For Sale By Owners – Discussion Points and tips to list more FSBO’s
I’m not discounting that we need to have some skills to get the job done, I am suggesting that it’s what our approach and expectations are that will make us win or have more challenges with the when working with the by owner seller.
If we know that the vast majority eventually list, why not say to yourself it’s going to be with me and in order for that to happen I have to insert myself into the conversation, the odds are in your favor. There are more by owner sellers than most agents have as a goal to sell each year.
Our job here is to sift through all of them to find the aces in the deck…or at least the face cards. The key is to never lose sight that the good ones are there and often we allow the others … the 2’s 3’s 4’s…the less qualified sellers influence us and discourage us. There are a lot of good people out there that are in need of your services…believe in what you have to offer and the solutions you can bring to them.
I like to say we have to be “sticky” like a stamp. Another way to visualize this is to think of it like you’ve spun a spider web…nothing gets out of your web (once it’s in there) unless you choose to let it go. Time on task over time beats talent every time.
This is quickest way to turn someone off and shut us down. It’s a tactic that I’ve heard many agents over the years use…fear and scare tactics don’t work. Remember the saying…it goes like this…a man convinced against his will is of the same opinion still. Be supportive (sincerely supportive and professional) and follow up until they’re ready to fold.
The point here is to be sure the lead meets your standards. When I say standards, I am talking about things like…location – within areas you service…price ranges…there may be a point in which you aren’t going to work a lead that’s at a lower price or higher price…this all depends on your experience, market and economic factors. I always have a standard around people’s attitudes…you have a choice and don’t have to work with unhappy people, negative people that have stinkin thinkin…it’s just a chance to reflect and ask yourself “is this business I want to pursue?”
First, on this one…ALWAYS listen with respect…I am just suggesting not to buy in to the story or get caught up emotionally. We have to separate ourselves from their circumstances and understand that at the moment they may not think they can this or that and in the end they will do what they have to do if they really need to move and are unable to sell themselves. Tell the story – seller NRH – not going to list, has a friend they’d list with and wouldn’t pay full comm. Not only did I get the listing, I got a full commission. Smoke screens are sometimes sent our way and we have to have a big fan to blow it out. Point: When the motivation is present, we all do what we have to do.
It’s important to keep this in mind…over the years and going back to the beginning of real estate as a profession, our industry represents (depending on the source) 8 to 9 out of every 10 homes that sell. And for the 1-2 of ten that sell, in many cases wasn’t that a by owner actually found a traditional buyer, there was an arrangement where a neighbor bought the home or a family member etc. If we have to offer didn’t work to bring homeowners more money, quicker sales with less hassles and reduce their risk/liability our industry would have gone away by now. This is why it’s so important to be top of our game and continuously be upgrading what we do as real estate professionals.
We never know where we’re meeting someone in their process … we only find out when we make contact with them…we don’t know if they’re just getting started or have been attempting to sell for months – tired of fielding calls – sitting their open houses – and being tied down to their homes. The only way to know if to make contact. Think about human behavior – are most of us by nature the type to stick with things when times are tough OR are do most of us tend to break down and give up? (WAIT). Exactly – so if we realize that as a society we have that tendency use that to your advantage and stay the course because the odds are they won’t!
Visual – you have a wall in front of you, you can’t climb or jump over it. How do you get to the other side? Take down one brick at a time until you can step over it to the other side.
Again, we don’t want to make them wrong here. This is a technique you can use to create doubt or curiosity in their minds. You can do this by asking strategic questions.
Curiosity – If I could clearly demonstrate a financial benefit by working with me…you’d at least want to know what is…wouldn’t you?
If we met and you felt I could get you more money, a quicker sale with less hassle, would you at least consider it? Testing the waters not all fish will bite, that’s ok.
Doubt: Since 85% of all homes sold in the US are represented by RE Agents…I was curious what marketing angles you’re using to tap into the 15%?
RECAP - Conversion Tips
Follow up is everything, especially when working with this group of sellers.
How to show less and sell more.
Your First Contact - Making it count with the 4 Ws: Why, Where, What, When
Make them convince you.
Listen for the following;
Clarity - Do they have direction, focus, and specifics in mind.
Urgency - What is the timeframe to work within? Do they have to buy or want to buy?
Open Minded - Are they coachable? Will they follow your lead?
Pre-Qualifying - It is about more than money.
Financially - Can they meet the lending guidelines to fund the loan?
Motivation - Are they truly motivated to buy a home?
Finances and Motivation must line up. The more time you take having a solid first conversation, the less time it will take you to locate the buyers new home and have your next sale under contract.
Consultation - This is where most agents get off track.
All parties must have 100% clarity of the desired outcome.
A consultation saves everyone time when showing property and prevents missed opportunity.
If a buyer resists meeting for a consultation, it is a red flag.
A consultation allows you to establish expectations up front.
Value Proposition
A value proposition differentiates you from the competition.
A value proposition gives them a reason to want to hire you.
Ask for a commitment. Getting a buyer commitment in writing up front is no different than working with a seller.
Your mindset will determine your success. There are three aspects to a winning mindset; attitude, approach, and expectations.
It is the small things that make a HUGE difference.
95% of your success is attitude; the other 5% is attitude.
What are you listening to? What are you reading? Who are you hanging around? All of these impact your attitude.
Have a plan.
Remember the five Ps - Prior Planning Prevents Poor Performance.
People don't plan to fail; they fail to plan.
Rome wasn't built in a day. You operate on 90 days cycles. Have you taken enough action, consistently over a period of time to have measurable results?
The 11th commandment - Thou shall not kid thyself.