17 August 2018
One of the toughest groups to sell to as a real estate agent is FSBOs. After all, they’re independent-minded. They want to do it on their own. They may even take pride in their efforts to sell without a Realtor.
The good news is, there are often several “For-Sale-By-Owner” listings in a market at any given time. According to the Profile Of Home Buyers And Sellers, published by the National Association Of Realtors, the average is 8%. That’s a healthy crop of potential new business for you as a Realtor. Converting just a few can add thousands to your income.
So how do you do that?
Best Approach for Converting a FSBO: Become a FREE information source
The best approach to working with a FSBO is to remove your sales hat entirely. FSBOs have made up their minds that they do not need nor want to spend money for your services, and you’re not likely going to win them over immediately. Instead, make it clear up front that you will not charge them for professional advice. Keep in constant communication with them by offering free sound advice with no strings attached. Many FSBOs eventually realise that it’s in their best interest to hire an agent. This approach ensures that you are the agent that they go with.
3 Real Estate Sales Pitches to help you overcome objections
Here are three real estate examples of sales pitches that will help. Each are based on what research tells us motivates the FSBO.
The first is based on the fact that many go the FSBO route because they want to save money.
SELLER: “Frankly, I want to save money by not having to pay a commission.”
YOU: “That’s understandable. May I show you how I may be able to sell your home for a price that more than compensates for the commission? After all, it’s ultimately the profit you make on your home — what ends up in your pocket — that matters most, regardless of the expenses. Right?”
This pitch gets the FSBO thinking about their decision from a different angle. It also opens up the conversation. Now you’re talking!
Here’s another real estate sales pitch example. This one addresses those FSBOs who are hoping to sell to a neighbour or friend and, therefore, do not need an agent.
SELLER: “I have lots of friends and social media contacts. Some have expressed an interest in my home. I’m sure I’ll get an offer soon.”
YOU: “That’s great news. However, it’s important to have a contingency plan in case that doesn’t happen. Trust me, you don’t want your listing to end up languishing on the market. May I share some ideas on how I would market your home to eager buyers who are not in your network?”
This pitch gets the seller thinking about the downside of FSBO-ing. It also motivates them to at least listen to what you have to say. Again, it opens up the conversation.
The final example speaks to the do-it-yourself mindset many FSBOs have.
SELLER: “I’m going to sell my home myself. After all, I own a small business. I know how to market and sell.”
BUYER: “You can play a big role in selling your home — and still work with a real estate agent. I have a lot of expertise selling in this market. Let’s talk about how we might join forces and collaborate on getting your property sold quickly and for the best price.”
This script honors the DIY determination of the seller, so they don’t feel like they’re “giving up” if they hire you.
Try these scripts the next time you’re talking with a FSBO prospect and remember the key takeaways: make sure the FSBO feels that their objections were heard and to always return to the fact that you are here to offer yourself as free information source.
The majority of FSBOs eventually end up working with an agent. That agent might as well be you!