On this episode of the Real Estate Marketing Show we discuss For Sale By Owners and focus on how to get in the door, learn all the scripts and why a For Sale By Owners need an agent. In fact, why are there For Sale By Owners?
When I was new in the business, I had to do the basics, because I didn’t have a very big sphere. And those in my sphere didn’t trust me at all. I was 19 years old and they would say “hey, I saw you in a party last week, there is no way I m going to let you sell me house!”.
So, back in the day my broker recommended me to do the 5 basics, as we call them in real estate: door knocking, pen houses, for sale by owners, expired listings. Since I didn’t have the 5th one, I had to learn For Sale By Owners. Sale by owners is easy! Why? Because I practiced them over and over!
The hardest part is that every for sale by owner considers going to the school, called ‘The For Sale By Owners’ school, and it’s an anti-real estate person who teaches them! You will need to ask every single question and ask every script and dialogue opposing them. We are going to teach you all the objections so you can really make your real estate agent scared!
If you learn for sale by owner you can do anything!
We all think for sale by owners agents hate us. You know what? It’s true! Because we have a bunch of real estate agents running around talking to them the wrong way. The fact is, they really do need us and it doesn’t take long – statistically, less than 30 days of an ‘education period’; over 90% of first sale by owners list with an agent. This is where you hope to get in front of them so you can actually build a relationship with them. At the end of the day, they are the most loyal clients you will ever find! And once they realize your value, they will pay you full commission!
I work with a lot of team agents who ask us if they should send their assistants to ‘The For Sale By Owners’ school. Unless you know how to train, this is the worst thing you can possibly do. It’s not only going to waste your time, it’s also going to waste the team agents time. In the beginning you, as the agent, need to get for sale by owners.
So where can they be found? The best source is forsalebyowner.com. We also mentioned reozom.com the other day. Zillow and their ‘make-me-move’ section with their ‘for sale by owners’ dropdown tab that you can directly click on quickly access. The bad thing about that is all the agents know about it and that’s where you’re going to find the most competition. Some of the smaller websites, such as craigslist, your local newspaper, those are the places where you can find less competition. Again, nothing beats finding a freaking sign when you’re doing your job, looking around for property!
So here are some things you need to know:
- If you are going commit to a for sale by owners, commit to it 110%
- Stay committed and practice daily
- Never get discouraged
- Keep your pipeline full; There are so many for sale by owners that if you just continuously keep your database full of them so that you have 3-5 a week you can work with and you can usually get 2 – 3 of that 5, which is a really good number to add to your market!
- The referrals alone are worth it
- A lot of people say that they don’t have time to work with for sale by owners. The reality is that they will go out to knock on 40 doors and it will take 3 hours. If you have 3 for sale by owners, they make much better leads! It’s less work, less frustration! I’d say, give it a shot!
- So what makes someone not want to use an agent? Most of the time, it has to do with personality styles; For example a huge fight happens during escrow and the owners believe that the agent did not represent their interest as much as the buyer’s. As agents we need to be able to adapt to these personality styles and help them understand that we know what we’re talking about.
For Sale by Owner Plan:
Let’s first talk about how we are going to educate them. There are 5 different types of buyers that we present to the sellers:
- Someone who has already sold a home or has had a job transfer
- Cautious and qualified
- Non-qualified buyers needing special financing
- Deal shopper and investors (these buyers aren’t typically qualified and are looking for a a deal between 10%-30% less than market value)
- Looki-Loo’s (these buyers are just getting decorating ideas. They can’t afford it, but it’s cheaper than the movies!)
So at the end of this, ‘Mr. and Mrs. Smith’, the serious buyers, are going to work with real estate agents; the 1 and 2.
Remember back when you bought? Did you use a professional? Most people used a realtor. So look: Is your home really on the market? How much time and money do you spend marketing your house? Are you home all day and every weekend? Do you and your spouse work 40 hours a week? … If the answer is ‘yes’ then your house is not really on the market and you just gave a complete stranger your schedule!
Buyers have no patience. By the time you return their call, they are already in our car seeing homes with someone who has more time! When we market your home, you have over 1500-1800 agents to sell your home, all day, everyday. Even in the middle of the night, agents have access to your home via the MLDS website.
If a buyer is going to go to their house, what is the first thing they are going to deduct automatically? They will deduct commission from direct sellers! They want a deal! So when you go there, it’s perfectly fine to explain this to them.
Let’s just face it, it’s not safe! Being in the business, we hear all of the sad stories… It’s not safe to let strangers into your home! So, if it was to sell, what we ask them after is:
- Are you a professional negotiator? Have you been trained? As a 3rd party negotiator, Team Bjorkman has no emotional ties to your home
- Who would you use for Title, Escrow, Inspectors, Appraisers, Attorneys, and Lenders? We work with these affiliates everyday and know which companies to trust and which offer the most protection
- Do you know how to complete all of contracts necessary to protect yourself? Are you in the profession of sales? We will have professional representation at ALL times
Now let’s talk about Marketing and Advertising
Do you know, ‘Mr. and Mrs. Smith’, how to successfully market a home? With 99% of all ads in the hands of real estate agents, who do you think the qualified buyers are more likely to call? Not to mention, marketing is directed first to the real estate agents internally, then to the public.
Statistically, less than 2% of homes are sold because of a sign or ad. Buyers almost never buy the house they call on. Most of the times, it’s just a way to find agents.
Okay, so why do serious buyers work with TEAM BJORKMAN?
- Buyers trust us to be knowledgeable about the current market so that they don’t overpay for a home.
- We are familiar with the buying process and guide buyers through the confusing buyer’s process
- Buyers trust us to handle the entire escrow and watch for the best interest in the purchase
- Buyers use our negotiation experience to negotiate them a better deal
We update buyers every day on new listings
TEAM BJORKMAN knows financing
- Buyers trust us for professional, experienced representation
- Buyers never have to face sellers directly and feel uncomfortable about making an offer
- Buyers can see more than one home at a time, without having to coordinate showing times with each individual seller.
- Buyers trust that our team will explain lengthy, legal contracts to them
- Buyers know that our team will find out about new listings before they even the Multiple Listing Service
So why does a serious seller work with TEAM BJORKMAN?
- We pay to market your home
- We do all the work for you the first time!
- We take most of the liability and risk, and represent 99% of the buyers with an exclusive buyer’s agreement
- We know how to qualify buyers and to assure you that, once the deal enters escrow, it closes escrow
We don’t feel uncomfortable negotiating a contract or asking for things out of the ordinary