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FOR SALE BY OWNER What Every F.S.B.O. Should Know!

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Presentation on theme: "FOR SALE BY OWNER What Every F.S.B.O. Should Know!"— Presentation transcript:

1 FOR SALE BY OWNER What Every F.S.B.O. Should Know!

2 First, let’s Examine Your 3 Selling Goals! A Serious Homeowners Guide To Selling Your Own Home! Introduction When selling as a For Sale By Owner (FSBO) you are actually taking on the job of a ‘real estate agent’. This means that in order to sell your home you will need to engage in the same activities as a successful real estate agent. This guide is designed to help you understand exactly what needs to be done. It will give you the inside knowledge of what agents really do when it comes to selling a home.

3 Your 3 Selling Goals 1.Sell your home at the highest possible price the market will bear. 2.Eliminate last minute surprises that often cause a sale to fall apart 3.Sell your home in the fastest possible time frame without having to give it away. With These 3 Goals Addressed You’re Ready To Begin The Sale Process!

4 The Vast Majority of F.S.B.O.’s Eventually Hire A Real Estate Professional! Understanding The Success Odds? The Facts According to association statistics, every year 3% to 13% of homeowners nationally attempt to sell without employing the services of a real estate company. How Many F.S.B.O.’s Are Successful? Only 3% to 9% of those who try are successful when selling themselves. (Failure rate is 91% to 97%) How Long Do F.S.B.O.’s Try Selling Themselves? The average F.S.B.O. will try to sell on their own for 37 days before hiring the services of a real estate professional.

5 Implementing An Effective Marketing Plan Increases The Odds For A Successful Sale! Sale Success Is Limited Why Are The Majority of F.S.B.O.’s Unsuccessful? Question: Price Were they asking too much for their home? Answer: No Most F.S.B.O.’s are generally priced at, or near, market value. Then Why Were They Not Successful? They failed because they did not have a marketing plan designed to maximize exposure.

6 What Constitutes an Effective ‘Marketing Plan’? It is a system designed to solve the #1 problem F.S.B.O.’s have – how to locate a qualified buyer for their home. This system is called the Multiple Listing Service, (MLS), and is proven to be the most effective home marketing process on the planet. The Marketing Process Called The MLS is of Far More Importance Than Is Activity!

7 Activity Effectiveness The Truth About Public Open Houses! Less Than 5% of these Homes Sell as a Result of the Open House! Question: Then why do some agents offer open houses to their sellers? Answer: They are ‘buying agents’ who use your home to meet potential clients who may buy another home, but not yours, within the next 6 months. Holding a Home “Open” is Considered a Passive Selling Activity

8 ‘Office/Agent Open Houses’ Are Ineffective Activities When Compared To The MLS! Activity Effectiveness The Truth About Office & Agent Caravan Open Houses! Less Than 0.5% of Homes Are Sold This Way Then why do agents hold these types of open houses? There are 3 reasons. 1. To check out competitive listings. 2. To train new agents in office. 3. To maintain accurate up-to-date knowledge of the prevailing market value for homes within the community.

9 Activity Effectiveness The Truth About Traditional Advertising! Less Than 3% of Homes Are Sold This Way Then why do agents advertise? Lead Prospecting and Name Recognition Buyers almost never buy the home they call on from a newspaper ad. Instead they inform the agent of their home needs. The agent then uses the MLS to match their needs to a home currently listed for sale. Advertising can provide Agent exposure so that more people become aware of who they are and what they do for a living. Advertising is Also Considered a Passive Selling Activity

10 What F.S.B.O.’s Must Know! #1. First Time Buyers Their inexperience necessitates the services of an agent to assist them with the home buying process, financing obligations, purchase agreements, and closing procedures. #2. Corporate Relocation Buyers Most are unaware of the area, have limited time to buy, and are often contractually obligated to use a certain real estate company. #3. No Money Down Buyers Agents do not work with these hopefuls. This group seeks out F.S.B.O.’s hoping to find one who is ‘desperate’ to sell at any price. You Must Be Able to Determine The Buyers Ability To Buy!

11 What F.S.B.O.’s Must Know! #4. Move Up Buyers – (The Best) Up to 97% of these buyers are actually sellers currently listed on the MLS with an agent for the purpose of selling their existing homes. After they do sell they become a move up buyer and use the same agent to find their next home. #5. Bargain Hunter Buyers They know F.S.B.O.’s are trying to save the real estate commission, so they demand a price reduction equal to the commission. The F.S.B.O. nets the same amount of money as if he had listed with an agent. Plus they took all the risk and did all the work. Potential Negative Buyer Fact Criminals Posing As Buyers!

12 How Do Homes Really Sell? Up To 97% of Homes Sell Through The MLS Internet Channels! Why? There are four reasons. 1. MLS buyers have been socially educated to go to an agent to purchase a home. 2. MLS buyers are also socially educated to question homes selling through F.S.B.O.’s. 3. MLS buyers are not comfortable or experienced with negotiating their own home purchases. 4. MLS buyers are under ‘time pressure’ to match closing dates! The MLS Is A Time Tested & Proven System For Locating Buyers!

13 1. Your home is listed by a MLS real estate company. 2. Your listing is placed in the MLS system. 3. Agents on the MLS board receive your listing. 4. MLS agents show your home to these buyers. 5. Your home is one of many the buyer visits. 6. Agent discloses to buyer market value of your home. 7. The buyer then asks agent to place an offer. 8. Most buyers need financing to make purchase. 9. Buyer goes to lender for loan to buy your home. 10. The buyer purchases your home. 11. The sale closes at predetermined date. The Buyer Is Guided By A Professional Through The Entire Purchasing Process! A Basic Overview of the M.L.S. Cycle/Process

14 When Selling It’s Critical You Hire A ‘Listing Agent’ Specialist Professional! The Difference Between a Listing Agent and a Selling Agent! 1. A Listing Agent - Works With MLS Buyers Deals primarily with homeowners. Invests in specific training on how to effectively list and then market homes to agents within the MLS system. A listing agent’s business is a mix of 95% homeowners and 5% first time buyers. 2. A Selling Agent - Works With Buyers Deals primarily with ‘first time’ buyers. Invests in specific training on how to effectively work with buyers. A selling agent’s business is a mix of 95% buyers and 5% homeowners.

15 Will Your Listing Agent Personally Sell Your Home? Actually - The Entire MLS Community Will! Your listing agent is just one of many agents on the MLS board. The odds of your listing agent personally selling your home is extremely low. For Example : Your local MLS board may have 1000 agents. This means the odds of ‘your agent’ having the right buyer for your home is 1000 to 1. Then What is the Job of Your Listing Agent? Your listing agent’s job is to professionally market your home to targeted potential buyers and real estate agents that have ready-to-buy home buyers. A Listing Agent’s Job Is To Professionally Market Your Home to Buyers and Agents!

16 Homes Are Marketed To MLS Agents First And Then To Their Move Up Buyers Second? Your Listing Agent’s Job Is To Promote Your Home To Other MLS Agents! That’s The Real Job of a Listing Agent! A listing agent’s job is to make sure other MLS agents know your home is for sale. Why? Up To 97% Of Homes Are Sold By MLS Agents! A listing agent’s task is to target MLS agents who have move up buyers, current sellers, with needs matching your home’s features, location and investment price. This is achieved via a communication strategy specifically targeting price range MLS listings.

17 The Bottom Line If all you want to do is sell your home, you may get lucky enough to do just that. But, if what you want to do is sell your home for the very most money possible you may want to consider using my professional marketing services. Remember, I don’t get paid a dime, nothing, zero, until and unless I find a buyer that is willing to pay a price acceptable to you. Monitor the escrow, arrange all inspections, perform all negotiations, dot the “I”’s and cross the “T”’s, close escrow and you have your net proceeds in hand. Then and only then do I get paid. It almost seems unfair doesn’t it? I will get your home sold, fast, and for top dollar. Plus, I will help you find your next home and make sure you get the most home possible for the least amount of money.

18 I Have MLS Buyers Right Now Who Would Be Interested In Taking A Look At Your Home! When I Drop Over I Will Bring This List For what purpose? To discuss with you where these buyers are currently located and what must be done to ensure they know your home is for sale privately. My Promise To You! I will bring a list of these buyers to our meeting without any obligation on your part to list with me. I Look Forward To Our Appointment Your Contact info here

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