buyersThough they can be tough to convert, FSBOs can offer a great source of income and be effective if you have the right tools and information to present to a For Sale by Owner.

Each year, the National Association of REALTORS (NAR) compiles data from around the Nation regarding profiles of buyers and sellers. The following are 2017 statistics and great tools to use when working FSBOs:

  1. FSBOs typically make less when selling their home on their own. Let them know the facts. According to NAR, FSBOs generally sell for less than homes sold with the use of an agent. In 2017, FSBO homes sold for a median price of $190,000. However, the median sales price of homes sold with an agent was $250,000. That’s a 24 percent difference. This significant difference can be a powerful point to make to a potential seller. 
  1. FSBOs do sell more quickly. It is true – FSBOs sell a lot quicker than those listed with an agent. Last year, 58 percent of FSBO homes sold in less than two weeks. However, homes should sell quicker if they are potentially 24 percent under what a real estate agent can sale them for. Let them know that their house will probably sale very quickly, but also let them know at what cost – their equity. 
  1. FSBOs are looking for value. Studies suggest that FSBOs will work with the first agent who can show them value as to why they should be hired. Not only will the above facts show the value of hiring an agent, but also be prepared to show them why they should hire you. What makes you unique. Have a well thought out plan and professional marketing materials to present your case. 

Most sellers look to selling their home on their own because they lack the facts and the right person to help them achieve their goals. Be the one to educate and prove value. This is the best way to help them make the right decision.

For more great tips to succeeding in your real estate business, grab a copy of my new book, 21 Habits of the Highly Successful Real Estate Entrepreneur.

By Mike Weinstein, MBA. Scott Colbert (West USA Realty) contributed to this article.