Inside the Mind of a FSBO

Top-producing agents know that For Sale by Owner (FSBO) represents a significant revenue opportunity. In fact, many would say FSBOs are the untapped, low-hanging-fruit of real estate sales.Recently, Jackie Kravitz, South Florida super-agent, coach and host of Espresso Agent’s upcoming weekly video feature Objection Slayer hosted a Lab Coat Agents webinar on how to maximize the value of FSBOs. For more than two decades, Jackie has used FSBOs as the foundation of her hugely-successful business.While FSBOs might represent low-hanging fruit, they are also a category of homeowner/sellers who need to be handled with a nuanced, patient approach.Following are highlights from Jackie’s talk:

• Respect the FSBO: Keep a couple things in mind when initiating contact with a FSBO.
  • The decision to sell on their own could suggest an inherent distrust of real estate agents. They don’t know you. It’s likely they’ve received dozens of calls from hungry, aggressive agents prior to your call. So, their defenses might be up!
  • There’s a 9 out of 10 chance they’re selling on their own to save the commission. Moreover, if it’s a seller’s market, they’ll probably feel empowered and expect to easily sell their home (and pocket the agent commission).
  • Respect the fact that this is one of the most important financial decisions this homeowner will ever make. To that end, instead of working to convince them that selling on their own is shortsighted (a common agent error with FSBOs), go out of your way to show your respect and support for their decision.
  • Use “repeat and approve” statements to build rapport and trust: “Selling on your own, right? I think that’s a great decision. In this market, I suspect you’ll have no trouble selling. I wish you the best of luck.” By supporting instead of selling, you’ll built trust to lay the groundwork for future dialogue.
• Be a consultant: After affirming their decision to sell on their own, shift from being a sales person to a consultant. Learn how you can help them achieve their goal. Perhaps you can ask: “What can I do to help you sell your home in as little time as possible?” There are myriad ways to support a FSBO prospect:
  • Assist with paperwork; most FSBOs can get overwhelmed by the details and technical aspects of selling a home. Selflessly educating them through the process can yield dividends for you down the road.
  • Prepare a market analysis, with neighborhood comps.
  • Introduce the seller to your trusted vendors, from lenders to home inspectors.
  • Counsel them on the best way to stage their home for an open house.
  • Offer suggestions on enhancing their home’s “curb appeal,” such as inexpensive landscaping improvements.
• Tonality, and smart questions: Quickly assess your FSBO’s personality. “Drivers” might get defensive for fear that you’re looking to take advantage of them. On the other hand, “analytics” could be open to hearing more, especially if your tone is friendly. Always remember, a pleasant, friendly tone helps with questions such as:
  • “When you talk about saving money, what does that look like to you?”
  • “Do you have someplace you’d like to move to once you sell your home?”
  • “If I can show you how we can make more money together, would you reconsider letting me work as your agent.”
• Follow-up, follow-up, follow-up: Many agents often give up on FSBOs too quickly. They stay focused for a few weeks, but soon, their enthusiasm wanes, as does their motivation. Jackie Kravitz’s motto is to “never give up.” Call three times each day. Wait until the 6^th or 7^th call to leave a voicemail message. Make sure you ask relevant questions when leaving a message. Or possibly include some relevant, valuable information. “How was your open house yesterday? You had beautiful weather. By the way, did you know another house in your neighborhood went on the market a few days ago?”

Here’s the general rule of thumb with regard to FSBOs: they will likely lose patience with the process if they don’t sell quickly. Maintain a consultative role during that process to improve your chances of being in a prime position to get the listing once the seller has had enough.Remember that Espresso Agent delivers the best FSBO leads to your desktop every morning, along with a best-in-class CRM that keeps you organized and efficient as you stay engaged with your prospects.