Written By: Karen Deis
Excerpt from Fast Company Magazine - November 2004 Issue
|
"Real estate agents have been on the endangered-profession list for a while (thanks, Internet and 2% brokers), but Home Depot may make them extinct. In seven southern states, the DIY store will be testing home-selling kits for the growing for-sale-by-owner market. For $12.95, sellers get a sign to put in their front yard, but more important, they get a listing and photos on www.Owners.com, which claims to be the largest for-sale-by-owner site, with 5 million customers. The site has an answering service that fields calls from prospective buyers, eliminating the role of real estate agents and their 5% commissions. If the test goes well, Home Depot plans to offer it nationally - and you will only see the loud blazers at country clubs." (Fast Company)
| |
For those of you who are not aware of Home Depot's stats, they are the world's largest home improvement chain and 2nd largest retailer (behind Wal-Mart) with 299,000 employees and 1,750 stores. (See our past Editorial on Wal-Mart and the mortgage business.)
Like everyone else, they see a huge opportunity in the "for-sale-by-owner" market.
Maybe real estate agents will survive - maybe they won't, but one way or the other, outside forces are going to change the way we do business.
|
Sidebar: Recently, the NAR filed a lawsuit claiming that FSBO websites violated real estate laws indicating that this was illegal because they were selling real estate without a license. The courts ruled AGAINST the NAR, stating that these sites are for informational purposes only and does not violate the law. If that were the case, the newspapers (classified ads) would also need to get a real estate license.
| |
That creates a HUGE opportunity for loan officers to market directly to the consumer, capture leads and close a higher percentage of loans within the ever-increasing FSBO market. And best of all, the Home Depots and FSBO websites of the world are doing it for us.
Factoid: The most likely person to BUY a home - is the person who is SELLING one. After all, they have put a FSBO sign in their yard letting the world (and you) know that they may be in the market to purchase another home.
And, best of all, these may just be the easiest deals you will ever close. They have been thru the mortgage process before. They usually have equity to pay off debts (if needed) and money for a down payment. Since they don't have a real estate agent to rely on, they are looking for that "trusted advisor" - and that person may just be YOU!
If you are tired of buying shriveled up leads from lead-generation companies, this is the next best thing since sliced bread.
I did a Google search and found over 13 million pages when I typed in the words "for sale by owner" and then further refined the search by typing in a city and/or state (for sale by owner Chicago) for example.
That way you will be able to narrow it down to your area of the country. Most websites contain the sales price, the property address, the name of the seller and phone or email address. (Don't pay hundreds of dollars for leads - these are free. All you have to do is dig a little.)
And if you really want an easy way to get FSBO leads, sign up with www.wbyowner.com. It's a service offered by Brett Warnock and for $39 per month, you are emailed every new FSBO listing, everyday, with names, phone numbers and addresses - in your little corner of the world.
As a loan officer, what more could you ask for? Call the seller, tell them you are NOT a real estate agent, but a loan originator and would like to help them with a mortgage on another home when their home sells. Don't ask them to refer buyers to you. Don't try to refer a real estate agent to them. Just try to get them pre-approved for another loan.
If you are looking for help in marketing to FSBO's, www.LoanToolbox.com has a great FSBO resource center for loan originators. Another resource can be found at www.LoanOfficerSeminars.com and a CD Replay I recorded entitled, "Working with FSBOs - an Untapped Market".
Finding your own leads, with people who are ready, willing and able to do business with you, who have raised their hands (in the form of FSBO signs) is a pillar of business you simply cannot ignore.
Here's to free leads for all...
Karen Deis, Publisher
Copyright, 2004, LoanOfficerMagazine.com
