Can a Realtor get 1-out-of-3 "For Sale By Owners" to list with them... without charging any commissions or fees?
The short answer: Absolutely.
Let's face it.
FSBOs don't want to pay you a dime in commissions or fees for these reasons and more:
But what if you could help these FSBOs by providing HUGE value, help them to find a great buyer that is more than willing to pay their full asking price, and... do it all absolutely free?
Sound too good to be true?
It's not, and as you'll see in a moment, I'm going to give you easy-to-consume logic that will prove to you that you CAN help FSBOs without ever charging 3-6% commissions, find them a ready and willing buyer, and do it all in just 7-14 days, start to finish.
Step 1 - Think Like An Investor, Not a Realtor
Step 2 - The Numbers. How to Structure the Deal.
Let's look at an example of how the numbers here would play out.
Let's assume the FSBO wants $100,000, for simplicity's sake. Normally, you as a Realtor would have to charge up to 6% for you and the selling agent, right? You would get 3% and so would the other agent.
But what if you could add your 3% to the purchase price instead, and never charge the seller a dime? What if you made the new resale price $103,000 and the buyer gave that $3000 to you for assigning a contract over to them, while the FSBO gets his/ her $100,000?
Is this really possible?
It is when you structure the deal on what is called a, "Lease with the Option to buy" (Lease Option or Rent to Own), and bring the FSBO a tenant-buyer who will lease the home for a few years (usually 1-3) while they work on their credit issues, saving up for a down payment, or gain more time on their job.
In this simplified scenario, all parties win because:
This begs the obvious question of: How many of these FSBO deals that you normally would have not gotten listed can you now get listed?
Lots of them!
"But wait, Russell!... Not so fast! This all sounds too good to be true."
You might be a little skeptical still, and be asking yourself, "ya but... but what happens if the FSBO wants part of the Option fee too?"
This may happen, and while many FSBOs will be satisfied with getting their full asking price and not having to pay any commission should the tenant-buyer exercise their Option, they may still be concerned that the tenant-buyer may not pay the rent and that they may have to evict.
I don't blame them.
And while this is always a possibility, a tenant-buyer who's ultimate goal is howeownership is by far less likely to default on rent since they've just put up a considerably larger "non" refundable deposit (the Option fee), so they have more "skin in the game" than say your regular tenant does.
Think about it.
You don't wash the rental car, but you DO was the car you own (or will own), right?
But let's say for arguments sake the FSBO wants 1/2 of the Option fee.
Is it still worth doing? Absolutely.
If you as a Realtor could do these deals every week to 2 weeks without having to deal with the hassle and frustrations you usually have to suffer through when working with banks, wouldn't you give up 1/2 of the Option fee to do these kinds of deals every week?
Me too. And I do.
I actually like the fact that the FSBO I work with are getting money to protect themselves just in case.
Makes me sleep at night and I'm sure they sleep well too knowing they've got some financial backing if the tenant-buyer fails to pay on time... or at all. Remember, greedy investors will always lose in the long-term.
Make great deals while avoid begin greedy, and you'll last for the long haul.
Step 3 - Start Contacting FSBOs Today and Get More Deals.
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