Let’s face it, winning the trust of FSBOs won’t happen overnight. Wait! Don’t stop reading! This doesn't mean that you should stop pursing these highly-motivated seller leads. It’s all about patience, providing value, developing trust and following up.
On average most FSBO prospects aren’t actually ready for a listing appointment until the fifth or sixth contact!
It’s not an instant process by any means, but there are several things you can do to increase your chance of success in the long run.
Here are 5 of our favorite tips for building solid real estate relationships and providing value to FSBO sellers.
1. Focus on the Relationship, Not Just Winning the Listing
Most FSBO sellers are pretty determined to handle things by themselves (at least in the beginning). The last thing you want to do is come across as pushy. For some, the fear of dealing with a pushy agent is exactly what made them turn to FSBO in the first place.
So why even try?
There’s a high likelihood they will decide to go with an agent eventually. In fact, 80% of FSBO properties end up being listed with an agent before they sell.
So how can you nurture a relationship and provide value without driving these prospects away?
It’s all about building trust. Email marketing and Facebook are two great channels for accomplishing this.
Let’s first look at email marketing:
Providing prospects with relevant content via email is a highly effective way to help educate and build rapport. You aren’t being overly pushy about getting them to list with you, you are simply presenting information and insight from your many years’ experience. An email address is easy enough to get during your first touch-point. Simply ask if the seller would like some additional information about selling their home.
A few tips to keep in mind:
- Always provide value in your email
- Include a call-to-action (i.e. contact me to schedule a meeting)
- Always make sure there is an option for subscribers to opt out if they would no longer like to receive message from you.
Now, on to Facebook:
Facebook is where most of the U.S. population hangs out daily. Don’t be nervous if you don’t have a Facebook business page. The good news is that we can create and manage it for you with PropetyPulse. PropertyPulse turns Facebook friends and followers into leads and clients with various feature, including Social Auto-Poster and the Home Search Finder.
Sharing a mix of entertaining and educational content with your followers is a fantastic way to gain the attention of leads, build referrals and share your industry expertise. Not to mention, it’s a great place to also list your properties (this is another one of the great features of PropetyPulse).
2. Do Your Research Ahead of Time
Many agents are a bit squeamish about “cold calling” FSBO sellers. If you are included in the “many,” it’s time to change your thinking. These aren’t cold calls at all! You’re simply reaching out to motivated home sellers and attempting to make the process easier for them. See? Not so scary.
Some agents find success using scripts, while others like to see where the conversation naturally takes them. There’s no right answer, it’s all about what makes you feel comfortable and what works for you.
Remember, don’t take it personally if a seller doesn’t want to work with you right away. In fact, even the best agents typically list no more than 20% of the FSBO sellers that they talk to. This certainly shouldn’t discourage you from trying however.
When reaching out, be sure you have done your research ahead of time. The following are questions you should already know the answer to when you go to speak with the seller:
- How much is the home worth?
- What are some local comps in the neighborhood?
- What (if any) improvements would you make to increase the home’s value?
How do you plan on selling the home by the deadline if you were to get the listing?
3. Follow Up
As I mentioned earlier, on average most FSBO prospects aren’t actually ready for a listing appointment until the fifth or sixth contact. Why so long? Well, by this time, you’ve added value, built trust and have laid the groundwork for a great business relationship and let’s face it, if they haven’t sold their home yet, they are probably ready to switch things up!
You never know when that day will come that the FSBO thrill wears off. Once again, it’s not about being pushy, it’s about educating the seller and reaching out with a purpose. Did a comp sell in their neighborhood for much more than they are asking? Send an email, let them know. This is what it means to truly provide value.
4. Ask Hypothetical Questions to Gauge Motivation and Timeline
Getting to know the seller comes down to asking the right questions to better understand their needs.
“If I brought you an interested buyer tomorrow…?”
“How long do you plan on trying to sell your home?”
“Why have you chosen to go the FSBO route?”
“If the home doesn’t sell by your deadline, what’s your backup plan?”
Part of building a relationship with a lead is getting to know what makes them tick. From motivation to expectation, you’ll need to dig a bit deeper to uncover key information.
5. Be Prepared to Answer Objections Professionally
Not all FSBO sellers can be won over. It’s simply a fact. As you know, reputation is everything in the real estate industry so dealing with objections and even rejections in a professional way will help you in the long run.
Consider the common FSBO seller objections (commission costs are too high, there’s no foreseeable benefit to listing with an agent etc.) and get in a rhythm with your responses. In fact, many of the statistics we’ve provided on our infographic are great for doing just that!
Share this infographic online now or let us do it for you with your PropertyPulse free trial!