the Realtor's Loan Specialist
The FSBO First Aid Kit
In his book, How To Master The Art of Listing & Selling Real Estate, Tom Hopkins-the top real estate trainer in the U.S.-suggests giving FSBO's as much help as you can. They'll come to you when they are unable to sell their homes, and 86% of them will list within three months of putting their home on the market. To get, you have to give, so create the following package of forms to give away to FSBO's:
1. Purchase Agreement. This document is also called the deposit receipt, earnest money receipt, or binder, depending on your state. Use a generic form; not your company's.
2. Escrow, Settlement, or Closing Instructions. Again, different states use different names. These instructions have to be completed by trained professionals, but blank forms will give buyers and sellers an idea of what they need to think about in advance.
3. Title Insurance Policy. Get some blanks for examples.
4. Settlement or Closing Statement. Use VA or VHA forms if you can.
5. Deeds. Three types, available in stationery stores, are: General Warranty Deed, Special Warranty Deed, and the Bargain and Sale Deed.
What are you going to do with all this? Put copies in large envelopes and mark them, "For Sale By Owner First Aid Kit." Then give them out, but not without explaining the purpose and complexity of each form. This package will show FSBO's that your commission is well-earned. How? By helping them through the emotional, legal, financial, and other complexities of a real estate transaction. If they are overwhelmed, so be it. You can relieve them of that stress, and they will realize that soon enough.
I am confident you will find this strategy makes a difference in your FSBO business.
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Paseo de Valencia, Suite 310 Laguna Hills CA 92653
Loan broker # 01390583