Making FSBO’s Clients

For Sale By Owners (FSBO’s) are a great group to prospect.  They want to sell.   The trick is convincing them they need a Real Estate Agent to do it.

The only advantage a For Sale By Owner has is saving the commission.  But statistics show they really don’t save the commission.  They are often on the market longer, sell for less than market value, and did all the work themselves.   Not to mention the legal and safety risks they took to sell it. 

However, Real Estate Agents have lots of advantages.  Agents provide experience for getting through the process smoothly, provide marketing exposure, price it right, sell it in less time, and HAVE the BUYERS.  Acquiring For Sale By Owners, despite the advantages, often takes patience and persistence.  

Here are some steps to help you make FSBO’s your client:

Step One: Find For Sale By Owners

This is the easiest step.  You can look online.  You can drive through neighborhoods.  You can look in the paper.  You can pay for a call sheet of For Sale By Owners (www.landvoice.com).  If you need help filling in missing information (names, address, phone numbers) you can try www.suprapages.com.  Side note: if you call be sure to cross reference all phone numbers against the Do Not Call Registry.  You can not contact any on this list without permission.  Or without the request of a client. 

Step Two:  Make a spreadsheet. 

You will need to create a spreadsheet to keep track of your FSBO contacts.  Your spreadsheet should contain address, name, phone number, week contacted, and how they were contacted.  You should also have a place to add information (IE: list price, notes, etc). 

Step Three:  Make a flyer or resume. 

Make a resume or flyer about you.  Or a flyer about the advantages For Sale By Owners have with using a Real Estate Agent.  The National Association of Realtors (NAR) has a great survey they do every year (NAR Profile of Home Buyers and Sellers) that gives the statistics of For Sale By Owners.  These statistics are a wonderful information source to give to FSBO’s. 

Step Four: Develop a level of comfort. 

There are lots of scripts to help agents get listing from For Sale By Owners.  Your real estate company probably has copies of some.  The key is to find your comfort zone.   Role playing is an excellent way to decide what to say before you get to the door or pick up the phone.  If you can’t find someone to role play with practice in front of a mirror. 

Step Five:  Develop a Plan.

Come up with a plan to set in place.  You need to contact them each week.  You will need to decide how you are going to contact them each week (phone, mail, in person, etc).  And what you are going to say and do once contact is made.  Here is an example plan to help you get started. 

1. Week one: Go to their house. Knock on their door.  Introduce yourself.  Tell them you noticed their lovely home and wondered if it would fit any of your buyers.  Try questions like:  “How much are you selling your home for?”, “How did you arrive at that price?”, “Have you had much luck selling it yourselves?”, “If I brought a buyer would you pay me a commission?”, and ”Why are you selling it?”  Try to get a conversation going to develop a rapport.  Developing a rapport is the goal.  Always be friendly and polite.  You are not there to debate them.  If they were not home leave the flyer you made (see step three) on their front door. 
2. Week two.   Follow up with a phone call.  The goal is to continue to build rapport.  Try questions like:  ”How is it going?”, “Have you had much luck since last week”, “Have you thought about using a real estate agent?”, If yes, “Did you have an agent in mind?”, “What kind of time frame where you trying to sell your house in?”   If you left a flyer you will need to start this conversation by introducing yourself and asking if they got your flyer.  If you do not reach them this week via phone leave them a message.
3. Week Three: Follow up with a hand written card. This card should be a card of thanks.  Thank them for talking to you.  Ask them to keep you in mind if they decide they need an agent.  Also include anything on a personal level you learned  (IE: I hope you are feeling better this week, I hope the painting is going well, etc.)  Be sure to enclose your business card.  If on week two you left a message try calling again.  If no answer leave another message.
4. Week four.  Go back to their house.  Knock on their door.  Take them something helpful (IE a seller’s disclosure notice, warranty brochures, etc).  Explain you were in the area and thought they might find ____ useful.  If they are not home leave the useful item with your business card on their door with a handwritten note (Sorry I missed you. I thought you could use this ____.  And here’s why ___.  Please call me if I can be of help.) 
5. Week five.  ETC.

Step 7 Get Started.

Timing is everything.  Since the majority of For Sale By Owners eventually list with a Real Estate Agent the key is to be in contact when they make that decision.  You may not get them on the first, second, or third contact.  You have no way to know when they will be willing to list with you.  It may take several months.   So remember persistence and patience is the key to making For Sale By Owners your clients.