Despite what some preach, there is no magic pill to converting FSBOs. Some FSBO strategies instruct agents to simply call the FSBO one time, the moment their advertising comes out, with the belief that the first agent to call the prospect has the best chance to earn the listing. The approach is to coerce the FSBO into a decision to list with the agent on the first call; if the FSBO does not list immediately, the agent is to disregard the lead. This strategy incorrectly assumes that the FSBO lacks sufficient motivation and is a waste of any additional time or effort. After consulting with hundreds of agents who have used this method, they report that it does not produce adequate results.
The agents we interviewed who have used this method report that they converted one FSBO out of twenty. According to the NAR, over 72% of FSBOs will eventually list with a full-service agent. So why would you be satisfied with 5% of that market share?
To increase your conversion rate to 50-80% you must embrace a multi-step system. If you follow this method systematically you will convert the vast majority of FSBOs that you desire.
Converting the FSBO in 5 Steps or Less:
- Identify FSBOs in your target area and/or supplement your FSBO list. Visit the following website for additional ideas on where to uncover FSBOs: http://www.archtelecom.com/products/data_service/fsbo.asp
- Call or knock on the door of the FSBOs. Use SCRIPT I to identify their personality and gauge/increase their motivation. Close for a preview appointment.
Note: The NAR says FSBOs listed on the National Do Not Call List are protected from telephone solicitation unless you have a buyer interested in their property. The Arch FSBO service will automatically query the FSBOs against the national DNC list. If you desire a FSBO listing, but it is listed on the DNC, it is advisable to visit in person.
- If you do not obtain a preview or listing appointment, subdivide your FSBO list into those who you feel that you will eventually obtain an appointment with and discard the rest.
- Call or visit the FSBOs in two days using SCRIPT II. Close for a listing appointment.
- If you do not obtain a listing appointment, call or visit the FSBO using SCRIPT III in two days. If you are successful with SCRIPT III, you have a very powerful reason to maintain contact every few days; to keep them up to date on the leads. Continue to close for a listing appointment.
Note: Whatever time frame the FSBO gives you, whether it’s how many days until they are ready to list or how many days until you should contact them again, cut it in half. Statistics show that seller's usually look for help around 21 days after start to market thier own home. One of the most important factors in determining whether or not you receive the listing is making sure you are "in front" of them when they make that decision.