Just like these buzzards circling the scent of their next meal, many realtors are circling FSBOs too!
There is another way to work with "For Sale By Owners" that I promote from what my colleagues are doing in other markets too. Instead of asking for their listing, ask if you can help them by getting all of their prospects pre-approved before allowing prospects to see their house!
Mention to your FSBOs that your favorite Mortgage Advisor (me, I hope!) just did another study of his prospects and year-to-date, he had the following results. Out of 509 applications taken in this market Jan-Oct, 48% for the borrowers had a credit score lower than to 580 meaning they cannot get a loan right now. 15% were in the grey area between 580 and 619 meaning they might be able to get a loan if they have good compensating factors and if they can pay off their collections, charge-offs and judgments. But only 37% had a 620 credit score or higher meaning they have a shot at getting approved.
For this 37% of home shoppers in our market, less than half have any money for the down payment and closing costs and of those, many do not have an urgent need or strong desire to buy. Also, many have contingencies too.
Based on this, only around 1 out of 10 prospects are really a "qualified" buyer. In other words, the FSBO is going to be wasting a whole lot of time with people who will not be buying their home.
So, work up a flyer with your contact information and offer to give your FSBOs some suggestions on how to sell their home and ask them to tell anyone that contacts them to call you so you can screen them. When you start getting prospects, call me and I'll try to get them pre-approved and I'll keep you posted on my progress.
Then we can work together to try to get the borrower to use you if they decide they do not want their house!
And by staying in touch with these sellers, when they do decide to buy, YOU are the one getting your FSBOs' listing!
Senior Mortgage Advisor
PHH Mortgage - 843-230-7929
Senior Advisor - Helping you GROW your business!
www.activerain.com./luckydog1 - SC
www.activerain.com/luckydog2 - NC
http://samthompson.phhmortgage.com/
Great point! I'm stealing your numbers for my next presentation! THANK YOU!
Sam,
Thanks for the post. The alignment with the FSBO has been a time proven strategy. Thanks for sharing.