Targeting the "For Sale By Owner" market

[Carmella]

Hello All,

I was wondering if anyone has tried to tap into the for sale by owner market?

Business is very slow right nowm2to say the least), so I was thinking about getting one of those For Sale By Owner Magazines at the grocery store and
cold calling some home owners and saying something like this:

Hello my name is ### and I am with #### Appraisal Co.
I see your home is For Sale and was wondering if you were interested in finding out the market value of your home, You can use this appraisal as a selling point. Blah Blah Blah... Or Whatever,,woohoo

Just wondering if anyone has tried anything like this?
Thanxx,
Joey

 

[Midwest Guy]

State laws vary on Do Not Call lists. Careful on cold calling.

Try carrying a flyer or door hanger bag with papers offering your service.

Of course no FNMA forms for such an assignment.

 

[Kris Chase]

FSBOs are cheap anyway, that's why they are selling their own house. Doubt if you could get them to cough up the fee.

 

[Smokey Bear]

Today, a lot of FSBOs are FSBOs because there's not enough equity to pay a commission to an agent. They don't want to know what it's worth, they need to cover the loan and get out.

 

[Wendy]

I find there are two types of FSBO sellers: the Knowledgeable and the Deluded.

The Knowledgeable don't need your help and the Deluded won't like your results.

 

[hglenbetts]

Around here, many FSBO's have contacted at least one Realtor and received a CMA from them, and are using that as their referance for value. I do not door knock (to much lit a the traveling salesman, no credibility) I mail an invitation to call me which includes a price range that might fit their situation, list of services provided (Accurate measurement, interior and exterior photos, overview of home features that may effect value, etc.) When they call, I try to set an appointment, bring an engagement letter, discuss scope of work and have them sing a statement that they understand, that the report is only for their personal use and can not be used for their buyer's mortgage.

Another resourse would be to market to the area realtors, with all those unsaleable listings. "Team up" with them to provide the owner with an in depth analysis of the market, showing declines and trends. I suggest to the agent that the owner pays for the report and that they offer to reemburse the seller for the report at the closing of the successful sale, after they get the property adjusted correctly.

 

[Carmella]

I do not door knock (to much lit a the traveling salesman, no credibility)

I do not door knock (to much lit a the traveling salesman, no credibility)

I highly disagree about the no credibility, traveling salesman quote.

I have door knocked mortgage companies and they have commended me on putting forward the effort to actually go out in the field and find new business.

Its not like I am selling vacuum cleaners..........:new_2gunsfiring_v1:
Actually, How is the vacuum business right now?

 

[Josh Shapiro]

I tried the FSBO and it didn't work out that well. I have however clinched a different side of that "type" of market and have found it to be very profitable. I really do not want to go into too much detail as I would hate to have too much competition in my area........But I have found that realtors have been very responsive......

 

[KenRossman]

I have been doing a fairly consistent volume of pre-listing and FSBO appraisals for years. Most come via my web sites or on-line directory listings. Lately a few have come via blog posts on active rain. I also occasionally get referrals from local Realtors, Attorneys and past clients.

It is full fee, easy work with none of the typical AMC or underwriter nonsense & guess what - these clients actually want to know what their house is really worth and many will eagerly pay extra for a seasoned knowledgeable pro.

 

[hglenbetts]

I highly disagree about the no credibility, traveling salesman quote.

I have door knocked mortgage companies and they have commended me on putting forward the effort to actually go out in the field and find new business.

Its not like I am selling vacuum cleaners..........:new_2gunsfiring_v1:
Actually, How is the vacuum business right now?

Joey,
We were talking about door knocking FSBO's, door to door through a neighborhood sort of thing.

I would consider "door knocking" mortgage companies more as business to business networking, and I have always done that, even in my previous professions.