UNDERSTANDING FOR-SALE-BY-OWNER WITH HELP:
“DO-IT-YOURSELF” DOESN’T MEAN “DO-IT-ALONE”
Did you know that an estimated 30% of all homes sold use some form of Do-It-Yourself (DIY) with help approach? This is called, For Sale by Owner with Help.
Homeowners around the country are utilizing technology to help maximize exposure and help sell their home; however, eighty-five percent will still use the help of a realtor for their expertise in the process. From 2013 to 2014 there was a 20% growth in entry-only MLS Listings accompanied by few, if any, additional agent services.
Real estate agents are beginning to embrace the trend, providing an opportunity to adapt their business models to this fast-growing industry segment. As a result, they experience an increase in their customer base and revenue.
Educating both agents and homeowners in the buying and selling process is our number one goal at Fizber, Inc. (www.fizber.com), as the fastest growing For Sale by Owner with Help or “Do-It-Yourself with Help” home selling website. So pull up a seat as we explore tips to place you and your business at the forefront of this flourishing market.
ACKNOWLEDGE THE CHANGE
First thing is first; acknowledge the change. Mastering new trades, historically performed by a professional in specific fields, has never been more popular. Whether the goal is to broaden knowledge or save money, from filing taxes, preparing a will, fixing a car or brewing a homemade beer, DIY is on the rise.
Homeowners are embarking upon a journey to have a more hands-on home selling experience. In the process, many come to understand that although they can do a portion of things on their own, they are more effective with the right help. As an agent, there is no better time to embrace, rather than resist, these changes. In 2014 alone, agents providing help and guidance with limited services earned nearly $3 billion in commissions and fees!
Diane Webster of America-At-Home Real Estate recognized the growing trend of limited services over 14 years ago and focused her business efforts on a market directed towards consulting services and Flat fee MLS (FFMLS). Once on the MLS, her consulting services advise homeowners on the required tips and advice necessary for countering offers and getting through the often confusing and frustrating contingency periods in the contract.
EMBRACE THE TREND
Now that this flourishing market is recognized, how can you become more involved? For many, change is embraced with eagerness. However, when change appears to threaten or hinder one’s line of work, it is natural to retract and reject change. We want you to know that there is a way to successfully incorporate this change into your existing line of business!
Wherever you are on the spectrum, to grow and or build your current stance to accommodate and serve this segment. Typically, a home listing and some marketing efforts are completed by the time a FSBO homeowner contacts an agent. Fizber clients gain marketing materials such as, video, digital property brochures, and virtual tours, which are professionally created and distributed. With the process off the ground, clients will expect and deserve reduced commissions. Now that some of the heavy lifting is out of the way, you can focus on ensuring the home valuation is right and use your existing network to quickly sell the home.
HOW FIZBER CAN HELP
When a Fizber client grasps and utilizes the available resources on the website, they familiarize themselves with tools and advice used by realtors in their normal day-to-day business and in turn respect the efforts of Fizber Real Estate Pros.
With a growing database of 1,500 Fizber Pro agents, a successful method of teamwork for both homeowners and real estate agents has been established.
Robert Tindell, owner and broker at EWave Realty, and a Fizber Pro, stated that most customers reach out to him looking for some form of a limited service listing. “My goal is to save the person money, leave nothing on the table, and be there for them as an advisor.” Fizber offers For Sale By Owner (FSBO) options but more importantly aims to educate and inform homeowners on all options and resources available to them, whether it is with tips and marketing tools or with more involvement from an agent. “I love educated home sellers,” Robert stated, “They take the time to understand the process and in result, basic issues and problems can be easily avoided. It is simple– educated home sellers appreciate the value of agents.”
Similarly, Diane said, “I love providing Flat Fee MLS (FFMLS) and consulting packages to consumers! It is very satisfying to be able to help people save thousands and thousands of dollars through the FFMLS each year. They love you for it and they are very grateful for your help. Savings on negotiations come up to tens of thousands of dollars for the client with the consulting package. We’ve saved our clients more than $10,000,000 in commissions over the years. I love this work!”
Fizber provides agents with easy solutions, making the most of the DIY with Help trend. As a Fizber Pro, once registered with the site (at http://www.fizber.com/pros/homepro.aspx), you can choose to provide any or all of the following services: Home Valuation or Comparative Market Analysis Services, Transaction Coordinator Services, Entry-Only Listing as well as Full-Service listing agent services.
- Home Valuation
Determining how much a property is worth is crucial. Listing higher than market value will result in a decline of interest by prospective buyers. Obtaining information relevant to the property surroundings, what other homes have sold for in the area, how quickly they sold, as well as market statistics, which an agent can provide, may increase the likelihood of a more efficient sale. During this period, an agent can build a foundational relationship with the homeowner. Saving and making money is essential, yet building lasting relationships is the key to flourishing future business and productivity.
- Transaction Coordinator
Often, when a FSBO finds an interested buyer, they realize a lot of paperwork is necessary to formalize the process. This is a key area where a Fizber Pro can offer limited services that make a significant impact on the process. Savvy agents know this and are providing these services as either stand-alone transaction services, or as a service upsell on an entry only MLS Listing. This is a win-win situation as the customer completes the sale of their home with confidence and the agent can earn great revenue on very specific work.
- MLS Only Listing
According to industry statistics, entry-only MLS listings increased 20% from 2013-2014. If history is any indication of where the 2015 FSBO market is heading, one can assume limited services including consulting and FFMLS will continue to be a growing and lucrative market. Like other requests for ‘a la cart’ or limited service, entry-only MLS listings have great appeal for both agents and home sellers. Agents who offer these services are doing less work (no showings, or open houses, etc.) and earning commissions while providing a valuable service
GET INVOLVED TODAY
It is our goal to help connect homesellers around the country with agents who are seeking to provide customized services as an integral part of their Do-It-Yourself with Help home selling process.
We aim to educate and empower both agents and home sellers to take advantage of technology and maximize either their earnings or savings through the For Sale by Owner with Help approach. We encourage agents to review their strengths and then embrace new opportunities to build their business and serve a flourishing segment of the real estate industry.