A few years back when I was teaching “Introduction to Real Estate Consulting” at boards and associations, it was common for agents, brokers, and managers who didn’t understand consulting to dismiss it as “discounting.” This type of comment was always amusing to me because, in fact, I developed my consulting model as an anecdote to discounting.

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BOCA RATON, Fla., Oct. 24 /PRNewswire/ — Foreclosure.com today announced a partnership with Indymac Bank(R) - the seventh-largest savings and loan in the nation - to market and facilitate the sale of thousands of Real Estate Owned (REO) properties via the Internet, adding another major national lender to its growing stable of prominent data sources.

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Most agents approach FSBO’s with one thing in mind: getting the listing. A good agent can differentiate themselves from the others and create some earning opportunities by looking beyond the listing.

NAR’s 2003 Home Buyers and Sellers Profile reveals 74 percent of sellers will list with the first person that has contacted them. In the FSBO market, this can lead to a problem, because it usually takes 30-60 days before that FSBO is discouraged enough to list their property. So, what do you do in the meantime?

The most successful agents are building relationships with those sellers and providing value. In his book Influence, Robert Cialdini makes the case that most people are very uncomfortable owing someone else and will do whatever they can to even the scales. As an agent provides value for a seller, that seller feels more and more obligated to balance the score. He call this the Reciprocity Principle.

So, what ways can you make it easy for them to give back to you without listing?

Here are some ideas:

• Become their buyer’s agentIf they are selling, they’ll need a new place to live. Be sure to ask what their plans are and find out if they are already committed.
• Refer out of town This is a great opportunity to make some very easy money. One new agent told me he had gotten 4 checks in the first 6 months of being in the business simply by calling FSBOs and asking if they were moving out of town and if they would like some information from a good agent in their new town. What a non-confrontive call! And probably some of the highest dollar per hour money you’ll make this year!
• Work their buyer pool The majority of people who come to look at their house will not be potential buyers or able to buy their house. Offer to hold an open house and qualify the buyers that come through. Partner with your favorite lender. This could be potential business for the lender as well and you’ll making deposits in their reciprocity account as well.
• Work with their friends and family The more value you have provided and knowledgeable you are, the more likely the FSBO will refer someone to you. If the FSBO does NOT list, they may be even more likely to do this, because they have evened the scales if they do list, but they feel more obligation if they have been successful in selling themselves and you helped.

If your focus is on creating value and discovering how this could be a win-win, you will be seen as a helpful professional, instead of a pushy sales person. Many agents ignore FSBO’s as a way to build their businesses because it feels too aggressive for their natural style and way of connecting with others. By focusing on these ancillary areas, this profitable market niche can create a source of steady, new income.

It is a sad commentary on how ineffective our industry has been at educating the public to the value of a real estate agent that most For Sale by Owner (FSBO) sellers believe that it is easy to sell a home. They think a sign in the yard, an ad in the paper and an open house will get their house sold. Sometimes they are right!

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The private equity party may be over but the news hasn’t yet made it to the real estate buyout funds, which are seeking $105-billion (U.S.) in new capital, a sixfold increase from January, 2006.There are 206 real estate-focused funds in the market raising capital around the world, an explosion of growth in what was once a niche sector of private equity, according to data from London-based Private Equity Intelligence.

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TUCSON, Ariz., Oct. 2, 2007 (PRIME NEWSWIRE) — GainClients, Inc. (Pink Sheets:GCLT), a provider of On Demand real estate marketing, is preparing to launch its new marketing software, E-Listing Advantage, to the For Sale By Owner (FSBO) market. E-Listing Advantage is an innovative marketing tool for mortgage professionals that allows loan officers to provide a syndicated listing service for FSBO listings (sellers) for free.

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