Author Archive

Home Owners are Still Leary About the Market

February 17, 2011

I find and track every “For Sale By Owner” (FSBO) listing in the U.S. and Canada. In 2008 we saw that the number of FSBO properties on the market had dropped by 50% from the previous year. We haven’t seen the numbers increase in the past three years. It appears that home owners are content to be patient and wait until the real estate market rebounds.

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U.S. Real Estate Market

November 13, 2008

The U.S. real estate market is going through some turbulent times.  Most experts agree that the market will continue to worsen before it gets better. Alas, in the midst of all of this somebody has taken the time to put together a hilarious parody on the market.  I hope you will all find this as funny as I did. http://www.youtube.com/watch?v=bNmcf4Y3lGM

Where have all of the FSBO’s gone?

September 25, 2008

I have been tracking For Sale By Owner properties one way or another for the past 8 years.  Recently, I’ve noticed that FSBO listings have substantially dropped off.  For example, in May of 2007 my company, FSBO Leader (www.fsboleader.com), found over 50,000 new FSBO listings.  Compare that total with August of 2008 when we only found about 13,000 new FSBO listings. 

Where have all of the FSBO’s gone?  In this down market, it’s obvious where they all went.  In this market even FSBO property owners have decided not to sell.  I see this as good news for the industry as a whole.  Those FSBO’s who are still trying to sell in this market are the ones that must sell so buyers should be able to find great deals on those properties.  In addition, the FSBO’s who haven’t sold will be more inclined to list after giving it a try on their own for a few weeks, which is good news for real estate agents.

Yes, there are fewer FSBO’s on the market now, but we have found that they are serious about selling.

Loan Officers Profit by Working with FSBOs

August 14, 2008

I have worked with many loan officers over the years benefit greatly from working directly with FSBO’s.  I have jotted down a few ideas.   

 

First, loan officers offer to prequalify buyers for FSBO home owners.  Loan officers should give each FSBO a call and introduce himself.  Explain that they help home owners by pre-qualifying their buyers.  Loan officers explain to the home owner all of the time and frustration they will save by having their buyers pre-qualified.  The great part about this method is that every buyer who the loan officer pre-qualifies for that home will be a lead for the loan officer whether they buy that home or some other home.   

 

Second, loan officers establish reciprocally beneficial relationships with real estate agents by working with FSBO home owners.  After the loan officer has worked with the home owner for a month or two and the home owner is frustrated because they still have not sold their home, the loan officer can refer that home owner to their preferred agent. 

 

Third, offer the FSBO home owner marketing materials for free, like a yard sign and flyers.  Of course, all of the marketing materials will be co-branded with the home owner’s information and the loan officer’s information. 

 

Fourth, it’s likely that the home owner is selling their home because they are moving into a different home.  Loan officers establish good relationships with the home owner and help them with their mortgage for their new home and refer them to an agent to help them with their search.        

 

Fifth, once you have established a good relationship with the home owner, make her a part of your sphere of influence.  Send her periodic emails, letters, and postcards to be in the forefront of the home owner’s mind when they want to refinance or move.   

The FSBO World

August 4, 2008

I have been tracking For Sale By Owner (FSBO) properties for nearly 10 years.  I have become quite the expert at finding FSBO’s in publications throughout North America.  I have helped thousands of real estate agents, brokers and real estate investors work with FSBO properties to make thousands of dollars. 

I find two stats quite interesting… the first, according to NAR, 84% of FSBO’s will eventually list their property with an agent.  The second stat is that for those few FSBO’s who do sell on their own, they sell for 12-24% below the value of the equivelant listed property, so investors can find great bargains working with FSBO’s.