In the hot real estate market, FSBOs were overpricing homes hoping to jump on the quick-sale bandwagon. Those days are gone and, ironically, FSBOs are seeing the opposite now: Owners are underpricing their homes.
Why? “These sellers are using sites like Trulia and Zillow to price their homes,” says real estate trainer Will Weaver. “The problem is that those sites use a whole city and average prices per square foot. For real estate professionals, we only use a square mile and many times never even cross the main road to get a more accurate value,” he says.
As such, he says, real estate professionals help price properties more accurately. There are opportunities for you to get your foot into the doors of FSBOs.
Weaver is using a new technique in his M.O.R.E. Core Boot Camps called the Trulia/Zillow technique to convince FSBOs to list with him.
“The only pricing sources they have are FSBO.com, craigslist, Trulia and Zillow, so almost all of the time, they’re leaving money on the table,” he says. “They’re undervaluing their homes because they don’t have access to our market information.”
Here’s how his technique works:
- Ask them the magic question. “If I can put just as much or more money in your pocket, will you consider talking to me?,” he says. Then, he schedules the appointment.
- Price the home. Then, Weaver uses the most accurate MLS and market data to come up with a fair market value for the home.
- Never talk price. Huh? “No,” says Weaver. “Once I’m at the appointment, I don’t talk price until the homeowner is sold on me and my company,” he says.
By Tracy Velt