While it is the homeowners’ prerogative to sell their own homes, this undertaking is complex and it can be daunting for the uninitiated. Yet, some homeowners do sell their own homes successfully. Others will eventually turn to a real estate professional. This is where you, the REALTOR®, comes in.
Following are some tips on how to prospect FSBOs (For Sale By Owner).
First, check with your brokerage to ensure potential FSBO clients are not registered on the National Do Not Call List. You cannot telephone them if they are. You should also check to ensure you are not contravening Canada’s new anti-spam legislation (CASL), which became law in July 2014. Section6(1) of the Act prohibits the sending of commercial electronic messages (CEMs) unless the person to whom the message is sent has consented (either express consent or implied consent) to receiving it. Again, check with your brokerage first. For more information about CASL, go to http://bit.ly/1pL8kAj.
Second, understand why homeowners become FSBOs; usually it’s because they do not want to pay commission. Many FSBOs may be also believe you will not act in their best interests, so they will be negative and difficult, and/or will want to micromanage the process. Therefore, your first task will be to educate them about the value of using your services. This could be time-consuming.
What should you tell them to convince them about the value of using your services? Tell them:
• You have the knowledge and skills to negotiate successfully on their behalf
• You will handle the paperwork and ensure it is completed properly
• You have access to the Multiple Listing Service®, so you will be able to advise them on pricing their property correctly
• Your past sales successes (number of houses you have sold, how quickly, and the price)
Third, offer FSBOs the following:
• a realistic listing price based on the neighbourhood
• current and accurate information about changing market conditions
• staging advice
• appropriate marketing advice
• your negotiating skills to elicit the best price from potential buyers
For More Information
For more information on FSBOs, please consult our A Mentoring Kit for New Salespeople: Training For Success at http://www.orea.com/~/media/Files/College/MentoringKit_flyer.pdf.