FSBO sellers will reject it. Remember, they would rather not use your services. But if you maintain a steady professional relationship, offering to help and staying in touch for four to five weeks, you can usually win an interview. From there, a list follows.
Increase your chances of success by taking these two precautions:
1. Limit the amount of FSBO you grow. Focus only on the best customers.
2. Avoid prospects with low motivation or price expectations that are too high. These salespeople are often the most toxic, and all too often, they will try to take their frustrations out on you.
FSBOs essentially become a lead tracking game. You must communicate personally and regularly with your FSBO leads to discover their motivation and qualifications, schedule a face-to-face meeting, disqualify prospects as necessary, provide regular service and communication, and schedule an introductory appointment. You then need to repeat the service and communication steps several times a week until the listing is available.
To make a personal contact, start by asking the FSBO seller if you can come and see the house. You can ask them in different ways. You can explain that you want to keep up with the regional housing inventory; you can say that you are working with buyers who may be interested; you can introduce yourself as a potential investor; when you can, you can use the “non-inverse” technique. The following are sample scripts for each approach.
Script to keep up with inventory:
“Mr. Seller, your home is located in my main sales area. Since it is, I would like to visit and preview your home. Will there be a time on __________ or __________ to do so this week?”
Script to work with the potential buyer:
“Mrs. Seller, I understand that you are selling your house on your own. Let me ask you this: are you cooperating with real estate agents? What I mean is, if a real estate agent brought you a qualified buyer at a convenient price for you, would you be willing to pay a partial commission?
We are working with some buyers for your area that we have not been able to locate yet. Can I drop by on __________ or __________ at the end of this week to see your house?”
When using the above approach, understand that you are not interested in reducing your commission. What you’re really trying to do is set up a face-to-face appointment to gather more information about your salespeople’s motivation to determine the likelihood of getting a quote in the future.
Script for a potential investor:
“Mr. Seller, your home is located in a strong area for real estate investment. I was wondering if I could stop by to look at your home as a lead for a possible purchase and see if it is a property that meets my investment needs. Would it be better for me?” uncle __________?
When using the above approach, keep in mind that the key phrase is investment needs. You will rarely find an FSBO that meets your investment needs. My personal investment need is a home that can be purchased at a discount of 70% below fair market value. Most FSBOs are trying to sell your house at 110% of the fair market value. This technique takes you to the door to see the house and talk to them.
Script for a reverse-no:
“Ms. Seller, would you be offended if I came over for a quick look at your house?”
The reverse-technique cannot be used with any script. It takes advantage of the normal reflective human reaction of “no” to elicit a positive response. He opens the door for you to then make an appointment.
FSBO Survey Script
Hi, I’m from __________. I am looking for a house owner for sale.
His house is in my central area. I’m doing a quick survey of FSBOs in this area. Can I take a few minutes to ask you a few questions?
The ad in the newspaper said you had _____ bedrooms and _____ bathrooms.
1. Do you have a two-story or one-story home?
2. Are all the bedrooms on the same floor?
3. Are the rooms a good size?
4. How is the state of the kitchen?
5. Are the bathrooms in good condition?
6. Can you describe your garden to me?
7. Is there anything else you think I should know?
8. It seems that you have a great house; How long have you lived there?
9. Why are you selling right now?
10. Where do you hope to move to now?
11. What is your time frame to get there?
12. How did you select that area to move to?
13. How did you determine the initial sales price of the house?
14. What techniques are you using for the exhibition and marketing of your house?
15. Are you aware that over 86% of property buyers start online now?
16. If there was a clear advantage to you in using me to market and display your home, and it would cost you very little, would you consider it?
17. Let’s simplify. Set a time to meet for fifteen to twenty minutes, so you can see your home and understand your goals. Do I have __________ time available, or would __________ be better for you?
building relationships
FSBO relationships are built over time. By introducing yourself to owners the first weekend their FSBO is announced, before the masses start calling on Monday, you create a good connection. By sending them free tools, educational materials, reports, and forms, you become an ally. By taking a personal interest in them and their situation, you create a strong connection that, in many cases, pays off when homeowners decide to go with an agent they know and trust, preferably you.
As you build a relationship with homeowners, you’ll be able to make them understand that a commission is paid on every real estate transaction. In the end, FSBO sellers do not “save” the commission. Rather, they try to earn commission by doing the work of an agent. In doing so, they spend their money and time to perform, to the best of their ability, the functions of an agent. Those duties include exposing the home through marketing, introducing the home to buyers, building a buyer’s sense of urgency to generate an offer, scheduling home inspections, handling qualification checks with the lender, overseeing repairs, and facilitating the closing. .
Not only does it take a lot of work to earn the real estate commission, but FSBO owners unknowingly allow buyers to basically steal the commission through cheap offers. People who buy FSBOs are not doing it for their health. They want to secure a low price and a high initial capital position. In the process, they set out to “earn” the commission, and often do.
By building a relationship over time, you will prove your value to the FSBO seller. Remember at all times, whether you are working with FSBOS or expire, your goal is simply to be one of the two, three, or four agents that the owner will interview when the time comes. You just want the chance to compete and make your presentation.