FSBOs are an important and successful leg of my business and they can be the same for yours with consistency and a solid game plan.
Here are 3 Keys to Success:
**Know Your Stats**
* 25% of FSBOs will list with an agent in the first 7 days of hitting market. Reality is- it only takes a few minutes for a FSBO to “hit the market” on Zillow, craigslist, etc.. and it’s really not hard. However, many realize quickly that they really need a professional. Think about a home improvement project you have personally started- only to recognize the next morning: this sucks, your back hurts, you don’t have the right tools, you don’t know what you are doing, it’s not going to turnout looking good- so you decide it’s time to call a pro.. 1 out of 4 FSBOs makes this same realization right away and they’re ready to list – WITH YOU. These are HOT listing prospects and will be receptive to value you bring.
* Another 25% of FSBOs will list with an agent between day 8-60. This group is more committed to trying it themselves than the first group. They are motivated to sell and they want to give it a solid try on their own. They will not allow you to come over for a “true listing appointment” on day 1 or likely even in the first 2 weeks- no matter what you say. The key to success for this group is to put them into a CRM/ database, (we use CINC) input all you can about them and whatever information you can glean from your conversations- schedule calls/ texts for every 7 days- deliver items of value in each conversation. (Monday is my favorite as they are often beat down and depressed the home didn’t sell at their open house over the weekend.)
* The last 50% will sell without a listing agent or they’ll take the home off the market as they really weren’t motivated in the first place. Don’t worry about these! I will happily take 2 out of 4 at-bats any day of the week!
**CONSISTENCY & FOLLOW UP!**
If you intend for FSBOs to be a true leg of your business- they must be called a minimum of 5 days a week and they must be called with-in 24 hours of hitting the market. Guess what- they always answer on day one! We pay a VA to search all “new FSBOs” in our market to add to our database 7 days a week. Knowing the stats we covered above, you can understand why FOLLOW UP is critical. Everyone feels like a winner at the starting line- keep following up so when they realize they’re actually not succeeding, they see YOU as their solution.
**Know Your Scripts:**
*“Hello is this _____? This is Craig Reger with XYZ Realty and I am calling about the home you have listed FSBO on 123 Main Street – is that home still for sale?*
*Thank you, I am sure you’re getting many calls from agents indicating they have a buyer for your home and I want to be completely honest – it’s unlikely I have a buyer for your property at this time, I do however specialize in helping for sale by owners net top dollar through aggressive marketing while also protecting your interest. You see, I don’t charge a commission I earn it! If I can show you a way I can help you sell without it costing you any additional money would you be willing to meet for 15 minutes?”*
This script absolutely dominates! For my coaching clients and me and my team, the stats are the same. Using this script, 1 out of 4 new FSBOs that hit the market will allow you to come over for a true listing appointment. Be prepared to keep reiterating: **“If I can make you more money, wouldn’t you agree it makes sense for me to come over for just 20 minutes?”** It’s not uncommon to overcome up to 5 objections on this first call before they allow you to come over. What I love the most is you haven’t set a preview and you haven’t misled the seller by saying you have a buyer who might be interested. This script is totally up front about your intention and ultimately sets a true listing appointment. Respectfully if you don’t believe as a licensed and trained professional you have the “ability” to net a seller more money than they can make on their own then look at your value proposition and whether or not you actually earn your commissions before calling FSBOs.
Seller: “If you bring a buyer over I will let you show the home and pay you a commission”
Agent: “Thank you for that opportunity and the reality is as a I mentioned- I have a track record of helping FSBO sellers net more money with my services than they can make on their own- I want to be very clear my job for the sellers who hire me is to bring dozens of approved buyers to your home, not just one.. when I do this- I often create bidding wars- that’s one way I can make you more money!”
If you have read this far, good job! I’d like to share with you a video of me role-playing these scripts and overcoming the most common objections- just leave your email address below.
Lastly a big shout out to Jon Ziegler on my personal sales team who just moved to Oregon 9 months ago. He is crushing FSBOs in a new market- and he has helped me execute all of the above at a very high level. He is proof that this system works!