One way to increase real estate business is to court homeowners who are trying to sell their homes without a real estate agent.
Taking over “for sale by owner” (FSBO) properties is a way to obtain new listings. These sellers are motivated and ready to sell their homes.
Competition for these prospects is fierce due to the growth of real estate coaching, new technology, and inventory shortages. There are certain tactics that agents can use to win the business of FSBO sellers.
Here are some of the best ideas:
The first step is to understand their goals. What do they want to accomplish by listing the property themselves?
For most FSBOs, the answer is to save on commission. Let the prospect know that your goal is not just to get paid but to help them sell their home quickly and for the most money possible.
You want to work with them because it's in their best interest to work with you. Your vast experience and resources will help them get more money than they could on their own.
Convert FSBOs into clients by highlighting the ways you can help them. Point out that a "For Sale By Owner" sign in the front yard is not enough in today’s competitive market to sell a home.
If possible, use data or statistics to show that agent-represented listings sell at a higher rate and for more money than FSBO properties.
Here are some other benefits to highlight:
Explain that you have access to restricted market information that can help them sell their home.
When you list a seller’s home, you can quickly pull the information needed to properly price that home and include information that is not available on consumer websites.
Don't forget to remind the seller that not only do you have access to valuable information, but you know how to use it, thanks to your experience in the real estate industry.
As a professional, you likely have a large network of professional connections, such as real estate lawyers and home inspectors, who can help the FSBO seller navigate through the home-selling process with ease.
Help the FSBO seller understand that selling a home can be overwhelming without professional assistance.
According to Trulia, selling one's home ranks as high on the stress scale as divorce.
The process involves dozens of reports, disclosures, forms, and other highly technical documents. Let the FSBO seller know that your professional expertise can help them navigate the selling process and avoid costly mistakes or delays that can derail their closing.
You can help take the pressure off the seller, freeing up time they could spend with loved ones and pursue other activities.
Understand that it takes time and energy to win over FSBO sellers. Following through is a critical part of prospecting these listings.
Create a database of FSBO leads and check in weekly. If the prospect does not answer the telephone, send an email or text.
FSBO sellers represent a great source of additional business for real estate professionals.
Focusing your energy on FSBOs through initial contact and follow-up can increase your chances of outshining the competition and converting these prospects into clients.
This fully-customizable, white label ebook explains the aspects of using or not using a real estate agent. Just add your logo and branding, then give it to potential FSBO's, place it on your website, and more.
Topics: Real Estate
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