There is no hotter lead than a For Sale By Owner. There is no more difficult active prospect to convert than a FSBO.
Let’s start with their mindset. They are motivated by at least one of two things, agents are useless if not crooks and they don’t want to pay the commission. That’s the basis for it all with some varying degree. Also, they are getting lots of calls and solicitations from agents so their annoyance level goes up with us. But in the end, they get overwhelmed by the process generally and will list with an agent. Much like most rookies careers, it sounded easy in the beginning.
There are two main tactics to approach FSBO’s. One is a direct approach where you run them through. The other approach is to help them. Both work but I think there’s plenty of people out there that will show you the scare tactic scripts. I’ll show you the helping approach.
Most sellers are in over the head and don’t realize it. Here are a few opening lines:
- I’m calling because inventory is low and I’m want to stay up on all of the inventory. Can you tell me about your house?
- I’m a local agent and was calling to see how you are doing?
- I’m a local agent and I didn’t see photos for your home, can you tell me about it?
- I’m a Realtor and I have a client looking for a home in your area, can you tell me more about it? (Lots of people are tempted to lie about this. I don’t suggest lying.)
Now, the next response can easily be, “I’m not listing my home!”
“Great! I thought I might help you out. Pictures are one of the most important parts of marketing a listing. Would you like the contact information of my photographer?“
The rare suspicious person will ask, “Why are you helping me?“
The easiest answer is, “Why not?” If they push then you can just say whatever jives with your belief in helping people. And then continue to look for ways to help them. Where are they moving to? Can you help them with that? Find them homes or a referral.
Let’s look at the more straight-forward approach where you just ask them for an appointment to list.
- Do you plan to list with a real estate agent?
- How did you determine your price?
- How are you marketing your home?
- Have you seen my marketing plan?
- When would be a good time to come over to meet you?
- My commission is negotiable. When’s can I come over and discuss that with you?
- If you were able to walk away from closing with the same amount of money working with me as selling it yourself, would that be worth a 20-minute meeting with you?
- Where are you moving to?
- When do you need to be there?
- When was the last time you sold a house yourself?
- If I were to bring you a buyer, would you work with me as a buyer’s agent?
Exercise: Pick your path and make contact with two FSBO’s.
Do the work, get the results.
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