Written By: Mike Scalise, 1st Step Mortgage Group, has created a system where at least half of his business is from his successful FSBO marketing program. Visit his website www.HomesSoldByOwners.com for more information.
The For Sale By Owner market has increased greatly in the last few years and there are many economic indicators that suggest the FSBO market will increase even higher in the years to come.
This increase in homeowner's decisions to sell "For Sale By Owner" will in part be caused by the financing they used to buy the home in the first place - i.e. 100% Financing Programs, Interest Only Loans, Pay Option ARMS, Negative Amortizing Loans and 40 Year Loans.
Along with the ongoing predictions that the Housing Bubble will soon burst, and the National Average RealtorŪ Commission Fee being above 5%, many people that want or need to move, will have no other choice but to sell FSBO.
In fact, the top real estate trainers encourage RealtorsŪ to work with FSBO sellers by offering flat fee services in hopes of turning them into a client (if their home sells FSBO) when they are ready to buy another home.
What does this mean for Mortgage Originators?
In one word "Opportunity".
Many loan officers and mortgage companies will have new opportunities to generate a business that is built on relationships compared to just price. Marketing to FSBO's is not a new concept, however, the presentation and service you offer them must be unique and beneficial to the homeowner. Your goal should be to have a marketing service that will draw FSBO's to you so that they choose you over any of your competition - including flat-fee real estate agents.
I will share with you a consistent strategy that creates interaction with the FSBO on a weekly basis, presenting them with ideas, tips and information on how they can better sell by owner.