Unlike a typical seller, FSBOs are their own breed of animal. Anyone who has tried to market their services to a FSBO should know, they can come across as stubborn, are difficult to persuade, and lack the knowledge to successfully sell their home. That’s why FSBOs make up only 7% of homes sold1. Even seasoned real estate agents have trouble earning their business.
While the FSBO market can be tough to penetrate, it’s another great way to earn new business if done successfully. Once you get the knack for winning over a FSBO, converting leads to clients will become second nature.
Let’s look at some strategies you can implement to get your foot in the door and get a FSBO on board.
First Impressions Are Key
One large misconception is that FSBOs do not market using the MLS. In fact, a good portion do market their property using the MLS and other online platforms. However, those that do usually have already been solicited by other agents. Instead, increase your probability of conversion by approaching FSBOs using physical signage (such as a yard or window sign) or local ads like those found in newspapers or magazines.
Once you find a potential lead, the next step is very important: make the introduction in person. Competing agents may have already tried reaching out to the lead online or over the phone. Add a personal touch and show them you respect them enough to earn their business. Meeting in person also appears less like a salesman and more like a professional looking to have a conversation.
Ask for A Walkthrough
You should come prepared to any FSBO meeting knowing the neighborhood and some basic information regarding the subject property. Asking for a walkthrough is a great tactic because it lets you ask more questions and allows you to visually inspect what you may have to work with. If you see any major issues right out of the gate, you may want to get through the meeting and move on to other leads. On the other hand, you might uncover some hidden selling points that the lead has failed to accentuate and that you can leverage to turn your lead into a client.
Be careful! Some FSBOs may want to know you have a buyer lined up before they let you complete a walkthrough. If this happens, remain non-committal. Mention that you may have a buyer but can’t say for sure without first seeing the property2. Let’s face it, most people wouldn’t buy a car without test driving it first. A similar principle holds true here.
Highlight Disclosure Requirements
According to the National Association of REALTORS®, one of the most difficult tasks for FSBO sellers is understanding and preparing paperwork. After a walkthrough, asking your lead if they have all their legal paperwork and disclosures prepared and ready may spark interest in their brain.
Since many FSBOs may not fully understand the legal consequences of not utilizing the proper or approved forms, or even delivering buys certain disclosures and documentation, this can lead into a good segway on how you can make their transaction more compliant, while probably getting them more money in a fraction of the time.
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1 Quick Real Estate Statistics. (2018, May 11). Retrieved March 16, 2020, from https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics
5 Strategies to Win Over FSBO Listings: 2-10 HBW. (2020, January 3). Retrieved March 16, 2020, from https://www.2-10.com/blog/5-strategies-to-win-over-fsbo-listings/