Real Estate

How to successfully convert FSBO in your listings

I have been in real estate now for over 10 years. I started out with no sphere of influence and in a whole new area after moving across the country to relocate. In my first year, I was International Rookie of the Year with over $12 million in sales. One of my main target markets was for sale by owner.

I learned some key pieces to get these prospects to become my customers, this is the blueprint for conversion:

The first step is to have a real action plan for converting FSBOs into your listings. The action plan should span 90+ days for high-intensity contacts and then turn into lifetime “touches” to ensure they remain your customers and customers for life.

The initial step of the Action Plan is to find prospects: you can use a variety of sources, including the newspaper (online and offline), specific FSBO sites, and drive-through areas. 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 you are comfortable with. 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 would come into the office early in the morning and start making calls. You have to admire him, except he would always cut off his initial call script within 30 seconds because he would get hung up on!

The reason for his massive failure was that he took a course from a highly respected and successful real estate coach (albeit one who had never sold a house!). This coach taught him the script I hear all too often: “Hi, I’m Joe Smith, is the owner around here? Great, I get that you’re trying to sell your house yourself, is that correct? Wow, you know how many people try that and then end up listing with a real estate agent within 30 days? Do you realize that people have really died trying to sell their house 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 also get angry and hang up!!!

The other error script is to tell them you have a buyer you’d like to bring in. The only problem with that is that you don’t really have one and then show up to view the property and use an excuse that your buyer couldn’t make it, only to try to get them to list your home with you. ! Warning: you’ve heard it and you’ve already been there!

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 several reasons. You still have no idea why, but one of your missions later on will be to find out. First, you need to get your foot in the door.

I always used an approach that allowed me to tour your property without even mentioning the possibility of listing your home. If you approach the call as a genuinely interested person, then you will be more successful.

Once you have 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 start 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, tour and tour services, FSBO website listings, and more. The more the FSBO sees you as a friend rather than a salesperson looking to take another listing, the better it is for you, and for the future.

Your letter series should include brochures, guides, and other supporting materials that showcase your professionalism without requesting a listing. The examples in his marketing materials are good, but the actual step-by-step guides (“Hold a Successful Open House,” etc.) are much better. Once again, this is an opportunity to stand out as the expert and the one person trying to help the Owner for Sale succeed.

Here’s a key tip: ask to host your open houses. If you do this and do it correctly, you should get an additional 1-2 business from every Open House you help that FSBO owner with.

This is the bottom line: treat the FSBO as if they were already your customer. Help them with their efforts… if you follow the correct process, one of two results will occur. You will either be asked to list your property or it will sell and you will get additional referrals and business!

Good luck and go get them!

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