subject: How To Best Approach A "For Sale By Owner" FSBO Prospect As A Loan Officer by:Rob Lawrence [print this page] FSBO's are a great source of new customers for you, and are an often overlooked demographic. Put yourself in their shoes. (If you've ever tried to sell property yourself, you know what I mean).
FSBO's are:
* An un-tapped resource that many loan officers don't even know about.
* Do-it-yourself types that are independent minded.
* Fairly knowledgeable about real estate (or at least they think they are!)
* Skeptical of outsiders, because they think you may be a real estate agent, trying to get a commission on their house. (Once you show them you can help them, and for FREE, their resistance melts away).
* Most of all, FSBO's are looking to save money on real estate commissions, usually 6% of the selling price. On a $400,000 house, this is $24,000 out of their pocket!
FSBO's need:
* An outside opinion on the real estate market.
* An estimate of the approximate value of their property.
* Marketing materials to help them sell their house.
* Someone they can ask questions of, and someone who can act a trusted advisor to them during the process.
* A way to weed-out all the tire kickers and time wasters that want to view the house, but who are NOT qualified to make a buying-decision (because they don't have financing set-up).
* New financing set-up for the new property they will be buying, from the proceeds of the sale of their home.
As a loan officer you can provide all of this to the FSBO prospect and more. You'll not only save them time and money, but a lot of heartache as well. And in return, the FSBO, will provide you with a steady stream of interested buyers who are looking to purchase a home.
And remember, even if the buying prospect doesn't purchase the FSBO home you are dealing withyou still win! You STILL get a prospect who needs financing arranged and is readily looking for a property. It's a perfect matchand everybody wins!
You'll want to keep the above points in mind when you make your approach to the FSBO client. These are the hot-button points to make when speaking to them. I usually advise sending a letter first, followed by a phone call.
If you aren't already considering FSBO's into your business plan, you're missing a huge opportunity and a virtually untapped market. Yes, it takes a bit of effort on your part. But a little bit of time invested upfront, can pay huge dividends down the road. You've got nothing to lose, so give it a try!
About the author
Rob Lawrence is ranked one of top national trainers in the mortgage industry. He is the currently the CEO of Battlecall.com, coaching, tools and resources to turn mortgage professionals into mortgage warriors. Visit http://www.battlecall.com for his free "Sink Or Swim" weekly newsletter, mortgage training, marketing advice and more! Jumpstart your career in the mortgage business, starting today.
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