In 2005, we, the real estate community, saw interest only loans with no money down. We knew the banks were going to own a lot of property. I started systems that built relationships with banks so our clients would be in first place when short sale and REO listings would be considered.
Now, the market is hot in some areas and getting hotter in others. One of the many trends in this environment is the growing “for sale by owner” inventory. The FSBOs still don’t have a ton of equity but are sure they don’t need a REALTOR®. Each of my coaching clients is great in re-educating FSBOs on the fact that they probably can net the same with one of our customized marketing plans, but the indoctrination always works better with a relationship.
Once a week, my clients absorb the new FSBOs from every local source. A faster way to accumulate that same information is to subscribe to Landvoices’ fine product. They do a great job of finding every FSBO in your area and delivering it to your inbox with all pertinent information. Call them at 888.678.0905. Be sure to tell them you got their name from me for a special discount.
The first week, they call and explain that they show their buyers “secret property” that other agents do not show by using a buyer-brokerage agreement. They ask the FSBO seller to help fill-in their information sheet with details not provided by the FSBO’s ad or Landvoice. They also ask questions about motivation and expected closing dates. The FSBO might ask about commission, which is easily explained by the fact that the buyer-brokerage agreement calls for the buyer to pay the commission if the seller does not. The FSBO will, most likely, gleefully help you complete your spreadsheet questions.
Before you get off the phone, let the FSBO know that you will be sending some free value offers and calling to follow up on a weekly basis as you try to match their property to your buyer database. You follow this process for 20 weeks.
The results are four-fold:
- You impress your buyers by showing them “secret inventory” (I have 12 other secret property sources)
- You increase your chances of a double-ended transaction.
- The FSBO may eventually become your listing.
- There is less rejection from the FSBO.
This is a true, multiple source of income from one exertion of energy system. It’s what we specialize in at Sanford Systems.
With this system, you have more knowledge about the property and the seller; additionally, you are possibly showing the property. Don’t forget that you are also sending the FSBO value and following up every week so that you do not wear out your welcome. You will even have your lender call with a third-party endorsement and provide more offers of value.
You’ll need the spreadsheet and the 20 weeks of letters/emails for you to customize for your business. We have (nearly) perfected them over the years of using them, but I am sure there are some services that you don’t want to or can’t offer so feel free to customize. Email us with the contact person (and his/her contact information) who is most likely to hire a speaker for a big real estate event in your area. We will send you the spreadsheet and the emails — all for free.
I can’t wait to see you at one of my seminars in your town!
Walter Sanford has been designing and implementing real estate systems for 30 years. One of the most successful REALTORS® and now wealthy from his systems, Sanford teaches his systems and strategies through his products, seminars, and personal coaching producing the best results in the industry. Do what works, do what is proven. Hire Walter Sanford. Call our office at 800.792.5837, email email@example.com, or chat with us online at www.waltersanford.com.