A Behind The Scenes Look At The $40,000 For Sale By Owner System.
89 percent of sellers sold with the assistance of a real estate agent, up slightly from 88 percent the last three years, and only 8 percent (down from 9 percent) were FSBO sales. The share is the lowest since this data collection started in 1981.
Did not want to pay commission fee: 48%
Sold it to a relative / friend / neighbor: 21%
Buyers contacted seller directly: 18%
Did not want to deal with an agent: 6%
Agent was unable to sell home: 5%
Seller has real estate license: 1%
Could not find agent to handle transaction: 1%
Other: * less than 1%
Source: 2015 Profile of Home Buyers & Sellers, (National Association of REALTORS® - Research, 2015).
The Success Formula
Meet 2 by owners every 30 days = 24 year
50% don’t work out for one of many reasons; this leaves 12 you eventually make a presentation to.
Of the 12 remaining, convert 60% - which is 7 of the 12.
Of the 7, six close. Let’s even plan for one falling through; it can happen.
$250,000 x 3% = $7500
$7500 x 6 = $45,000 Gross Commission Income (GCI) (This is one stream of income) This is in addition of your other streams of income.
Places to find by owners
Driving around - showing property, going on listing appointments, previewing property. These are all opportunities to find by owner opportunities as you’re out in the streets.
Friends that are driving through neighborhood jot down addresses and phone numbers.
Online - Craigslist, FSBO specific websites. Research your local publications.