Many real estate agents target For Sale By Owners (FSBOs) and have little success after the initial conversation when the seller asks the agent to cut his commission. Yet targeting FSBOs can be profitable. According to the National Association of Realtors, about 80-85% of FSBOs eventually end up working with an agent.

The absolute worst way to market to FSBOs is to call them up and explain that most people who try to sell their home themselves either eventually work with an agent or get a much lower selling price for their home. The better approach is to offer them educational resources that can aid them in selling process.

You might wonder why you would want to help someone sell their home without paying you. There are a few reasons this can be a great marketing strategy. First, if the seller isn’t successful at selling his home, he may use you when he realizes trying to do everything by himself isn’t working. Second, if he is successful at selling his home himself, he may use you to buy his next home or allow you to refer him to another agent in a different area. And finally, by helping the seller, you may land additional business – either because he refers people in his network to you or because he has an interested buyer who needs representation.

Here are some ideas for informational and educational resources you can offer when marketing to FSBOs.

• Free home selling guide – Create a guide that walks FSBOs through the process of selling their home by themselves. In the guide, provide helpful tips and advice on how to make sure their buyer’s finances are in order, how to stage their home for showing, and how to make sure their property is in the best possible condition.
• Free competitive marketing analysis – Put together a competitive marketing analysis to estimate what their home is worth.
• Lists of recommended vendors – Compile lists of appraisers, lenders and contractors in your area.
• Free marketing materials – Print up a few flyers or offer the seller a “For Sale” sign. On the back of each, you can print “Compliments of Your Name” to further market your services.
• Sample real estate ads – Put together a kit of your most successful real estate advertisements to show sellers how to write a great ad for their home.

You can market your For Sale By Owner kits on your website, in advertisements you place in local publications, in mailings you send, or during phone or face-to-face interactions. If sellers ask why you are providing these resources for free, tell them you’d like to be the first agent they interview if they do decide to list their home.

By following up with FSBOs and offering sound home selling advice, you build a relationship with them over time, so if they do decide to list their home with an agent, you are the first one they call.

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