With inventory in high demand, and buyers eager for deals, sometimes it takes a little objection handling skill and myth-busting to turn these sellers into happy clients.
So, let’s put on our “Myth-busters” hat for a moment and take a look at some common misconceptions:
1. All FSBOs are hard to work with. Really – all of them? In truth, most sellers who are trying to fly solo to get their homes sold are eager to save money, not well-informed as to what it takes to price right in today’s market and usually fairly motivated. Are they distrustful of agents? Sure, many are — but that doesn’t make them difficult – it makes them human beings. It’s YOUR job to earn their trust, treat them with respect, develop a relationship and make them raving fans.
How do you help develop that relationship? Consistent communication, professional presentation tools and a can-do attitude. Try the “7 touch” series of our real estate FSBO marketing postcards – they’re perfect for getting your foot in the door and raising those questions (and answering them) in the minds of the sellers that get them to then call you for help.
Or our FSBO door hangers are very popular (and perfect for keeping a stash in the car for a quick leave-behind every time you see a For Sale By Owner! Many of our direct response tools, and any time you are reaching out to get in the door of a potential listing, especially a FSBO, be sure to offer something of value. A fair trade item. A reason to contact you. (And a reason for you to contact them!) Great ideas for this are free reports, market information, list of resources, our Pricing Pyramid. You can find lots of fair trade items in our RESOURCE section of our site!
Click here or on the video box below to see how easy it is to order these door hangers!
2. All FSBOs Are Overpriced. Don’t you just love sweeping generalities? In truth, (again) – many probably are. But surprisingly, with all of the internet information out there, and the fact that it is a buyer’s market — many for sale by owner sellers DO get pricing a property right. But more often than not, they don’t get that they can get MORE for their home, statistically, using a real estate professional so it’s your job to help them understand that!
Many time sellers think, “how hard can it be?” Especially when they want to tack your commission onto the top of what you’ve already determined to be Fair Market Value so they can get every penny possible from their investment. When you say no to the higher price point, you’ll often get hit with the “I can just sell it myself and not have to pay anyone” response.
Here’s a technique to try:
“Mr. and Mrs. Seller, I can appreciate your thought. Many homeowners weigh out that option when they decide to sell their home. The top priority for most home sellers is getting the highest amount possible from their home. Is that your top priority as well? What I can share with you with you is a study conducted by the National Association of Realtors every year called the annual Profile of Home Buyers and Sellers.
It shows that in the last year, the average FSBO home sold for *$185,000 compared to $240,000 for agent-assisted home sales. So, you can see that even with paying a commission, I can still get you a higher dollar amount for your home than you could selling it on your own.
Would you like to know why? The biggest reason is the exposure I can create for your property as opposed to what you can do on your own. With an agent, the property is entered into the MLS where it is broadcast marketed to not only consumers via the paper, home guides, and a wide range of internet sites, but to the ______ agents in our area as well. By creating greater exposure for your property we create greater buyer competition which leads to a higher selling price.
That, and as a real estate professional with ___ years of experience and because I’m a third party, I’m better able to negotiate on your behalf, getting you the best deal for your home. You have to remember that a buyer working with a For Sale By Owner knows that you aren’t paying a commission, and more often than not, they’re well versed in the price of the comparables in your market, so they are already in “bargain hunting” mode.
When you take all of that into consideration, as well as how much of your own valuable time will be taken up with trying to do your regular job plus take on showing the property, trying to negotiate, searching for the necessary legal documentation and trying to qualify buyers, can you see how you could be saving more by using a licensed agent?”
This may be a good time too to introduce the Merchandising Review. If you’ve never used it, give it a whirl – you’ll make it a part of your listing tool chest from now on! It’s a great way to strategically walk sellers through ALL the components of salable listing and even helps to answer some questions (price at the top!) before they’re even raised. Download your copy for free and start using it today. By the way – here’s a little Merchandising Review dialogue you can use when contacting FSBOs.
As soon as you see that FSBO pop onto the market, you should contact them by telephone and attempt to use the Merchandising Review as a reason for them to set an appointment to talk with you.
“Hello, Mr./Mrs./Ms/Miss ____________, my name is _______, and I’m with ______. The reason I’m calling is that I see you have put your home on the market and I’m sure you’re eager to get the best price for it – right? (Wait for their answer!)
Wonderful! I wanted to offer you a very special tool that we use called a Merchandising Review Form…have you heard of it before? It is what I use to make a comprehensive analysis of whether a home is salable in TODAY’S market and what you can do to guarantee that it will sell for a great price and terms.
What I’d like to do is set a time when we could sit down together and go over the Merchandising Review. No cost or obligation – just something that can help you get your home sold. It takes about 20 minutes. (Set a time.)
Walk them through each item and negotiate the issues that were might keep the property from selling. Correct these issues, and ask if they would allow you to show them your marketing plan.
3. FSBOS can just do this on their own. I love this one. Truth is, statistically, most FSBOs do end up using an agent. In recent statistics only 8% of the homes sold according to NAR were FSBOs. And of those – 31% don’t even market their properties. So, they NEED someone like you to lend them the expertise to not just get a great price, but to make the process as headache free as possible.
Most Difficult Tasks for FSBO Sellers:
- Getting the right price . . . . . . . . . . . . . . . . . . . . . . . . . . . 18%
- Preparing/fixing up home for sale: . . . . . . . . . . . . . . . . . 13%
- Understanding and performing paperwork . . . . . . . . . 12%
- Helping buyer obtain financing: . . . . . . . . . . . . . . . . . . . . 6%
- Selling within the planned length of time: 3%
- Having enough time to devote to all aspects of the sale: 3%
FSBOs really are the “low hanging fruit” for many agents – why? Because they’re usually still motivated to sell! But the keys to success are that you have to consistent (can’t show up just ONCE – remember MOST deals are sealed after the FIFTH contact), timely (most successful FSBO experts make reaching out to FSBOs a DAILY business practice – no half-stepping it!) Know your business and your market (practice, drill and rehearse your presentation and you’ll create a presence as the turn-to agent in your market for FSBOs.
So go ahead – time to CRUSH IT and start listing those FSBOs and start maneuvering, out-selling and out-smarting the competition in your market place! And remember -we’re here if you need us. Call our team today at 866.405.3638 to help choose the marketing materials you need to capture this market!