Answers to Questions about
MASTERING the FSBO Listing Process

 
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QUESTION: Once I've made the initial contact how often would you recommend I follow up with a FSBO? (Submitted by Kevin in Raleigh NC)

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LISTEN TO MY ANSWER HERE:

LISTEN TO MY ANSWER HERE:
 

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LISTEN TO MY ANSWER HERE:
 

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ANSWER:  I'd recommend that instead of becoming defensive and telling them how much you DESERVE what you charge, understand that homeowners care more about their finances than yours. The only reason they'd ever ask you to CUT your commission is because the BELIEVE by doing so they'll come out better off financially. However, if they found out that paying LESS would actually COST them MORE they'd probably beg you to raise your fees, right? All you have to do is PROVE that CHARGING LESS to sell their home will COST MORE and CHARGING MORE will COST LESS. (I hope you're not confused yet...)

The real secret to educating sellers on how it COSTS MORE to CHARGE LESS takes nothing more than a little research and a teeny bit of math. Do this; spend a few minutes searching your MLS for homes that sold by brokers that typically charge less than you do. Then calculate their average MARKDOWN PERCENTAGE (list price less sold price as a percentage) and add that number to the fee you believe they charge. Compare those numbers to yours and you'll soon learn that CHARGING LESS to sell a home actually COSTS your sellers MORE. Now you just need to assemble the information in an easy-to-explain format and let your sellers know why they should PAY YOU MORE. I hope that helps...

QUESTION: Thanks to the system I learned in your workshop I've been having great success with the FSBOs that I'm able to reach when I call them --but what should I do with those that I can't reach by phone? (Sent in by Brian L. of Atlanta, Georgia)

ANSWER: First let me congratulate you Brian on your apparent success with those FSBOs you’ve been able to reach and thank you for submitting your question; I’m sure many others have the same issues. As you already know reaching FSBOs by phone is one of the most predictable, least costly and most effective methods of making the initial contact. Yet in light of that there will still be a group of FSBOs that no matter the time of day or the day of week they just aren’t going to answer the phone. My students tell me that nearly 25% of the FSBOs out there fall into the ‘Can’t Reach by Phone’ category. Doesn’t make sense does it?

The good news is that while you’re NOT reaching this group of folks by phone NEITHER are the other agents in your marketplace. This is good. Your options of course for reaching them are really quite simple — you’ll have to either visit them in person or send them something and hope they’ll call you. If you do decide to try visiting them just make sure you’ve got something to leave behind that’ll capture their attention and give them a reason to call you. The same holds true when sending them something; if it doesn’t give them a reason to call you they probably won’t. You must give them a reason to call you.

One of the most effective marketing pieces (I actually got it from one of my students a while back) that my students use for reaching Expired Prospects, Pre-Foreclosure Prospects, as well as For Sale by Owners they can’t reach by phone, is a simple piece of yellow-pad paper that is copied but looks like it was hand written. The key is to make it simple yet unique enough that a homeowner will look at it. (see sample to right)

So far the response from my student’s prospecting efforts has been a lot better than mailing letters or postcards, or dropping off refrigerator magnets or calendars. It’s quick, it’s easy, it’s cheap, it’s effective and it’ll help you to make contact with those FSBOs that just won’t answer their phone. Give it a try, I think you’ll be amazed. Good Luck.

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QUESTION: How would you recommend we get around the “Do-Not-Call” regulation?

ANSWER: While it may be a common misconception within the real estate industry that the DNC Registry 'Prohibits' calling FSBOs the truth is it doesn't -- at least that's the interpretation handed down from the NAR legal department. What the DNC regulation does prohibit is "initiating a call to a FSBO in an attempt to obtain a listing". In other words it says that it's perfectly OK to call a FSBO that's on the DNC Registry but only so long as you don't ask for the listing.

If you'd like to read for yourself just follow this link:
NAR Legal Opinion about the Do Not Call Regulation.

QUESTION: Scot, I can't seem to convince FSBOs to let me come over and meet with them. What am I doing wrong or what should I do differently? (Sent in by Irene B. in San Mateo CA)

ANSWER: I think the biggest challenge most agents have when it comes to working with FSBOs -- or any prospect for that matter -- is getting THEM to CHANGE their BEHAVIOR. In any given interaction either you'll change their behavior or they'll change yours. Becoming successful in this business, or any other for that matter, requires that you learn how to change behavior through simple persuasion. Persuasion should not be thought of as merely TALKING someone into doing something your way. Persuasion isn't the ability to pester someone into submission either. Persuasion is simply the art of helping others see other possible outcomes for their current actions.

Instead of trying to TALK FSBOs into meeting with you I'd suggest you focus on your conversational abilities. Get your FSBO to tell you why they decided to do this on their own and then ask them (this is how you help them see other possible outcomes to their actions) if they'd still be doing it themselves if they KNEW for a FACT that they could hire a PRO to do it for less?

More than likely you'll pique their interest and you can then leverage their curiosity to get them to sit down and meet with you. Give it a try and you'll see how well it works.

QUESTION: What’s the best way to get a FSBOs attention? I’m not really good at using the phone and would like an easier way to contact them.

ANSWER: The best way to GET a FSBO's attention is to OFFER a SOLUTION to a PROBLEM they didn't know they have! Now this may sound a bit convoluted at first but most agents are trying so hard to merely get HIRED by the For Sale by Owner that they forgot about some of the basic human instinctive behaviors -- folks with PROBLEMS seek out SOLUTIONS -- folks that don't HAVE a PROBLEM aren't looking for a SOLUTION.

PLEASE NOTE: Read this next sentence out loud three times before it will truly make sense to you.

If a For Sale by Owner knew that "IT COST LESS to HIRE A PRO than to SELL ON THEIR OWN" do you think they'd be doing it ON THEIR OWN?

Read it Once...Twice...Three Times -- Let it sink in and then move on.

I'll bet your first reaction to that question wasn't YES or NO -- but instead it was "How could that be?" Am I right? Well imagine the reaction you'd get from a FSBO if in fact you had them on the phone and asked them the same question. With experience you'd discover the same thing my workshop students learn and that is that a FSBO would NOT want to do it on their own if the KNEW they could HIRE a PRO to do all the work for them and it wouldn't cost a penny. Of course you'd have to be able to educate them on how this could be but once you get good at it you'll laugh as you think back to a time when you didn't know what you didn't know. Now you know!!
 

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QUESTION: What do I say to a FSBO on the phone when they tell me that they’re NOT INTERESTED in working with an AGENT?

ANSWER: Of course they don't want to WORK with an agent -- that's why they put the For Sale by Owner sign in the yard to begin with silly!! The next time someone tells you they're not working with agents just tell them that's not the reason you were calling, but thanks anyway. Naturally it helps if you really weren't calling to try to get them to list with you. Don't forget that the DNC regulation prohibits soliciting for business from anyone on the list and besides that, it just makes you sound desperate and needy when all you do is ask for listings. Save yourself a lot of grief and STOP calling FSBOs only to get business. You'll find that you'll get a lot further by focusing on building rapport first. Give it a try and you'll see how well it works.