Most real estate agents are intimidated to call For Sale by Owners. Why? Is it because FSBO’s eat their young? Is it because you think the FSBO’s are smarter than you? Do they know more about selling houses than you do? What causes you to believe that you can’t list and sell a FSBO’s home? You do realize that in the current market, it’s almost impossible for a FSBO to successfully sell their home…So, let’s talk about calling FSBO’s …
Where Do I Find FSBOs?
If you were a typical FSBO, how would you advertise your home? A sign on the lawn, ads in the paper, on for sale by owner websites, and craigslist are some obvious choices. It takes a lot of time to compile your own list of FSBOs; I recommend signing up for a service like Landvoice or REAP. These services charge a minimal fee ( they average about $1.00 a day) and give you the names of the FSBOs in your area, with phone numbers and other pertinent information you need to successfully make the calls. Remember, often, you have to spend money to make money.
When’s the Best Time to Call a FSBO
In a competitive market like this, there really isn’t any specific “best” time to prospect FSBOs. I recommend calling 2-3 times a day until you speak to them. Start by calling them around 9am, then again around 12pm, and if you haven’t reached them, try towards the end of the day, at around 6pm. Remember, it’s a lot easier to get a hold of a FSBO than an expired, because FSBOs are expecting calls from potential buyers.
What do I say to a FSBO?
Be positive when you communicate with a FSBO, make sure that you do not insult them by telling them that they are wrong for trying to sell it themselves because they will immediately become defensive and refuse to do anything with you.
Take a look at Mike Ferry FSBO Script, it’s simple, to the point, and most importantly, it works!
Preview Appointments
Be careful when making a “preview appointment.” It is fine to say, “I may have a buyer for your home, can I take a look at your property?” When you go on a preview appointment, I suggest you bring a camera, take pictures of the home, then, with confidence, look the seller in the eye, shake his or her hand and say, “I can sell your house within the next 45 days and get you 1 step closer to (where they want to go), what’s a good time for me to come back and show you how I will do that for you?”
At this point, 1 of 2 things will happen… they’ll tell you “no, I want to try it on my own for a while” This is where you go back to the script and say,” How much time will you take before you will consider interviewing an agent to sell your home? What has to happen before you will hire a powerful agent, like myself, for the job of selling your home? (Mike Ferry FSBO Script)
Follow Up
When you think of a FSBO, think of someone testing you to see how aggressive you are. Most FSBO’s eventually list with an agent, usually the agent who worked the hardest to get the listing. You may have to go back to the FSBO 5-6 times before you get a contract signed; keep in mind that most agents stop after 1-2 contacts, hang in there, be the most persistent. Follow up is critical, don’t give up!
FSBO’s=something you have to remember< FSBO's are Buyer's Too!!!! Where are they going,ASK, you might have a buyer!!!!
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Neil Schwartz Reply:
August 25th, 2010 at 7:52 PM
Exactly, there are just so many ways you can successfully work with a FSBO. Don’t give up!
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I doorknocked an expired today and when I approached, the homeowner had his FSBO sign up on his lawn. My mindset was to treat this as an expired listing since I had never conversed with a FSBO before…they eat their young don’t they?
I’m going back!
Thanks
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Neil Schwartz Reply:
September 2nd, 2010 at 2:03 PM
Great, be sure to take a mental note and let me know how it goes.
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Hey NEIL now when I get in contact with a FSBO should I let them know I’m a agent from a company? If so, when should I bring that up?
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Neil Schwartz Reply:
September 14th, 2010 at 5:36 PM
You should bring it up right away. The last thing you’ll want to do is lie to a potential customer right off the bat. Don’t emphasize too much on it, or you’ll keep getting stuck.
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Neil,
The more I read your website, the more amazed I am. For once, there’s real, tangible, advice that actually inspires me to try something different. You don’t just talk about things, but you also provide the resources for someone to actually do something about it. I now have the FSBO script and the expired script that you provided, and I’m going to give this a shot. Not for 1 week, or 1 month, but until I succeed or die trying.
Incredible.
Here’s a question I was just thinking about. Would a person generally have more success with an expired than a FSBO? Or is there an even success rate?
I have been thinking of ways to get into the FSBO market. I know that a lot of FSBOs don’t want to pay commission, but I also know that they will eventually list with a REALTOR. Do you think it would be worthwhile to offer them a flat-fee service MLS listing, and then say “if you ever list with an agent, the fee you paid for the MLS listing will count towards the commission”?
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In my youth I was the number one FSBO Lister in my market place and I am always amazed that agents folded so easily at the commission objection and tried to offset it by rate cutting.. I liked to get the seller thinking yeah, I can sell this myself and the reason is I will save the six percent commission, and then take it away from them. I would ask do you know that a commission is going to be paid whether you sell it yourself, or use a broker. (don’t like the word agent, same with the word commission, prefer fee ]. Would you like me to explain what I mean by that?
Well, the real truth is every time a home is sold there is a commission built into the sales price and either a seller is going to get it, or a buyer is going to get it, or a broker is going to get it or any combination of the three.Now the buyer knows you are selling it yourself and says to himself why should I pay these people X dollars, they aren’t paying a broker and I’m bringing the money to the table to buy the house, that’s my money, why should I give it to them they aren’t.paying a broker. Have you decided how you will handle and overcome that objection yet?, After all you are doing every thing to market your house and should earn something for all your time and all your effort.
Maybe you will suggest splitting it with them, 3% for them, 3% for you, and maybe that will be enough for that buyer, would you be willing to do that? The answer is generally yes, and you say well if you willing to pay 3% to a buyer then it makes sense to me that you would also be willing to pay 3% to a buyers agent that has a buyer for your house, and the buyer would be happy because they have someone to write the contract and do all the stuff that agents do for there buyers and you still earn your 3%. We call that co-oping. so when your selling you house yourself and an agent asks if your co-oping.that is what they are asking. You will still be responsible for handling the sellers side of the transaction of course, but the buyer feels better having an agent helping them for their 3% and you still earn your 3% for being the de facto listing agent in the transaction.
This is just to give you an idea of this approach. The idea is to get them thinking that listing is really only costing them 3% and I will reduce that further into the presentation and soon they are seeing and asking themselves Is it worth keeping it going as a fsbo If I’m only going to save a few hundred bucks. Here is the point you usually get the will you list it for X percent question.And notice I never say you can’t sell it yourself, ever.Of course there is much more but I don’t want to write a book.
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Hey,
You mention to inform the FSBO YOU ARE AN AGENT UP FRONT but as I read Mike Ferry’s script no where does he ever mention he is an agent….
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First mention of “survey” and I would hang up. Not a fan of this script as it seems like more of a telemarketing call…
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I second the avoidance of the word survey. Use of that word lowers the percentage of success in every area of prospecting except one. And if you are actually doing a survey still avoid the word survey, you can word it differently, E.G. I was hoping to get your opinion on… people don’t like answering questions but do love to give their opinions.
And while I’m here, I know the mike ferry fsbo script works but I don’t like it for many reasons but if you haven’t anything better at the moment use it. Back in the day when I was the fsbo king I used another approach and listed 90% of the fsbo’s I went after. And then I made the mistake of accepting the boards offer to have me speak on fsbos and ended up with a thousand competitors all using my exact approach. I went on vacation right after I spoke and when I got back and hit my first fsbo, he said what is going on? your about the 20th agent to hit me up using those same exact words, did some kind of agent school just let out? Thus the creation of a new approach for me to use, which I used until I had to leave the state for medical care.
I know one agent who mailed out the mike ferry script to fsbos with a cover letter basically saying warning, you will soon be hearing from this agent, and it was successful for her for making that first appointment and building rapport by making a presentation by going over the script and what the agent was really after, and what was likely to take place. She became the fsbo queen in her market place.
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