment properties is the single most important skill that agents need. Needless to say, achieving this is predicated on mastering the property search process and always thinking outside of the box. One particularly effective approach is to get FSBO listings. But what exactly are these listings? How to get FSBO listings as a real estate agent? And what are some of the best ways to convert FSBO leads? In this article, we will outline a simple guide that illustrates how to find FSBO leads and walks you through the process of converting them.
Related: How to Get Clients in Real Estate: 8 Pro Tips
How to Find FSBO Listings
FSBO stands for «for sale by owner». These are simply property sales that are handled by the owners themselves rather than a realtor. There are several reasons why a property seller might consider going the FSBO route. For example, when a seller and a buyer know each other, a realtor might be deemed unnecessary. In other cases, the owner is simply not in a hurry to sell and is, therefore, more likely to explore other options that don’t involve real estate agents. Sometimes, homeowners decide to go the FSBO route to avoid real estate agent fees. In any event, here is how you can find FSBO real estate listings.
Related: How to Get Real Estate Listings: 10 Best Tips
1- Join Facebook groups
Despite being the largest social media platform in the world, Facebook remains a somewhat untapped source of profitable deals. In fact, there are several pages and groups that provide easy access to a goldmine of real estate leads. When looking for FSBO listings, consider joining a wide range of groups that pertain to various aspects of property ownership. Examples of this include groups that focus on garage sales and DIY improvement. Becoming active in these communities and establishing a good rapport with their members can be the best way to get FSBO listings.
Related: 22 Real Estate Social Media Marketing Ideas for Agents
2- Check the local county delinquent list
Another effective approach to FSBO prospecting is checking the local county delinquent taxpayer list. As you would have probably guessed, this real estate lead generation strategy focuses on identifying distressed owners who are more inclined to offload their properties. There are several ways to access this list. Since tax delinquency is a matter of public record, you can head to the county’s administrative offices and manually sift through the relevant documents. However, a more practical alternative is to simply work with a data provider.
3- Drive around various neighborhoods
This is an old and tried method that is still as effective as ever. Driving around and looking for any signs that indicate that the house might be on the market increases your chances of finding FSBO listings in a timely manner. So what exactly should you look for when searching for potential FSBO property listings in a particular real estate market? The answer is fairly simple. Homes that are for sale by owner will often be vacant or in a slightly distressed condition. Writing down the addresses of the properties that meet these criteria and contacting their owners might lead you directly to an FSBO deal.
Another thing to look for when driving around is yard signs. In fact, a significant percentage of property sellers opt to advertise the fact that they are selling the property in their front yard. Needless to say, this makes real estate lead generation easier for you and increases your chances of securing a quick deal.
Getting FSBO Listings to Convert
Finding FSBO listings is only half the battle. In fact, you still need to convert these free FSBO leads to real estate clients. In order to achieve this, you need to implement a real estate marketing strategy that is tailored to the specificities of these listings. Below is a brief look at the steps you should take when marketing to FSBO leads.
1- Research the FSBO listing
The first step of the process is researching the listing itself. This is extremely important since it provides you with valuable insight about the property as well as the reasons that prompted the owner to sell. Make sure to check your MLS and go over previous selling prices to learn more about the property’s history.
2- Get access to homeowner data
If you plan on driving around to spot potential FSBOs, you’re going to need contact info for homeowners. And really, whichever route you choose for finding FSBO listings, you are likely going to need a reliable way to contact homeowners. While you may get a phone number from a listing, your FSBO marketing campaign may require emails and more to start. This would mean that you need homeowner lists with phone numbers, emails, and addresses. This kind of homeowner data would also help you ensure you have a large supply of homeowner information to use when looking for and marketing to FSBOs. Get access to Mashvisor’s homeowner data by signing up for a 7-day free trial.
3- Convey what you bring to the table
In order to win FSBO listings, you must know how to convey your value to the seller. After all, you are essentially pitching your services to someone who has already initiated a sale. Here are some of the main points that you should hit when approaching a lead:
- Explain what the MLS is and how you can leverage it to secure the best possible deal.
- Share your market experience with the seller and highlight your ability to provide an objective price estimate.
- Expound on all the hassles that come with selling a house and mention how you can handle the brunt of the work for them.
4- Be prepared to offer some concessions
Being open to negotiation is a key component of real estate lead conversion. In the case of FSBO listings, you should be willing to offer the seller a wide range of flexible terms. Examples of this include a lower commission and the option of limited-service listing. Making such concessions will invariably increase your goodwill in the eyes of the seller.
5- Follow up on the initial contact
A common mistake you should avoid is failing to follow up after contact. It is important to keep in mind that deals are seldom closed in a single interaction. Following up is what helps build trust between the two parties and convince the seller of your added value.
The Bottom Line
Finding and closing FSBO leads for realtors is simple once you have a clear idea of what to look for. As long as you’re thorough in your search and diligent in your negotiation with sellers, you should have no trouble converting FSBO listings. In the meantime, head over to our blog and check out some more valuable realtor tips.
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