Some of the FSBO’s will have high motivation also. Its hard to give an answer to the first part as everyone has a different agenda. If you’re buying property approach them like anyone selling. Just remember they are likely selling FSBO to save money. A lot of them can’t list because they would be in the hole.
Flex option contract, it means that you have rights to market and sell their home for them, but you are not buying the home yourself. Short, simple, and sweet. Works well for me. In fact I just started and have contracted six FSBO’s in the last week to “sell their home for free in seven days” using a flex option contract.
A flex option just gives you a non exclusive option to sell their home. It’s really good because you don’t tie up their home and they can still sell the home on their own. However, if you find a buyer first, then you do the deal. Basically you would go from a flex option into a lease option or wholesale deal,so you make money by whatever profit margin you factor in.
Hope I got that right… Somebody correct me if I’m wrong.
A FSBO is simply a lead. You really can’t put them in a
category such as FSBO leads are subject-to deals, or
FSBO leads are wholesale deals…
They are simply a lead source and it’s up to you on
what method of buying is best suited for that particular
seller’s situation and your requirements…
In regards to your 2nd question, you simply ask them
the same questions you are asking your pre-foreclosure
leads that you have been getting. I’m sure you ask them
a series of questions, that will apply to FSBO’s.
I have my assistant ask EVERY single lead that we get
in the same 29 questions. It doesn’t matter where they
came from or what type of lead they are; divorce, vacant,etc.,
they get asked the same questions as every body else…
Jeff, it would be great if you could post/send me a list of the 29 questions you and your assistant ask sellers. I’ve seen some of these lists in books, but most are much shorter, and probably much more broad.
I think it would really help some of us newbies who are looking to get in the game.
Did you arrive at your asking price based on market value? If so, are you adjusting your price down by 6% since we’re not using agents?
Something in the neighborhood of 90% of homes nationally are sold through a real estate agent. If I, as the buyer am not getting representation of a licensed real estate agent, and I’m still paying market value for your home, I’m essentially giving you an extra 6%.
We ask 29 questions because I want the seller to give me
everything. I want to know this person. I want to know there
life. Once I have everything at my fingertips, it’s all about what
I can structure from there.
Flex Option’s? I don’t use flex options. I use options, but I’m
guessing flex options are the same. We do all kinds of deals
and are not limited to doing just 1 or 2 things. The bulk of what
we do is… bringing in the leads. That’s our main focus…
Ok Some great thoughts, however no one has actually put down any of their questions so here are mine.
I ask them to tell me about their house, (How many bedrooms and baths, When built, sq ft, taxes, repairs, do they live in the property or rental or vacant, What do they like best about the house, what they like least…etc)
If it already hasn’t been asked in the previuos set of questions, Why are you selling? (Get details)
Is there a mortgage on the property? If so how much?
The famous question, If I were to pay you all cash and close immediately what would your bottom dollar be?
After they have named their lowest price and I have countered even lower, then I will ask this question. Would you consider owner financing? Or would you accept some of your purcahse price in payments? (This way the price discussed is in their mind at this point, terms are just the icing on the cake) I lean them toward a 1st, 2nd scenario if they need cash or need a larger downpayment.
With these questions, I usually have the deal sewed up on the phone thus the only thing left is to look at the house to see if I want to do the deal.