There is quite a bit of literature published about how a real estate agent can help an FSBO (For Sale By Owner) client, but not very much about how FSBO sellers can benefit real estate agents.
You have to understand that real estate is a vast market and that there is a virtually unlimited number of avenues down which an agent can venture. When you limit yourself in the real estate market – in any market, for that matter – you sell yourself short.
Because of this, FSBO clients can really bulk up your sales and provide an additional (if even supplemental) avenue of income for you.
Numbers To Consider In Your Real Estate Listing Marketing Plan
Real estate is a numbers game – plain and simple. For every one hundred people that you talk to about real estate, you’re probably only going to make money from five or six of those people. But when you include that extra portion of the market that includes FSBO sellers, you open up your sales to extra commissions.
The idea is to contact as many FSBO clients as possible. Some of them will not be interested, but many of them will, especially if they see an opportunity to sell their house. Lack of sales is extremely frustrating for any family, and once they’ve seen that selling their home themselves isn’t as easy as they once thought, they’ll be more apt to consider other options, such as your assistance with all or part of the sale.
Standard Of Living Within The FSBO Market
Numbers aside, however, the FSBO market is one whose median income is over $104,000. You have to realize that of the real estate market as a whole, a vast majority will be homes with owners that make less than $40,000, which means a smaller commission. While you shouldn’t base your entire real estate career on finding sellers who have large salaries, you can easily target that market by getting involved with FSBO sellers.
You should also know that FSBO sellers have a higher average home price. Again, this means higher commissions and more qualified buyers, which will lead to a steady and reliable income for you.
When you’re playing with odds like that, and the standard of living is higher, you stand a good chance of coming out on top. Real estate agents depend on sales for income since their entire livelihood is commission-based.
While this is advantageous for the top-rated real estate agent, this is a terrible tragedy for those who only sell two or three homes each year. Unless you plan on selling at least three properties each month, you won’t make much of an income from real estate. FSBO clients make success a possibility for an agent.
Getting Ahead of The Competition
Most of your competition – i.e., other real estate agents – won’t waste their time with FSBOs. When you target a market that has little or no competition, you’ll have more luck in getting a sale.
Think about the city in which you live. If you reside in a town with fewer than 100,000 people, then you have less competition. But if you live in a city like New York or Chicago or San Francisco, you have thousands of real estate agents literally to beat to the punch, both inside and outside of your office. Those aren’t great odds.
When you tackle a market like FSBO, you’ve already ruled out this one great inhibitor. Most real estate agents do poorly because there are so many other agents battling for the same listings. If you’re looking to cut out the competition entirely – or almost entirely – then FSBO clients are the way to go.
None of this even calls to attention the satisfaction you will feel from helping out someone who is having trouble selling their home.
FSBO clients are likely to get discouraged, and if you can make their day brighter, then you’ve performed a service for your community. Helping others in real estate is a fringe benefit that isn’t always enjoyed in other industries. Although you will be making a significant income from this practice, you will also know that you’ve earned your paycheck and that you are being paid what you’re worth for the work that you do.
You will also gain the satisfaction of meeting new people and having new experiences. Each time you contact an FSBO, you’ll be embarking upon an adventure that has several different possible outcomes. How will you be able to help the family? What services do they need that you can perform? How have your advertising and great customer service skills paid off for you?
All of these factors combine to create a satisfying, uplifting career in which you help other people in order to generate income. From experience, there is no greater career than one in real estate.