FSBOLEADS.NET

Summer is the peak season for FSBO marketing as this is prime moving time in most areas. One good idea for marketing to FSBOs for mortgage brokers that I recently heard is something that may seem silly to many but, in fact, is quite genius (in my opinion).

A broker in the Southwest has been teaming up with FSBO sellers on weekends and instead of doing the usual “sit at the open house and pre-qualify buyers”, she has been sitting on the front lawn with a lemonade stand. The lemonade is free, poured into cups with the broker’s logo and contact information on them, and is served from a table that has a large logo banner in front of it. This attracts more visitors than usual.

What I like about this idea is that it doesn’t restrict the broker to getting leads from only those who enter the FSBO seller’s home, but it opens up her lead potential to neighbors and anyone who might drive by. In fact, the broker who told me about this idea said that she gets more non-FSBO leads from her “open house lemonade stand” than she typically does from an open house itself. What a fantastic idea!

Let’s work some numbers: A 8′ x 2′ full-color all-weather banner might cost you a couple hundred dollars. That’s really your only large expense - and you honestly don’t have to have a sign professionally made. A sign on bright poster board would probably work just as well and cost only a couple of dollars. Lemonade, ice, and cups are all very cheap. You could do very well for yourself with a budget of only $20.

The good will in the neighborhood and with the sellers will be more than worth your time and effort (and $20), even if you don’t close a loan from a few hours in the sun.

Interest rates are on the rise, which while still low the increase is causing a tightening in markets for real estate services and mortgages.  As such, for sale by owners (FSBO) become a higher priority for both realtors and loan officers looking for their next deal.

Competition is fierce and fsbo leads are increasingly more sought after.  The trend will only continue as interest rates continue to climb.

Many FSBO marketers (Realtors) have one fatal flaw when they first decide to tackle the for sale by owner market: lack of patience.

9 out of 10 sellers will eventually list with an agent. It’s been this way forever and shows no sign of slowing. So for most, it’s not “if” but “when”. Taking this into consideration, doesn’t it make more sense to shift the sales approach from “sign sign sign” to simply “I’m here when you need me”?

Being in front of the seller as much as possible can be good, as long as you don’t create a negative stigma by being annoying, pushy, etc. Otherwise, let the “fruit” ripen on it’s own and be there for the “harvest”.

For sale by owner marketing for real estate professionals (agents and loan officers) has the potential of providing multiple leads from a single source. If an agent converts the FSBO into a listing then potential buyer leads are on the way. If a loan officer works with a FSBO they can pre-qualify buyers that want to tour the property, in addition to financing the FSBO’s next purchase.

This potential for multiple deals is one of the aspects of FSBO marketing that is so appealing. As one would expect in our day and age of technology, there are some tools and services out there to help you collect as many leads as possible from each FSBO you work with. For loan officers, FSBO3k.com comes to mind. There are other web programs out there, and most of them will help you collect buyer leads for a monthly fee.

In addition to website services, there are call capture services. This is a popular tool that many FSBO marketers use to collect leads when interested parties call for a “free recorded message” about the home. Mainly loan officers can use this tool, but agents use it also after the listing has been secured.

It would be wise for saavy loan officers and real estate agents to team up in their FSBO marketing efforts. Loan officers have a unique advantage when it comes to getting in the door with FSBOs: they’re not agents! But when the FSBO wants to list, the LO can then recommend the agent. This is a great win-win situation for both parties.

The bottom line is maximizing the yield from each FSBO, which is better done with modern technology and a good team of people working with the same goal in mind.