Saturday, November 26, 2011

Who Are For Sale By Owners?

    Now that you have your Florida real estate license, you need to start making money.
    In order to make money, you need prospects to talk to.  If you have done any research at all into the subject of making money in real estate sales, you have figured out  that listing is the most lucrative side of the transaction.  How can you meet some people to list? 
    This is a simple question.  Right now in your real estate career, life is simple.  You have few or no buying prospects.  You have few or no listing prospects. 

    What you need is prospects.  For Sale By Owners, are perfect prospects for you.  They advertise that they want to sale their house.  They put a sign in their yards.  They are easy to talk to. 

    For some reason, you are afraid to call them.  I believe if you understood them, your reluctance to dial the phone would go away.

    The first thing you need to know about Mr. Forsalebyowner is that he is just a "do it yourselfer".  Selling a house and laying tile looks so easy. Why would anyone pay a Realtor seven percent for something that looks so easy.  Why wouldn't someone at least "give it a shot". You can't be mad at someone for trying something that looks so easy.

    Mr. Forsalebyowner thinks he can handle this alone.

    Another thing you need to know about Mr. Forsalebyowner, he doesn't know nearly as much as you think he does.  Almost always Mr. Forsalebyowner's level of knowledge is dangerously low. 

    They usually don't know how to fill out a contract. They rarely know about legal matters that can get them sued like fair housing laws and lead base paint disclosures.  Don't take my word for this, go visit with a forsalebyowner with a house built before 1978 and ask them if they have a lead base paint brochure for their buyer.  Ninety nine out of a hundred will not.  They need you but they don't know it.

    Another misconception that you have about Mr. Forsalebyowner is that he does not like Realtors. This is not true. Most have no feeling one way or the other about Realtors.

    Another thing you need to know.  If they have been at it very long, they are frustrated.  As I mentioned, it looks easy.  After a few weeks, where is that buyer and who are these people with no money that keep walking through my house?

    Another thing you need to know is they are looking for a solution.  This is not a game. Mr. Forsalebyowner is not having fun.  This is important.  They need to get their house sold and they are looking for a solution to a big problem.  If you look like you have a solution, they are happy to talk with you.

    Be sure you understand this.  Ninety percent of forsalebyowners will list with a real estate agent.  They will list with you or they will list with your competitor.  When you finally come to understand this, how can you not believe these are wonderful prospects?  They need your product. They are easy to contact and they will buy your product from you or your competitor in the near future.  That is the definition of a HOT prospect.  If older agents tell you Mr. Forsalebyowner is not a good prospect, I think what he really means is he never learned how to work with these wonderful prospects.

    It is a learnable skill.  It is worth learning.
    Many forsalebyowners don't see the value of a 7% commission. You can't be mad at them for that.  You have never explained it to them. Many forsalebyowners have never thought about it.

    I have been to visit with thousands of forsalebyowners.  I am certain this is true.  You need to know this.  They are friendly and courteous.  After twenty four years, I can count on my fingers the number of forsalebyowners that have been rude or diccourteous to me.  Most of them treat me like a guest in their home.  That is what I am. That is how I act. That is how I have been treated by 99% of the forsalebyowners I have been to visit.  Where does this universal trepedation come from?  It is nonsense. Get rid of it.

    Because this is true, forsalebyowners are perfect practice for developing the skills to be a super lister.  You can't get good at answering objections and presenting your program without practice.  If you don't get face to face with some prospects, you will take a long time to learn vital skills.

    If you have plenty of other prospects, practice on them. If you have more time than you have prospects, then waste some time calling a few forsalebyowners. 

    If this seems like a good idea but you really don't know what to say or how to start, join me for my forty five hour post license class at Climer School of Real Estate ( ). I will teach you lots of essential skills and prospecting techniques. You have to take this class somewhere before you renew your intial Florida real estate license.

    Also, subscribe to this blog. My intent is to write for new Realtors that want to excell. If that is you, subscribe.


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