Ever heard that a whopping 92% of homeowners who try to sell their homes on their own eventually end up listing with a real estate agent? Yep, that’s right! Despite their initial confidence, most FSBO (For Sale By Owner) sellers eventually realize they need some professional help to close the deal. So, if you're a real estate agent eager to tap into this motivated market, it's time to sharpen your FSBO approach and turn those leads into listings.
Although the trend of FSBOs has seen a decline over the years, they still make up about 7% of all real estate transactions. That might sound small, but it's still a significant chunk, especially since these sellers are already actively trying to offload their properties. FSBOs have taken the initiative to list their homes, meaning they’re more motivated than many other leads. In other words, they’re prime candidates—if you know how to approach them correctly.
Your first move? Break the ice with a friendly, straightforward introduction:
“Hello, I’m a local real estate agent in [your area]. How’s your day going?”
It sounds simple, but this sets the tone. Keep it upbeat and positive. Be prepared for anything—FSBOs can be frustrated, cautious, or even a bit defensive. Your job is to stay friendly and keep the conversation going.
Once you’ve started the conversation, it’s time to get straight to the point:
“I noticed your home is on the market, and I understand you’re selling it yourself. I just wanted to ask if you'd be open to working with a buyer's agent if they could bring you a qualified buyer?”
This approach is all about being upfront. No tricks or games—just a simple question. Most FSBOs are willing to work with a buyer’s agent, even if they’re hesitant to pay a full listing commission.
Next, dig a little deeper to understand what’s driving their decision to sell. Ask:
“Have you already moved, or are you still living in the house?”
Follow it up with:
“So, where are you planning to go once the house sells?”
These questions help you gauge their urgency and timeline while building rapport, which is crucial for moving the conversation forward.
Here’s where you catch them off guard a bit:
“With the market being so strong right now, I’m sure you’ll have no trouble selling on your own. But if for some reason you don’t, you’re probably not considering other options for at least a few weeks, right?”
This technique, known as reverse selling, supports their decision while subtly introducing the idea that they might need a backup plan. This often leads to a more open and engaging conversation.
If the conversation is going well, move towards setting up a meeting:
“Well, I’d like to stop by sometime this week to take a quick look at your home, either before or after I head into work. What usually works better for you—mornings or evenings?”
This approach assumes they’re open to meeting, giving them an easy choice rather than an opportunity to back out. If they resist, remain respectful, but try to keep the appointment on track.
Once you’ve agreed on a time, confirm it with:
“I’ll pencil you in for [day] at [time]. If anything changes, I’ll let you know. Does that work for you?”
This keeps the conversation moving forward without giving them an easy way out. You’re taking the lead while making it easy for them to commit.
After setting the appointment, offer them something valuable:
“I’ll send you a quick email with my resume and contact details. What’s the best email to use?”
When you send the email, include your pre-listing package. It sets a professional tone and lays the groundwork for a more productive in-person meeting.
When you show up, be ready for anything. Some sellers might just let you walk through the house without much interaction, while others might seek your opinion on various aspects. Either way, be as helpful as possible. Bring a CMA (Comparative Market Analysis) and maybe even a seller disclosure form, just in case they don’t have one. Your goal is to build trust and demonstrate your expertise without being pushy.
Even if you don’t score a listing at the first meeting, don’t give up. Consistent follow-up is key. FSBOs often realize they need professional help as time goes on, and when that moment comes, you want to be the agent they think of first. It’s a numbers game—contact enough FSBOs, and you’ll eventually land the listings you’re after.
FSBOs are a rich source of potential listings if approached correctly. With the right script and a clear strategy, you can convert these leads into valuable clients, helping to grow your real estate business throughout 2024. Stay persistent, be prepared, and always aim to provide value—this could be your most successful year yet!
