Calling FSBO to Find Motivated Sellers

Jan 05, 2010 Comments Off by

You just received the course from the infomercial. You so excited to start your journey to become a real estate investor. The late-night real estate guru suggests you start by calling the FSBO (For Sale by Owners) in the newspaper. He suggests to ask them if they are open to accepting payments for their equity? Hmm… sounds easy enough. But should you? Is that how the Dealmaker finds deals?

If you want to get discouraged, shot down, and have a lot of time on your hands, sure make the calls. However, think about it this way, would you call everyone in an apartment complex to see if they wanted to buy your house or would you advertise the home and have them call you? Having them call you is much easier!

Qualifying Sellers

By having someone read your copy (words in your ads) and then respond by calling you, qualifies them as a prospect that is more likely of being motivated to sell their home with terms (creative offer). Why? As a real estate investor, your advertisements are geared toward buying houses fast, escaping foreclosure or two house payments.

I never call to locate motivated sellers! My time is better utilized by attracting sellers to call me by effective marketing and so is yours. It’s a matter of effectively using your time and getting qualifying the leads to seek out your services than you calling unmotivated sellers.
Look at the “Real Estate for Sale” section in your local newspaper. How many sellers do you suppose are sitting around waiting on an investor to call them with a creative offer? Which FSBO will be open to you calling them and offering them something other than a cash deal? Few to None.

Sellers handling the sale of their home are typically anti-Realtor or expect to ‘save’ on the Realtor’s commission. I also find that FSBOs are more likely overpriced than listed properties.

Let’s get by to you calling on their ads.

The Seller just arrived home from a long day. After going through their mail, they start dinner and watch the evening news. Ring! Ring!…

“Yes, I’m calling about your home for sale.”
“Oh great. What would you like to know?”
“What is the…” After going through the routine of common questions, you ask:
“Would you be willing to take payments for your equity?” or “Are you open to a creative offer with me taking over your payments?”
“What?” the Seller responds, “What are you talking about?”
“I’m an investor and I am inquiring if you’re interested in an offer, where I make your payments on the home.”
“How about getting your own loan and make your own payment!”
- Click.. -

The Problem:

* There’s no need to sell, hence the seller is not motivated.
* The Seller has not been conditioned by reading your advertisement so they are not a qualified prospect.

Motivated Sellers Have a Need

Motivated Sellers rarely run advertisements to sell their homes. Time is not something they have to spare. Motivated Sellers need to sell their homes fast. Running ads or listing their homes with a Realtor is rare. There are exceptions.

Here’s an important point to remember. Over 80% of the creative deals I close are with Sellers that have homes that are not on the market. There’s not a ‘For Sale’ sign in the yard. The home is not listed in the MLS nor is it advertised in the newspaper. When I began buying creatively, I wasn’t sure I was at the right house when I went to meet with the sellers because I was looking for a ‘For Sale’ sign in the yard.

Make better use of your time and efforts. Begin marketing to attract motivated sellers to call you. You’ll find those calling you are more likely to accept a creative offer because they have read your ad and understand you buy houses fast. Dealing only with qualified prospects is an important key to your success as a real estate investor.

Getting Started

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