FSBO sellers will reject you. Keep in mind that they would prefer not to use your services. But if you maintain a solid, professional relationship, offer help, and stay in touch for four to five weeks, you can usually win an interview. From there follows a list.
Increase your chances of success by taking these two precautions:
1. Limit the number of FSBOs you cultivate. Only focus on the best customers.
2. Avoid prospects with low motivation or unrealistically high price expectations. These salespeople are usually the most toxic, and too often they try to take their frustration out on you.
FSBOs basically turn into a game of lead-follow-up. You must personally and regularly contact your FSBO Leads to learn their motivation and qualifications, schedule a face-to-face meeting, disqualify prospects as necessary, provide regular service and communication, and schedule a presentation appointment. Then you have to repeat the service and communication steps several times a week until the advertisement is available.
To make personal contact, first ask the FSBO seller if you can come and view the house. You can ask them in different ways. You can state that you want to be kept up to date on the regional housing stock; You can say you are working with potentially interested buyers; You can present yourself as a potential investor; If you can, you can use the “reverse-no” technique. Below are sample scripts for each approach.
Script to manage inventory:
“Mr. Seller, your house is in my core area. So I’d like to come and see your house. Would there still be time for this on __________ or __________ this week?”
Script for working with the prospect:
“Ms. Saleswoman, I heard you sell your house yourself. Let me ask a question: do you work with real estate agents? I mean, if a real estate agent puts you in touch with a qualified buyer at a reasonable price, would you be willing to pay a fractional commission?
We are working with some buyers for your region that we haven’t been able to place yet. May I come by and see your home later this week on __________ or __________?”
If you use the above approach, understand that you are not interested in reducing your commission. What you’re really trying to do is schedule an in-person appointment to gather more information about what motivates their sellers to determine the likelihood of securing a listing in the future.
Script for a potential investor:
“Mr. Seller, your home is in a solid area for real estate investment. I was wondering if I could come by to view your home as a principle for a possible purchase and to see if it was a property that would meet my investment needs. Would __________ or __________ be better for you?”
When using the above approach, keep in mind that the keyword is investment needs. You will rarely find an FSBO that suits your investment needs. My personal investment need is a home that can be purchased at a discount of 70% below market value. Most FSBOs try to sell their home at 110% of fair market value. This technique gets you in the door to see the house and talk to them.
Script for a reverse no:
“Ms. Seller, would you be annoyed if I stopped by to have a look at your house?”
The reverse no technique can be used with any script. It uses the normal reflexive human response “No” to elicit a positive response. It will open the door for you to then make an appointment.
FSBO survey script
Hello, this is __________ from __________. I am looking for the owner of the house for sale.
Your home is in my core area. I make a brief overview of the FSBOs in this area. May 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 house?
2. Are all the bedrooms on the same floor?
3. Are the rooms a good size?
4. What is the condition 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 sounds like you have a great home; how long did you live there
9. Why are you selling at this time?
10. Where do you want to move now?
11. What is your time frame to get there?
12. How did you come to choose this area?
13. How did you determine your initial price for the house?
14. What techniques do you use to present and market your home?
15. Are you aware that over 86% of home buyers today start on the internet?
16. If there was a clear benefit to you in using me to market and showcase your home and it cost you very little, would you consider it?
17. Let’s simplify. Schedule a fifteen to twenty minute meeting so I can see your home and understand your goals. I have __________ time, or would __________ be better for you?
FSBO relationships are built over time. By introducing yourself to the owners the first weekend their FSBO is announced, before the Monday crowds call in, you create a good connection. By sending them tools, training materials, free reports and forms, you become an ally. By taking a personal interest in them and their situation, you create a solid connection that, in many cases, pays dividends when owners choose an agent they know and trust – preferably you.
In the course of building a relationship with the owners, you can make them understand that a commission is paid on every real estate transaction. In the end, FSBO sellers don’t “save” the commission. Rather, they try to earn the commission by doing an agent’s job. In doing so, they spend their money and time to perform the duties of an agent as well as possible. These duties include presenting the home through marketing, presenting the home to buyers, building a buyer’s sense of urgency to prompt an offer, scheduling home inspections, conducting qualifying checks with the lender, overseeing repairs and closing to facilitate.
Not only is it a lot of work to earn the real estate commission, but FSBO owners unwittingly let buyers steal the commission by offering underpriced property. The people who buy FSBOs don’t do it for their health. You want to secure a low price and a high initial equity base. In doing so, they set out to “earn” the commission, and they often do.
By building a relationship over time, you demonstrate your worth to the FSBO seller. Always remember, whether you are FSBOS or expired, your goal is simply to be one of two, three or four agents that the owner interviews at the appropriate time. You just want the opportunity to compete and give your presentation.