With inventory in high demand and buyers eager for deals, sometimes it takes a little objection handling skill and myth-busting to turn FSBOs into happy clients.
The following are three common FSBO misconceptions. And how to turn them from myths to more listings.
1. FSBOs are hard to work with
Really – all of them? In truth, most sellers who are trying to sell themselves are eager to save money and fairly motivated, yet not well-informed regarding what it takes to price right in today’s market.
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 and professional presentation tools. Our FSBO Postcard Series are a great way to communicate and educate over time raising questions that will compel FSBOs to call you for help.
Our FSBO door hangers are also perfect for stashing in your car for a quick leave behind every time you see a For Sale By Owner sign.
Anytime you are attempting to get in the door of a potential listing, especially a FSBO, consider offering something of value. A reason to contact you. Great ideas for this are free reports, market information and a list of resources.
2. FSBOs are overpriced
Many FSBO homes probably are overpriced but surprisingly with the information available on the internet, many get the price right. However, more often than not, they still don’t understand they can likely get more for their home using a real estate professional.
The biggest reason this is true is the exposure an agent can create for your property as opposed to what a FSBO can do on their own. An agent enters the property into the MLS where it is broadcast marketed via the paper, home guides, a wide range of internet sites, and to other agents. This creates greater property exposure and more competition leading to a higher selling price.
A great strategic tool that allows you to walk sellers through all the components of the salable listing is the Merchandising Review. It even helps to answer some questions before they’re raised. The Merchandising Review is available as a Free Download Here.
As soon as you see a new FSBO, contact them to offer to complete a ‘no obligation” Merchandising Review. Explain the tool allows you to make a comprehensive analysis of whether their home is salable in today’s market and what will assure it sells for the right price. Then schedule a 20 minute time to meet with them to go over the Review.
Walk them through each item and negotiate the issues that 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 succeed on their own
The truth is most FSBOs do end up using an agent. According to NAR, statistics show only 8% of the homes sold are FSBOs. And 31% of FSBOs don’t market their properties. They need someone like you to lend your expertise for a headache free sale that achieves the most money.
Other tasks that NAR has shown are difficult for FSBOs include: pricing the home right (18%), preparing the home for sale (13%), understanding the paperwork (12%), helping the buyer obtain financing (6%), timely selling (3%) and time to devote to the sale (3%).
FSBOs really are the “low hanging fruit” but the keys to success are consistency and timely communication. Most deals are sealed after the fifth contact. Know your business and your market and you’ll create a presence as the expert in your market for FSBOs.
Get prepared for your next FSBO sighting by ordering 100 FSBO Door Hangers today to have available to leave on the door of the next home you see with a FSBO sign.
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!
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