FSBO Guide - Authorify

Step #4: Sometimes, You Have to Do This to Get the Listing People don’t always like to admit this, but sometimes you have to buy a listing. In fact, when the market is hot, you actually should want to buy listings. When the market is really hot and there are a lot of FSBOs, the only way you’re going to be able to list any of them is if you buy the listing. This method usually works out in your favor because you generate a lot of activity for the client, driving up the price. I met with a FSBO 12 years ago. He had his vacant lot priced at $180,000. I told him that I thought I could sell it for about $200,000. I listed it at that price, and after about three months, it sold for $185,000. His net, after commissions, was $174,000. Basically, he made money by hiring me to sell his vacant lot. Let me explain why. His net profit after commissions was about $174,000, but if he had sold the lot on his own, he likely would have accepted an offer of $170,000 So he made more money than he would have, and he didn’t have to do the work. He got a great deal, especially considering that most FSBOs have to put in 80–100 hours of their own time to sell their property. He saved a lot on time investment as well. I’ve done this same thing with many other FSBO listings. On multiple occasions, I have secured a FSBO home and then listed it for $10,000–$15,000 dollars more than the owner felt they could get for the home. Even if I do not end up selling the home at the higher price, the seller ultimately realizes that they haven’t really lost that 6% commission because I’ve done all the work for them — and they likely would have ended up with a much lower offer anyway. Buying a listing can be a great strategy. It’s not something that you would want to do all the time but used correctly, it can often work in your favor. Key Takeaways 1. Sometimes — especially in a hot market — it may be advantageous to buy a listing. 2. This usually works in your favor, because you generate activity for the client, driving up the price.