Depending on the state of the real estate market, up to 20% of homes listed at any one time are For Sale by Owner (FSBO). So, there’s a good chance that in your real estate sales career one of your past clients will refer you to people who are trying to sell their home without a real estate agent.
Following-up on a FSBO, even when you’ve been referred, can be tricky. These people are inundated by Agents trying to get them to list the traditional way — and, as a consequence, they can be understandably defensive.
Yet, if you approach these independently-minded home sellers in the right way, you’ll have a good chance of getting a new listing and, ultimately, another loyal client.
Here are some tips for doing just that:
- A FSBO prospect will likely be weary of cold calls. Let them know that you’ve been referred. “Your work colleague, John Williams, suggested I give you a call…”
- Position yourself as the expert. Ask if they have any questions about the home selling process and then provide good answers. If they ultimately decide to go with an Agent, they’ll remember your helpfulness.
- Most FSBO prospects have taken the time to educate themselves on the fundamentals of selling a home. Acknowledge that. Let them know that you’re impressed with their level of knowledge.
- Never talk down to a FSBO prospect or correct them in any way that may come across as condescending.
- Recognize their independent spirit. If a FSBO prospect decides to go the traditional route, he’ll probably still want to be deeply involved in the home selling process. This is a good thing! Let him know that you’re willing to work closely with him to sell the house quickly and for the best price possible.
Takeaway point: Respect the independent spirit of the FSBO prospect and you’ll convert more of these referrals into new clients.
Make sure you use your IXACT Contact real estate contact management software to track your referrals and keep track of all your communication history, both with the referrer and the FSBO that was referred to you. I also recommend that you assign the FSBO to IXACT Contact’s 90 Day FSBO Prospecting Activity Plan that we’ve pre-designed for you. We’ve created exceptionally effective emails and letters you can send out – specifically designed to convert FSBOs to clients.
If you’re not using IXACT Contact already, sign up for a FREE 5 week trial today at www.ixactcontact.com!
We want to know: What is your experience dealing with FSBOs? Have you had luck in turning FSBOs into clients?