Take a Walk in the FSBO’s Shoes
If you are going to successfully market to FSBOs, it is imperative that you demonstrate patience and restraint in your interactions. Put yourself in their shoes:
You have decided to list your home as FSBO. Most likely, you are trying to see if you can save several thousand dollars in commissions. You invested a few thousand dollars painting and cleaning your property. You have another $300 on a Sunday picture ad. You purchased a FSBO website and yard sign kit from your local big box home improvement store for $399. You have taken pictures of your property and uploaded them onto the FSBO site. You have spent dozens of hours and thousands of dollars on this project. Your ad hits on Sunday.
Fifteen agents call you before
- You politely say “no” to the first agent.
- You ask the second agent where they saw your ad.
- You begin to feel aggravated with the third agent.
- You become downright angry with the fourth agent.
Why Most Agents Quit Prospecting to FSBOs
Unless you were the first agent to call, the FSBO likely treated you poorly. Why wouldn’t they? Doesn’t it make sense that they would want to wait a few days to see if their advertising and hard work pays off? Of course.
Since they were likely treated poorly, most agents quit prospecting to that FSBO after the first approach. After several failed initial attempts, they quit prospecting FSBOs completely. Agents who successfully obtain FSBO listings use this to their advantage. They know the seller’s resistance lowers the longer they are on the market.
Know Your Facts
The truth is that a home listed by a full-service agent nets more money for the seller than if they listed it themselves. The facts assist you in inspiring the FSBO to make the better decision. By having a firm grasp on the following facts, you will be able to handle objections confidently.
According to the NAR Profile of Home Buyers and Sellers:
- A home listed FSBO sells for 15.4% less than if listed with a full-service agent. The average FSBO home sold for $187, 200 compared to $247,000 for agent-assisted homes.
- A home listed FSBO takes three times as long to sell.
- 50% of the sellers who successful listed FSBO said they would not do it again. In order of difficulty, the most challenging tasks were: preparing home for sale, understanding paperwork, pricing, finding buyers, and time.
- 86% of homebuyers found their home through a full-service real estate agent.
Additional reasons FSBOs will not net as much money on their home sale or be as effective as a professional real estate agent are:
- FSBOs attract bargain hunters and investors who are highly skilled negotiators.
- Most agents will not show FSBO homes, limiting the FSBO’s exposure.
- 33% of FSBOs sell to a referral. Homebuyers who are not familiar with the FSBO do not feel secure in purchasing homes from owners.
- Agents have up to 1 million dollars in “error and omissions” insurance, not available to FSBOs. This insurance protects the seller’s assets for years after the sale.
- FSBOs are not able to screen or prequalify buyers. They do not know who is coming into their house and may present a potential danger to their family.
Home Next>> Understanding the FSBO personality
We have prepared a complete guide to succesfully profit from For Sale by Owners with all of the necessary tools to convert FSBO's into listings.
This report includes-
How to identify For Sale by Owner's in your area at no cost
How to understand the four distinct FSBO personalities and capitalize on thier motivation
Five steps to converting For Sale by Owners into listings
Three fool proof scripts for contacting FSBO's and building rapport