How to successfully convert FSBO on your listings
I have been in real estate now for over 10 years. I started without sphere of influence and in a totally new area after moving across the country to move. In my freshman year, I was an International Rookie of the Year with over $ 12 million in sales. One of my main target markets was that of selling by owner.
I learned some key pieces to get these prospects to become my clients, this is the plan for conversion:
The first step is to have a real action plan to convert FSBOs on your listings. The action plan should span more than 90 days for high intensity contacts and then become lifelong “touches” to ensure they remain your customers and clients for life.
The initial step of the Action Plan is finding prospects – you can use a variety of sources, including the newspaper (online and offline), specific FSBO sites, and areas to drive. Once you’ve found them, you need to add them to your Action Plan and make that initial call.
The initial call should be something that is comfortable for you. It should not be threatening or question your intelligence. You’re probably laughing at this, but when I started, there was a colleague of mine who was also targeting FSBOs – he’d come into the office early in the morning and start making calls. You have to admire him, except he always cut off his initial call script within 30 seconds because they hung up on him!
The reason for his massive failure was that he took a course from a highly respected and successful real estate coach (although one who had never sold a home!). This coach taught him the script that I hear all too often: “Hi, I’m Joe Smith, is the owner around here? Great, I understand that you are trying to sell your house yourself, is that correct? Wow, do you know how many people do they try that and then end up listing with a real estate agent within 30 days? Do you realize that people have actually died trying to sell their house for themselves? … “
The conversation was based on fear and insulting his intelligence. What would you do if you got that call at 7:00 AM (or anytime)? You would be angry and you would hang up too!
The other error script is telling them that you have a buyer that you would like to bring. The only problem with that is that you don’t really have one and then you show up to view the property and use an excuse that your buyer couldn’t do it, just to try to get your home listed with you. ! Warning: they’ve heard it and been there already!
Your initial call should be one of understanding and patience, not fear and name calling. Remember, the FSBO has decided to sell your home without the help of an agent for a number of reasons. You still have no idea why, but one of your missions later will be to find out. First, you need to put your foot in the door.
I always used an approach that allowed me to tour his property without even mentioning the possibility of listing his house. If you approach the call as a genuinely interested person, then you will be more successful.
Once you’ve met them and toured the house. You will have much more knowledge about the property, the owner, and the reasons for trying to sell FSBO. You can then begin to build additional trust and offer help and assistance. This is accomplished through a series of postcards, phone calls, brochures, and letters.
Your postcard series should be aimed at offering various services for free or for a small fee: use of your IVR system, flyers, tours and tours services, FSBO website listings, and more. The more the FSBO sees you as a friend rather than a salesperson looking to take another list, the better it will be for you and it will be in the future.
Your letter series should include brochures, guides, and other support materials that show your professionalism without asking for a list. The examples in your marketing materials are good, but the actual step-by-step guides (“Have a successful open house,” etc.) are much better. Again, this is an opportunity to stand out as the expert and the only person trying to help the Sales Owner succeed.
Here’s a key tip: ask to host your open houses. If you do this and get it right, you should get 1 or 2 additional deals from each Open House you help that FSBO owner with.
Here’s the bottom line: Treat the FSBO as if it’s already your customer. Help them with their efforts … if you follow the right process, one of two outcomes will occur. Either you will be asked to list your property or it will be sold and you will get referrals and additional business!
Good luck and go for them!