A great real estate tip is to start working with the For Sale by Owners (FSBO). People that have For Sale By Owner (FSBO'S) signs in their front yard are just simply trying to save money by not hiring a Realtor to sell it. These people usually have had bad experiences with Realtors in the past. They would rather try to sell the property themselves and save money.
Dealing with these owners is usually easier than dealing with Realtors. We have seen many times when we make an offer to a Realtor, they never present it to the owner. Some of the offers we make are low and the Realtor knows if the owner accepts our offer that they will not make their commission.
The positive side of dealing with FSBO'S is that we can find out their situation and offer them several different ways to solve their problem. Here's another great real estate tip, create multiple solutions or offers to present to FSBO's. It will increase your acceptance ratio of accepted offers. More accepted offers, the more money you will make.
4 FSBO Real Estate Investor Tips
The most important thing you can find out about the seller is to ask what their situation is. Do you need all cash today? Are you moving soon? Will you receive some cash now and accept payments? Are you getting a job transfer? And etc.
A) Be A FSBO'S Friend:
Owners are looking for people to solve their problem. The last thing you want to do is to make the seller feel uncomfortable. So be their friend. You will find that they will respond better to your questions if they feel comfortable with you.
B) Motivated Sellers:
When talking with sellers, find out their motivation to sell. If a seller responds to you with an attitude of, “I need all cash today”, and that they have the best home on the market, move on to your next lead. Don't waste your time with unmotivated sellers.
C) Make 2-3 Offers:
Always offer 2-3 different offers and make the seller choose. By making several offers to the seller, the seller will feel that they will have to choose one. This is a great way to increase your chances of getting the deal.
D) Help People:
You are in the real estate business to help people. If you do not learn how to help FSBO'S with their situations, you won't make any money. When people feel that you are there to help, they will be more responsive to you. This produces deal after deal giving you the best real estate profits.