I would like to ask a question. I am a Realtor and an Investor. Who has a harder time with FSBOS, Realtors or Investors? I find that FSBOS are tough on Realtors, but prior to being a Realtor I was an investor, and I found that FSBOS were a little less tough on me in the investor role. I know that FSBOS are concerned about paying Realtor commission, but then they also feel that investors are out to steal from them. Any thoughts on this?
Ken:
I totally agree with you! They are very hard to work with. That is why I spend my time purchasing a majority of the houses I buy from homeowners that dont even know their house is for sale!
One thing you can try and you will have to check the legalities in your state is market the ‘absentee’ owners by direct mail campaigns:
“I will list your house for $200k or buy it for purchase it for $155k.” You could give them a break down of what their actual costs would be based on 6% commission, 3-4% Title, Escrow, FHA, Termite, etc…
I have a friend who does this and sends out 500 letters a week and does very well listing houses and buying houses that he also flips.
Best Regards,
Jeff Adam
Howdy kenneth:
This is true in a lot of businesses. It is just human nature. I go to a lot of garage sales with an antique dealer. We have been chased off from sales before because we are dealers and they were not selling to dealers. Folks are just afraid they are going to leave some money on the table or have to pay you money.
There are several techniques to overcome objections. Dale Carnagee Sales 101 comes to mind. The old “If I could show you a way to sell your home faster and with less hastle, would you be interested?” This stuff works, still after a hundred years or so.
Like Jeff said too if you hate FSBO’s go after REO deals and preforeclosures. We just bought a REO for $24,000 where the loan was over $120,000. Imagine trying to talk to that seller when the sales price would have been that high and worth about 25% of the payoff.
Good luck. You will snag a big fish soon with many hooks in the water.
Have You ever told them “What if I had a Investor that would buy it for 155k and close real soon! Or I can list it?”
then after there open to that Idea ask “What if that investor was me?” 