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Use Synergy Partnerships to Leverage FSBO Synergy

In my last post I commented that the referrals you might receive from homeowners selling their homes themselves could actually far exceed the value of the listings missed out by not listing the home they are attempting to sell.  You are more likely to receive value from these referrals if you leverage your resources through a system.  Such a system for leveraging FSBO referral relationships would involve putting together packages of vendors for the homeowners in such a way that you are solidifying your own synergy partnerships.

Every real estate sales professional should have partner relationships comprised of vendors of the real estate industry.  You should have reciprocal referral relationships with each of these vendors.  When you present these partners as a package to FSBOs, there will be several advantages for you:

  • You are providing additional value for the homeowners, solidifying your relationship.  Any value you add makes it more likely that they will list with you when the time comes.
  • If they work with your partners, you can be sure that these vendors will not be referring other real estate professionals when and if the time comes.
  • Referrals that arise from FSBOs may flow through these vendors.  For example, you may suggest that any prospects obtain a pre-approval through a lender is accomplishing this task, you can make sure you will get a call if they do not have a Realtor.
  • You are providing value to your partners, invoking the law of reciprocity.

What vendors will a homeowner need when they try to sell on their own?  In addition to a lender, they might need an appraiser, home inspector, pest control company, moving company, tax advisor, insurance company, home stager, and more.  Your package should include as many vendors as possible because it will broaden your own relationships and may convince the homeowner that they would be better off with a real estate professional running the show.

Capturing more listings by targeting the FSBO market is more likely to happen with a game plan including value offerings and leveraging the resources at your disposal.

 

For more information on "Obtain More Listings", follow this link to my previous posts.

 

I welcome your comments and suggestions.  If you wish to hear more on this topic, SUBSCRIBE TO MY BLOG.  I try to update my blog every 2 days or so with some helpful information.  Have a successful week!

 

John Cannata  ph# 214-545-5604

www.TxMortgageConsultant.com

 

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Texas Home Loan Expert

Frisco TX Mortgage

      

 

The views expressed on this site are mine alone and do not reflect the views of my employer.

Comment balloon 14 commentsJohn Cannata • September 09 2008 09:53PM

Comments

Hey John-

You forgot one vendor in your list - a Cash Flow Specialist.  If a person sells a home on their own and carries a note (provides seller carry-back financing), there may be a time in the future when they will want, or need, to sell that note for a lump sum of cash.  If you have provided for that possibility then the owner will really think you are sharp.  Check out my website at www.GreeneNotesLLC.net

Posted by Shan Greene (Greene Notes, LLC) about 11 years ago

Hi John;

Very interesting post and well put together, thank you for sharing.

Anthony

Posted by Anthony Stokes-Pereira, Realtor (Better Homes and Gardens Rand Realty) about 11 years ago

John, I was a FSBO in another state before I got in to real estate.  Your information would have been helpful.  I had an incredible location and did sell my house myself and after moving here decided to get in to real estate.  That was almost 12 years ago.

Posted by Marchel Peterson, Spring TX Real Estate E-Pro (Results Realty) about 11 years ago

Shan - Thank you for the information.

Anthony - Appreciate the compliment and hope that it helps, if you work on some FSBOs.

Marchell - That is good feedback because you would know whether this would have helped you or not.  Sounds like you sold you house though, which defeats my purpose.  LOL   However, it helped you know that you wanted to be in real estate, right?

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 11 years ago

Good information.

Posted by Roxanne Schilling (Coldwell Banker Lake Tulloch) about 11 years ago

Great Tips John.  I have the basics in my FSBO package, but the list of area vendors is a great idea.

Posted by MeLisa Minter, Realtor, Bay Area Houston Real Estate Agent (Minter Real Estate Services) about 11 years ago

Thank you Roxanne.

MeLisa - How long have you worked on FSBOs?  Glad I could add to your arsenal of information.  Good luck!

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 11 years ago

Great post.

Posted by Nick Good, www.TheGoodHomeTeam.com (The Good Home Team with eXp Realty) about 11 years ago

Love it! Team work is what it's all about and having a list of professionals on your team is key. There is power in numbers and expertise.

Posted by Karen Otto, Plano Home Staging, Dallas Home Staging, www.homes (Home Star Staging) about 11 years ago

Thanks Nick.

Karen - I made sure to include Home Stager this time. :-)

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 11 years ago

and we thank you!

Posted by Karen Otto, Plano Home Staging, Dallas Home Staging, www.homes (Home Star Staging) about 11 years ago

No I just need to incorporate your link so that people know who I am talking about when it comes to home staging.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 11 years ago

John.... a good idea about packaging up the services for FSBO's.....  but from a mortgage professionals perspective, isn't it a fine line for a lender or loan officer to get involved?  I bring this up because I have been reading some of your stuff. And I have worked for a few large lenders that tried marketing this. But one big important thing that was overlooked. If you are trying to build realtor relationships, doesn't this interfere with that?  Just curious... I know what my answer is on that one...

 

Posted by Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) about 11 years ago

Hi Jeff!  Good question.  I actually look at it like this... obviously the ultimate goal is that the Realtor will list the home and I will lend the money to the buyer.  Perhaps we will even list the buyers house (if they have one) and we will be a part of that transaction as well... perfect world.  But I am a realist and know there are three possible scenarios that could happen:

  • First scenario - Realtor gets the listing after all.  The buyer is working with a Buyers Rep and they have a mortgage guy/gal already.  Here, I am not involved in the actual transaction.  What is the angle?  Are we able to list the buyers home (if applicable).  If we are not, then my agent is still able to complete the transaction on this home and we focus on the next one.
  • Second scenario -  Homeowner is able to sell the property on their own.  Buyer needs a lender (me).  What is the angle?  I will suggest that the buyer use the Realtor to ensure the process goes smoothly and they identify any areas the buyer may overlook (inspection, documents, value, etc.) Or perhaps the Realtor assists them with selling their home (if applicable).
  • Third scenario - Homeowners is able to use our contacts and sell their home on their own to someone that has a Realtor and a lender.  What is the angle?  Well, there really is not one.  Our best bet there is to try to help the selling buy their next home and lend them money.

As I mentioned in the third scenario, there is a possibility that no one is used in the transaction.  We may spend some time and energy into helping this homeowner and have nothing to show for it.  Well, perhaps we still receive referrals or make contact with those that came to the home but did not purchase THAT home.  Those visitors may be interested in other homes.  If we could use the referrals, they all is not lost.  Again, since I am a realist, I know there will be transactions that neither of us will receive a referrals or close a deal from a FSBO.  That is the cost of doing business.  We pick an angle and see how it works.  Most of the time, the Realtor and/or I will receive some sort of business from this transaction.

To answer your question about my relationships with Realtors.  Does this not help build the relationship?  When working with an agent, the goal is to watch out for each other.  Just like any referral, there are times when we will both be used and there are times with only one of us will benefit.  That's okay.  I will not get 100% of the transaction that my Realtors sold, whether its FSBO or just a standard listing.  By me helping my Realtor get business, I am building that relationship because they are aware that I am out for their best interest (and hopefully I can benefit as well because of it).

I'll give you an example... from reading my blog you know that I share lots of ideas with Realtors on AR.  As a matter of fact, most of my posts are Realtor Tips.  That is just one of the angles that I use to work with agents.  Some will use me because of this shared information and some will use the ideas and work with the lender they have known for years.  That is okay also.  I will still capture a far share of loans because I am sharing this knowledge and pick up some relationships along the way.

wow... I hope you are not offended, but I feel like you.  Typically, my responses are not this long.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com) about 11 years ago

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