For an agent wanting to increase business, one of the fastest ways is by prospecting for-sale-by-owners.

Have you seen an increase in the FSBO numbers in the last couple of years? History tells us over 80% eventually will list with an agent and usually within 60 days. There are forecasts that this will continue to increase over the next five years. Have you asked yourself how you should be positioning yourself to be taking advantage of the trend?

Like everything else in the real estate business though, successful agents are using different strategies with creative systems and programs to land this business than they used in the 20th Century.

• What’s Out is the high pressure, numbers game approach

• What’s In is the building of relationship and trust through systematic, value added contact.

Realistically, we know that selling a home is not just putting up a sign, running an ad and waiting. In the 2000 NAR Profile of Home Buyers and Sellers, the “typical FSBO home sold for $113,00 compared to $129,900 for an agent-assisted home." An old 1992 NAR study showed the value was 10% more money for the seller. And this doesn’t take into consideration the time, hassle and risks they will have with showings, taking calls, opening their home up to unqualified strangers and their unfamiliarity with the legal process.

You can do a better job and net them more money, even after they pay your commission, but most of them need to be educated to that fact. Your negotiating skills, your ability to pre-qualify prospective buyers, your broad ranging marketing systems and your ability to handle the inspection and disclosure processes will almost always increase the bottom line for a seller. However, most consumers simply aren’t aware of all of this and they feel empowered because they have done some research and they, mistakenly, think that information is knowledge.

What should you do?

If your business strategies haven’t been redesigned to fit the expectations and needs of the Internet consumer, now is the time to do it. While your FSBO strategy is only one segment needed to address the Internet consumer revolution, it can be a very lucrative one. To ignore this would be like refusing to believe that airplanes were going to replace trains.

Your strategy must focus on the consumer’s style and desires and buying preferences. Sure, you think you have been client-driven…..but are you really the easiest to buy from? To get information from? To deliver to the consumer what they want 24 hours a day, 7 days a week? Do you give information first and build trust or do you expect you can hold out and think they will eventually need you?

The FSBO seller often believes that all an agent does is put a sign in the yard, run an ad, put it on the Internet and wait. Unfortunately, sometimes this is true. So these sellers figure they can do that themselves and save thousands of dollars. Or they think they are smart to at least try it, since Uncle Joe told them how easy it was when he did it! With the ability to do market research on financial options, comparable sales and the listings in our MLS systems on the Internet, this FSBO feels self-confident and cocky. You really can’t blame them. As an industry, we haven’t always communicated well and educated the public to the myriad of services that we provide behind the scenes.

Published: October 26, 2001

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Joeann Fossland GRI, LTG, MCC is a dynamic speaker and business coach. Creator of THE REAL ESTATE GAMETM, she provides coaching solutions enhance your effectiveness and life balance. You can subscribe to her free monthly newsletter, attend free monthly telephone seminars, and find out about classes delivered by email and personal coaching by visiting JoeAnn.com or e-mail her at .