PROSPECTING FOR A FSBO LISTING: WHAT TO KNOW
Homeowners often jump into the world of listings by owner without considering the ramifications of their decision. These homeowners think they can save time and money by going it alone, without the help of a professional realtor.
They may often have a distorted perception of their property’s value, especially if they live in a desirable neighborhood during a seller’s market. But more often than not, within weeks, a FSBO homeowner realizes that they may be in over their head.
According to the National Association of Realtors (NAR), for sale by owner FSBO accounted for 10% of home sales in 2021. But what’s important to note is the typical FSBO home sold for $225,000, an astonishing 32% less than the $330,000 for agent-sold homes.
The same NAR report queried FSBO homeowners as to what they consider to be the most challenging aspects of selling on their own. Here’s what they told us:
1Getting the right price: 16%
2Understanding and performing the paperwork: 13%
3Selling within the planned length of time: 10%
4Preparing/fixing up their home for sale: 6%
5Having enough time to devote to the deal: 1%
6Attracting potential buyers: 1%
7Helping buyers obtain financing: 1%
WORKING WITH FSBO LEADS
Top-producing agents know that working with expired listing homeowners can be challenging but lucrative in the short run. Expireds might be angry, frustrated, impatient, or any combination of these emotions.
Yet, they may also have tremendous urgency to sell quickly, and they’ve already demonstrated their willingness to work with a listing agent.
As such, agents benefit from knowing how to navigate these emotional waters in building trust with expireds.
On the other hand, for sale by owner leads may connect you with a more relaxed homeowner who believes they'll ultimately save lots of money by selling alone.
They canbe more engaging and open to dialogue because they haven't had enough time to get frustrated by selling on their own. And while they may be focused on saving on commission, their bottom line proceeds can be higher when they work with a qualified agent.
So, as you consider your for sale by owner lists, it's important to remember that you have several goals:
Build rapport and trust, so the homeowner remembers and has a favorable opinion of you when they realize it's time to go with a pro.
Learn of their motivation – Do they have to move? Do they have to move quickly? If two “yes” answers, do whatever you can to get in front of them. Nothing beats a face-to-face meeting to establish a relationship and build the trust essential to business success.
The goal is to set a listing appointment. If not, set a preview appointment – “You’re right in the middle of where I sell property. I need to see what you have. Would 3 pm or 5 pm today be better for you? Would you like me to bring information on comparable homes?”
Following are a few tips to consider as you work through your FSBO List:
PRACTICE PERSISTENCE: It’s important to remind yourself that FOR SALE BY OWNER LEADS often get frustrated after a few weeks of going it alone. “That sub-par house around the corner sold quickly, and mine has not?” That’s why you must be persistent in your follow-up strategy to keep your name top-of-mind with the prospect when they are ready. Vulcan7’s best-in-class CRM PLATFORM makes organizing your follow-up effort easy.
CHECK YOUR EAGERNESS: Persistent follow-up is essential, but there’s a fine line between confident, persistent follow-up and over-eagerness. Being enthusiastic with a FOR SALE BY OWNER FSBO is fine, and remember that being patient with motivated FSBOs can pay dividends, too.
TAKE DETAILED NOTE: Diligent note-taking during your initial call can yield relevant information to keep your FSBO prospect engaged. Plus, you’ll have important information for follow-up calls with the prospect.
VALIDATE THEIR DECISION: FSBOs can be unsure that they’ve made the right decision to sell on their own. You can build trust by affirming their decision: “I respect the fact that you want to try to sell on your own”. Then persist and prevail! Make 2-3 attempts to help them in the first few weeks. Demonstrate how strong you will be when they hire you.
FOCUS ON DELIVERING VALUE: One of the best ways to build trust with a FSBO LEAD is to provide value when possible. For example, you might:
- Help them understand the paperwork.
- Suggest real estate-related vendors, such as mortgage brokers, home inspectors, etc.
- Offer to help them with a seller’s disclosure form.
- Suggest exciting ways to stage their home for an open house.
ALLOW THE PROCESS TO UNFOLD NATURALLY: Practical, open-ended questions can uncover the homeowner’s motivation. Do they have to move, and do they have to move quickly? When they sell, are they hoping to net the most amount of money for their home?
BE A GOOD LISTENER: Whether on the phone or in person, practice listening more and talking less. A good rule of thumb is to let the homeowner do 70% of the talking. The more you encourage them to speak, the more you learn about their dreams, desires, frustrations, and challenges. This knowledge puts you in a solid position to add meaningful value as you build a long-term relationship with your FOR SALE BY OWNER LEADS.
THE POWER OF FSBO SCRIPTS
Vulcan7 clients have access to the business's best real estate listing leads and resources, including:
- Expired listing leads
- For sale by owner lists
- For rent by owner leads (investor leads)
- Pre-foreclosure leads
- Circle prospecting software
- Premium neighborhood search
We also help you get the most out of those FSBO Leads with proven FSBO scripts.
Top-producing agents know how to master scripts to control the flow of a conversation with a homeowner.
Proven scripts help an agent to exude confidence, which goes a long way toward building trust with your prospect.
Global Leader in Real Estate Coaching and Training
Founder and CEO of SalesX Training
Top Producer and Host of Vulcan7’s Pre-Game Best Practices program
Founder and CEO of reverseselling.com
Below is a sample FSBO script from Brandon Mulrenin, CEO of ReverseSelling.com:
1Hi Brandon Mulrenin?
2This is _____________. I’m a local Realtor and I’m not sure now’s the right time, but I was hoping to tell you why I was calling and then you can decide if we should continue or not, fair enough?
3Ok great! I’m calling about that home for sale on Main Street and I understand you’re selling for sale by owner, is that right?
4Got it, I absolutely respect that and think it’s smart in this market regardless of what other realtors may say, I was curious if you’re open to the idea of a realtor bringing you a potential buyer for the home?
5Perfect! I was planning to preview some homes like yours this week before getting to work and was hoping to see yours as well, will you be home tomorrow afternoon between 4 & 6pm to show me the home if I was able to stop by quickly?
6Great! I’ll plan on seeing the home tomorrow right around 4pm and in the meantime, I’ll email you my agent information so you have that on file, what’s the best email for you typically?
7Got it, I’m looking forward to seeing your home tomorrow, have a great day!