Creating a Winning FBO Information Packet

Create a Winning FSBO Information Packet

For Sale by Owner (FSBO) leads represent a unique opportunity for real estate agents at ANY level of experience.

But prospecting FSBO real estate leads requires a more patience and nuanced approach compared, for example, to prospecting real estate expired listing leads.

Creating a Winning FSBO Information Packet

We’ve written extensively about strategies for prospecting FSBO real estate leads, notably:

In this post, we will break down strategies for creating a powerful FSBO real estate information packets that will transform your real estate lead generation efforts.

THE FSBO OPPORTUNITY-WHAT YOU NEED TO KNOW

If you are not currently prospecting FSBOs, or have considered it but haven’t moved forward, here are some noteworthy stats that might give you the impetus you need:

  • Lower sales prices. FSBO homes, on average, sell for about $100,000 less compared to those sold with a realtor’s help. This significant difference highlights the potential cost of bypassing professional assistance.
  • A shrinking FSBO market. The FSBO market share hit an all-time low of 7% in 2023, suggesting a declining preference or success rate for this selling method.
  • Buyer familiarity matters. FSBO does have its place, particularly when sellers already have a buyer in mind. In fact, around half of all FSBO sellers had a buyer lined up in 2023.
  • Another study by Clever found that homes sold with a realtor earned their owners an average profit of $189,127 — or $46,603 more than homes sold without an agent ($142,524).

Here’s what’s interesting (and should motivate you more than anything): Eventually, 9 out of 10 FSBOs turn to a professional real estate agent. But despite the opportunities inherent in FSBO lead generation, only about 5% of all real estate agents actively prospect this potentially lucrative category of homeowners.

If you’re not among that 5% of agents, you could be leaving serious money on the table.

Keep reading, and we’ll help you get your FSBO strategy in gear.

HOW TO FIND FOR SALE BY OWNER LEADS

Prospecting for sale by owners (FSBOs) in real estate requires a proactive and strategic approach.

Let’s start with the MOST PROACTIVE approach you can take, and that is prospecting with Vulcan7’s INDUSTRY LEADING LEADS. Vulcan7 is widely regarded in the industry as the leading resource for superior, proven FSBO leads. And while FSBO is short for For Sale by Owner, we like to think it also stands for Fastest Single Business Opportunity! As a Vulcan7 client, you have access to:

  • Superior, proven contact information.
  • A user-friendly CRM to keep you on task, especially with follow-up.
  • A dialer that allows you to make up to 4 times more calls than you would by manually dialing.
  • Entry into a supportive community populated by many of the industry’s top-producing real estate agents.

­Vulcan7 can serve as the foundation of your FSBO prospecting program. But some agents add a variety of other outreach strategies to the lead generation efforts, including:

  • Monitor online real estate platforms, classified websites, and FSBO-specific websites for new listings. Set up alerts or notifications to receive updates when new FSBO properties are listed in your target area
  • Take time to drive through neighborhoods and look for “For Sale by Owner” signs. Note down the contact information and details of the properties.
  • Check local newspapers and community bulletin boards for FSBO advertisements.
  • Design and implement direct mail campaigns targeting neighborhoods with a high FSBO presence.
  • If you’re comfortable with it, consider door knocking in areas where FSBOs are prevalent. Be respectful and have a friendly, informative approach.
  • Build relationships with other real estate professionals, such as mortgage brokers, attorneys, or inspectors, who may come across FSBO listings in their work.
  • Maintain an updated and professional online presence with a user-friendly website and active social media profiles.

Remember to approach FSBOs with professionalism and respect. Clearly communicate the value you bring to the table and focus on building a relationship based on trust and expertise.

Creating a Winning FSBO Information Packet

WHAT TO INCLUDE IN YOUR FSBO INFORMATION PACKET

Earlier in this post, we said that working with FSBOs requires patience and a nuanced approach. It’s possible that within a month or so, the FSBO will look for guidance from a professional. You’ll want that professional to be you. So, while the FSBO is still a FSBO, here are a few tips for your initial outreach:

  • Call on the first day to introduce yourself.
  • Validate their decision. Don’t come across as suggesting they are making a big mistake. We all want validation.
  • Be persistent but not overly aggressive in your follow-up.
  • Provide value-answer questions and make suggestions to build rapport with the FSBO.
  • Do your best to secure a preview meeting with the homeowner to get valuable one-on-one time.

The final point above is critical: you should do everything possible to secure a preview meeting with the FSBO homeowner. The magic begins to unfold when you have a chance to meet face-to-face and build rapport with the homeowner.

Once you’ve secured the preview meeting, you’ll want to put together a comprehensive information packet that gives the prospect a solid look at your story and approach to selling homes.

Create A winning FSBO Information Packet

Here’s a suggested list of items to include in your FSBO information packet:

  • Cover Letter: Introduce yourself and briefly explain your expertise and how you can assist FSBO sellers. Highlight the benefits of working with a real estate agent.
  • Agent’s Bio and Credentials: Provide a professional biography detailing your experience, qualifications, and any relevant certifications. Include testimonials from satisfied clients, if available.
  • Market Analysis: Include a detailed comparative market analysis (CMA) of the seller’s property. This should highlight recent sales, current listings, and market trends to help them understand the competitive landscape.
  • Pricing Strategy: Explain your approach to pricing and how you can help them set a competitive and realistic asking price for their property.
  • Marketing Plan: Outline your marketing strategies, including online and offline methods, to maximize exposure for their property. Emphasize the use of professional photography, virtual tours, and targeted advertising.
  • Negotiation Skills: Explain your expertise in negotiation and how you can represent their interests to secure the best possible deal.
  • Legal Assistance: Detail your knowledge of real estate contracts and transactions, emphasizing how you can navigate legal complexities to protect their interests.
  • Networking: Describe your professional network, including relationships with mortgage brokers, attorneys, inspectors, and other industry professionals who can contribute to a successful transaction.
  • Timeline and Process: Provide a step-by-step overview of the selling process and a timeline for each stage, helping them understand what to expect from listing to closing.
  • FSBO Challenges and Solutions: Address common challenges FSBO sellers face and explain how your expertise can overcome these challenges, such as screening buyers, managing paperwork, and navigating negotiations.
  • References and Testimonials: Include references or testimonials from previous clients who have successfully sold their homes with your assistance.
  • Contact Information: Clearly display your contact information, including phone number, email, and office address. Encourage them to reach out with any questions or to schedule a consultation.

Customize the packet to reflect your unique strengths and the specific needs of the FSBO homeowners in your target market. The goal is to showcase your value and expertise while addressing the concerns and challenges that FSBO sellers may encounter.

One final and important point: make sure your information packet LOOKS PROFESSIONAL in addition to having the information above. Remember the line from an old TV commercial: “You don’t get a second chance to make a first impression.” Hire a graphic designer or, if you have the time and inclination, hop on a program like Canva to create a graphically dynamic and engaging packet.

SUMMARY

FSBOs should be an essential part of your business development strategy. If you’d like to learn how Vulcan7 can play a role in helping you prospect FSBO leads, CONTACT US HERE.

Good luck.

SOURCES

NAR 2023 Profile of Home Buyers and Sellers: 

FSBO Statistics & FSBO Regrets

 

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