I have been strolling through craigslist and search engines looking for FSBO listings. Craigslist does not seem to have really good deals...and there is alot of competition. The sites I seem to find for the FSBO listings seem to have the national do not call registry attached to them. Does "do not call" basically mean do not contact as well? Does anyone know how I could use FSBO listings to my advantage to generate leads? Thanks for any suggestions.
I've never focused on FSBOs only because so few of them are motivated. But if I were going to set out to do it, I would do this (or have an assistant do this):
* Scan Craigslist Leads
* Scan leads from other local newspaper
* Scan leads from FSBO magazines at the grocery store, etc
* Put them all in a spreadsheet or Highrise
* Search all their numbers on whitepages.com
* Search them all on the do not call list--cross off those who are, because it's still soliciting even if you're not selling something
* Call them all 3 times until you get a live person on the phone
* Pre-screen live answers and work the deal
I would probably call 200-300 numbers as a decent test and then compare:
* The time it took
* Any costs involved
* what % of sellers were motivated
* Ask if it's worth it and proceed if it is
I don't know exactly why you would want to focus on a group of people who don't want to pay a commission to save money, don't have the equity to hire an agent and in many cases don't have a clue whats going on....But, since you asked....
In order to better answer your question I would need to know how you intend on monetizing them?
Are you looking to do a purchase option contract on the homes then resell the contracts to end users
I think Alnise has left that building.....I am curious about her response though since I am targeting FSBO as well with the intention of optioning the property and selling the contract to an end user....
Hi, Alan and all have some good suggestions, but IMO, I doubt you will find it profitable concentrating on FSBOs, at least when they are new on the market.
Consider why they are FSBOs.
1. Greed
2,.The feel they can do the marketing, they don't need an agent and can find help when they need it.
3. They generally have time, they are not motivated.
4. They may not be able to afford to list and if so, they may be more motivated, but it connects back to number 1. above.
So, why would you concentrate on a seller who is tight or greedy, feels they nhave adequate knowledge or can get help as they need it (attorney, who you don't want to deal with) and who usually lacks motivation???
I talked to a FSBO this morning, they were over priced, were not motivated and had a friend who could help....I never even mentioned I was in real estate!
Now, if you look to FSBOs that are 90+ dyas on the market, motivation changes and they may see that they are not drawing in traffic. You can go back, and if you can't buy it, do an open option at what ever they agree to. Assist them with their marketing ads. Tell them to have everyone sign in when they view the hosue and why they should know who come into their home! Tell them to give you the list of names/numbers and addresses. Why, because you'll try to sell them the home with your option. Help them all you can, but don't act as an agent!!!! Many will work with you, thinking you might sell it to the same guy and the worst that can happen is that they get the option price!
Then you can cold call them, maybe they have a house to sell too. Maybe you have another house they would be interested in. Maybe you can resell the same house to them! Whatever...
FSBO is a whole different animal from normal marketing. They are on a limited budget so newspapers and signs are the 2 most popular ways to market their properties. Develop a system that will maximize this and you are on easy street.
If you REALLY want to sell FSBO please purchase the inexpensive book "How to Sell Your Home in 5 Days" by Bill Effros. Not only will the seller be happy you will to when you see the money you make as a "consultant" to help them sell the house. All forms are in the book.
Charles Hill
It might be worthwhile to focus on FSBOs that come off the market without selling. Those property owners might be more willing to talk with you about other creative ways to sell their property.