FSBO Is Untapped Market For Realtors

1. Cooperating Agent Approach - is perhaps the simplest, fastest way to contact a large number of private sellers in a short period of time. By using this simple system, you can take the first step towards building a relationship with a private seller that may lead to a listing. A phone call with the following script best exemplifies this approach:
Hello, my name is Agent Name. I'm with Company Name. I noticed your ad/sign. First I want to tell you that I'm not calling to ask for a listing today, and I respect your decision to sell on your own. But I do have a quick question. If I had a buyer that would fit your home would there be a possibility that I could show the property?
Great, may I stop by and preview the home Monday or would Tuesday be more convenient?
With this approach, you will immediately take down the seller's defense with your early statement of not having any intention in asking for a listing, and respecting their decision to sell on their own. This generally will allow the seller to at least hear you out. If the seller has agreed to allow you to show their property to a potential buyer, then you can now set up an appointment to view their home. With that, you are at least on first base. Over the course of the next few weeks, you must make the most of your opportunity in building a strong rapport with the seller. You can provide them with sellers with financing sheets for their home, providing sellers with financing sheets for their home, etc. Be honest and transparent with them to show the benefits of professional service.

2. Relocation Approach - this approach is reserved for that slightly tougher private seller, you know, the ones with FSBO signs stating "No Agents!" or "Principles Only!" The relocation approach focuses on offering the seller your relocation service to help them find their next home. The following script gives you an idea on how this approach operates:
Hello, my name is Agent Name. I'm with Company Name. I noticed your ad/sign. First I want to tell you that I'm not calling to ask for a listing, and I respect your decision to sell on your own. But I do have a quick question: When you sell your home will you be staying local or moving out of the area?
I have access to hundreds of homes through our MLS system. Would you like a list of some homes that may fit your needs?
My company has a national referral and relocation program to help folks like you relocate to other areas of the country. Would you like some free relocation information on where you're moving?
Great, I can drop that information off Wednesday or would Thursday be more convenient? Morning or afternoon?"
This effectiveness in this approach lies in the fact that you are calling with no intention of calling for a listing, rather you are calling to offer help for relocation purposes. Using this approach may help you to build a relationship with the private seller, and you may be the only person who has a relationship with them when they do decide to use a professional. This approach gives you a way to lead with the sellers need and offer them something of value before you ask them for anything in return.

3. The Helping Hand Approach - is reserved for the toughest private seller. The strategy in this approach is to assist the person sell his home. That's right, you heard correctly, even though it may go against the actual objective of getting his listing. By helping the seller, you will build a strong relationship with them, which may be beneficial if they prove unsuccessful in selling on their own. At the very least, you have established a connection who may serve as a prospective client in the future. Here is a sample script for this approach:
Hello, my name is Agent Name. I'm with Company Name. I noticed your ad/sign. First I want to tell you that I'm not calling to ask for a listing, and I respect your decision to sell on your own. But I do have a quick question: My company has put together a free For-sale-by-owner kit for people selling on their own. It's a free service that we offer to every private seller in the community. It includes...
Have you received your free kit yet? I'll be in your neighborhood later this afternoon, or tomorrow morning when would be a good time to drop off your free kit?
For this approach, you will require an actual FSBO kit to give the seller. Most offices should feature these kits on their website. Even if the owner successfully sells his home, you will at least feel satisfied for them and for the work you did, which was not that much really. With that work, it could really pay of big time if the seller eventually enlists your services, plus you've made a connection that could be advantageous in the future.

For nearly two years, Adriel and Lance Bush tried unsuccessfully to sell their 1925 home in West Palm Beach, Fla. First the couple went the traditional route: They hired a realtor (three of them, in fact) who gave them standard advice, like getting rid of all the clutter caused by their twin toddler boys. They also renovated their master bath and added granite counters to the kitchen. Still no takers, which wasn't surprising: Home sales in the West Palm Beach area have fallen by double digits.

Then Lance, 43, who had already accepted a new job in Tucson, relocated his family out West. That's when the Bushes got desperate. Between the mortgage, property taxes and insurance (including hurricane coverage) on their Florida home - along with their Arizona housing expenses - the couple was shelling out more than $7,000 a month.

Though they had already slashed the price on their 3,500-square-foot Mediterranean-style home several times - from $1.3 million to $795,000, which is about what they originally paid - they were willing to go even lower.

They also got creative. For instance, they decided to consider a lease-to-own deal, which makes it easier for cash-strapped buyers to take the plunge.

And they even went so far as to hire a feng shui expert, who for a fee of $250, added minor touches around the front entrance of their home to give it more "positive" energy. "I figured it wouldn't hurt anything, so why not try it?" says Adriel, 38, a professional organizer. A few weeks later, they found a buyer.

Of course, the Bushes aren't saying it was feng shui that triggered the eventual sale. But in today's market, where there are more homes for sale than corn in Kansas, one thing's becoming increasingly clear: You've got to be open to anything.

At last count, there were 4 million pre-owned houses for sale. That's up 14% from the start of last year. In cities and counties hardest hit by the real estate downturn, the numbers are even more dizzying. In Orlando, for example, there are now 26,000 homes up for sale. In 2004, "we were lucky if we had 3,000," says Lydia Pisano, former president of the city's local board of realtors.

In such a hypercompetitive market, you have to go way beyond what everyone else is doing - especially if you want to move your home quickly. Old standbys like slapping a fresh coat of paint on your clapboards or throwing in a complimentary plasma TV just won't cut it.

Instead, you have to rely on guerilla marketing tactics to get your home noticed. Maybe you start pitching your home on popular message boards. Certainly you'll need to seek out buyers rather than wait for them to find you. And you can no longer limit yourself to conventional sales agreements.

Before your open house, do some last-minute prep. For those in need of help, Homestaging.fizber.com has contact information for professionals well versed in the art of making a home look appealing. If you're not eager to shell out a thousand or more dollars to bring in a pro, take advantage of a few specific tips offered at home staging hubs.

First, clean up clutter and tone down loud wall-paint colors. Then put away personal photos and other chotchkes (so the buyer can more easily imagine him or herself living there), and set up some flowers so the place smells nice and feels summery. Even if you're in a rush to cash in because you fear a looming bubble burst, staging experts argue that taking a few days to set up your home for display can mean a 5% to 10% difference in price, and can cut down the number of weeks a home sits on the market.

When your sale goes through, save your contacts and research. Most sellers will one day sell again.

The shifts in markets throughout the country make many cities a great destination for first-time home buyers in 2008. Here are four example cities; all data is provided by Cyberhomes.com.

Cincinnati, OH

Market Information
Median home value: $194,728
Median household income: $44,704
Unemployment rate: 5.2 percent
Recent job growth: 1.12 percent

Search Cincinnati Real Estate

Gainesville, FL

Market Information:
Median home value: $145,134
Median household income: $19,515
Unemployment rate: 2.9 percent
Recent job growth: 4.4 percent

Search Gainesville Real Estate

Indianapolis, IN

Market Information
Median home value: $182,406
Median household income: $62,496
Unemployment rate: 5.0 percent
Recent job growth: 0.39 percent

Search Indianapolis Real Estate

1. Purchasing a home too fast.
Perhaps it's the excitement of purchasing the first time. Or maybe it's a fear that the "perfect" home will be purchased by another borrower. Whatever the reason, many first time home buyers make the mistake of rushing through the home purchasing process. They tend to spend too little time searching for the right home. Often first time homebuyers end up dissatisfied with the home they've purchased.

2. Buying too much home.
Another mistake made by first time home buyers is purchasing a home that's right at, or even a little beyond, their limits. Many times this leaves the new homeowner with little or no disposable income. What good is a large home if you are unable to furnish it? None at all. Purchasing a smaller home and leaving yourself some wiggle room is much better than eating up your monthly income with mortgage payment.

3. Holding out for the dream home.
First time home buyers might pass up several houses they like because they believe that there is a better house out there for them - one that is complete with everything they want and need.

In the meantime, houses that have most of the items they are looking for are being taken off the market by other buyers.

If a significant period of time passes, market prices could go up and the first time home buyer ends up paying more for a home than expected. Even worse, the buyer ends up so worn out from house shopping that he, or she, ends up settling.

4. Not getting mortgage pre-approval.
A pre-approval will do wonders for the first time home buyer's shopping experience. Being pre-approved for a mortgage gives you an idea of what you will be able to pay for a home.

Some first time home buyers, not realizing the value, forgo pre-approval to get a head start on home shopping. What's the worst that could happen? You could find a home you absolutely love and fail to obtain financing for it.

5. Not comparing mortgages.
Shopping around for a mortgage is just as important as shopping around for the home. Many first time home buyers do not realize that mortgages from different lenders have different costs and different terms.

There are so many cost factors of a mortgage that can vary from one lender to the next. It only makes sense to shop around for the best deal.

Home sellers

6.Putting the home on the market before it's ready.
Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything - so get the work done before marketing the property.

7.Over improving the home for the neighborhood.
This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it's an anomaly, instead of a nice addition to the community.

8.Getting emotionally involved in the sale of the home.
This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn't matter what you "want," only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the nuances of your home of seven years.

9.Trying to cover up problems, or not disclosing them.
Most states have a property disclosure/disclaimer form - use it wisely. Just because you disclaim doesn't mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that's discovered 30 days after settlement.

10.Not getting your ducks lined up before trying to sell.
This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later - it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.

Source: Fizber.com

Are you ready to move to Florida? Follow some practical tips and advice before you move. Fizber prepared some tips for anyone planning to buy a home in Florida. Buying a Home in Florida is designed to guide you through the jungle (and swamps) and make buying a home a pleasant and enjoyable experience.

Click here to read Useful Guidelines in Buying a House in Florida Real Estate