I. Is working FSBO's worthwhile?

FSBO's are:
A great source of listings.
The majority of all FSBO's end up listing their homes
A great source of buyers.
FSBO's may not be in a hurry because they have not purchased a home yet.
A great source of referrals.
Possible double-dip.
Valuable market information
Lot's of fun! (When you get good at doing this.)
Builds confidence.

II. Why do homeowners try to sell FSBO?
"We want to save the commission."
Either they don't have a lot of equity, they need every penny to buy their next home, or they just don't think a REALTOR is worth "that much money." TRUTH: Two 10 yr studies proved that on the average FSBOs sell for 7-10% less than homes listed with Realtors.

"We want to lower the price so more buyers can afford our home."
Maybe the market is slow or interest rates highŠthey try to make their home more affordable, rather then list at higher price and pay a commission. TRUTH: Greater exposure through MLS brings better qualified buyers to home. Usually buyers shopping FSBO's deduct the "commission" from the offer no matter what the asking price.

"We aren't in any hurry."
They either haven't bought a home yet or wont buy unless they can sell for "X" dollars, or their "moving date" is a comfortable distance away. TRUTH: Timing is everything. No one can predict when that "perfect buyer" will come along. Plus, the longer a home is on the market, the greater chance of it getting "stale" and selling for less.

"We have the time (or experience)."
They don't have much else to do.
They may be experienced in sales or feel confident they can handle job of selling on their own.

TRUTH: Want something done? Give it to a busy person! Full-time realtors devote 40-60+ hours a week to serving their clients and customers. They know which efforts are most effective. Marketing is a lot more than just advertising. They work with greater number of buying prospects. Their knowledge, experience and tools far outweigh seller's time and energy.

"We had a bad experience with a Realtor"
Maybe they were unlucky enough to meet an unprofessional Realtor or they just didn't hit it off with him/her. Maybe they had it listed, and it didn't sell. Maybe they had a realtor out who gave them a "price" they didn't like.

"We've sold a house before."
Some people win the lottery, too.
TRUTH: In fact only 16% of all homes that sell are sold FSBO. Only a third of those sellers say they would ever do it again.

III. What FSBOs Want:
Confidence
Peace of Mind
Convenience
Control

IV. The Keys to Listing the FSBO
Establish rapport.
Create a relationship of trust.
Listening Building trust.
Belief builds trust and confidence.
Build the perception of value in your services.
Give you "presentation" to sellers, but only after rapport is established.
Show how you can solve their concern and needs.
Give service and follow-up.
People have different decision-making strategies.
Create a feeling of obligation

V. Know the benefits! In other words, how and why you can achieve better results.
Exposure to move buyers through MLS
Most serious buyers wok with Realtors. Buyers looking at FSBO's want to also save $$ on commission.
Exposure to better qualified, more affluent buyers transferees
These buyers can get financing
They will not tie up you time needlessly
Hundreds of agents working for you
You don't have to stay at home to receive phone calls
Buyers more confident dealing through agent
They are suspicious of representation (and price).
Agent maybe able to coax offer, while sellers may not.
Impartiality - Buyers are more honest with agents
Agents can overcome objections. Buyers can take more time going through homes while the sellers aren't there
Hundreds of ads/open houses vs. one
These benefits mean the seller will get more $, more quickly. And with fewer hassles
Buyers can compare homes with agent's help
Buyers can be pre-qualified by agent
Home is shown to all "most likely" prospects by appointment only.
Home is "marketed," not just advertised
All the paperwork is handled
Negotiating offer is better handled through "objective" third party
Agent is "working" only for the seller
Personality conflicts are less likely
Seller only pays when sale is closed
Doesn't pay attorneys for offers not agreed upon
Pricing. Agents know how to set the right price
Agents can follow up with buyers without implying that you're anxious or desperate.

VI. Getting to 'YES'
What is your reason for calling FSBOs?
You're farming their neighborhood.
You live in the neighborhood.
You have buyers for the area / style of home.
You have other listings in the neighborhood.
You have sold homes in the neighborhood.
You have buyers in their price range.
A friend told you about the home.
Your Approach!
First impressions are critical.
By phone - faster.
Face - to - face - more productive.
Be friendly, optimistic.
Be concerned, interested.
Be different, unique.
Be honest, professional, and assertive.

Introduce yourself in a pleasant, relaxed tone of voice. Speak slowly and clearly. Mention something you have in common that might be of interest to them. Ask questions showing your interest and concern for their situation. (Benefit: you find our how motivated they are.) Offer something of value to them. Tell them why you are willing to help. Make appointment to deliver your listing and marketing presentation Follow-up with a thank-you note.

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©2004 John Tenza www.Coaching2Greatness.com All Rights Reserved. 734-994-8400